聯想swot分析案例swot analysis of Lenovo
04-10, 2015
聯想公司swot分析案例
Lenovo swot分析背景信息
聯想swot分析矩陣圖
聯想swot四個層面具體分析
Strengths
Vertical integration. Lenovo’s strategy to vertically integrate has paid off. The business can keep costs low, keep up with the pace, control inventory and rely less on original equipment manufacturers (OEM).
Knowledge of China’s market. Lenovo has emerged in China and continues to be one of the largest players in homeland market. The firm’s knowledge of China’s market and the ability to suit Chinese tastes resulted for the wide acceptance and support for the business' products.
Low cost production. Lenovo manufactures nearly half of its hardware and has set up production plants in low cost regions such as China, Brazil and Argentina to benefit from higher margins. It is also able to manufacture low cost products that are price competitive.
Competency in mergers and acquisitions. Lenovo has been continuously acquiring firms to bring patents, new capabilities, assets and skills to the company. Most importantly, through successful acquisitions and joint ventures, Lenovo accessed new markets and distribution networks. Compaq is the most notable and successful Lenovo’s acquisition to date.
Strong patents portfolio. With an acquisition of Compaq and Stoneware and a help of firm’s R&D, Lenovo has gathered an important patents portfolio related to its PC and software businesses.
Synergy of knowledge and diverse workforce. Instead of traditional headquarter model, Lenovo manages 3 centers of excellence around the world (US, China and Singapore). Combining different skills and resources results in synergy and premium quality products.
Weaknesses
Poor brand perception in the developed economies. Lenovo’s primary market is Asia, where it sells most of its production. The company finds it hard to access US and Europe markets as its brand perception is low there.
Low differentiation. Apart from the low price, Lenovo products are little differentiated from competitors’ products and are in competitive disadvantage if the price offered by competitor is lower.
Commodity products. The large stream of Lenovo’s revenues comes from computer, especially laptop, sales, which is a commoditized product. Computer hardware (commodity) products are sold with a very low profit margin.
Opportunities
Growing India’s smartphone market. India’s smartphone market is one of the least penetrated among Asia/Pacific countries. Lenovo could easily penetrate India’s market with its already successful low price LePhone.#p#分頁標題#e#
Growth of tablets market. Lenovo currently ranks as 4th biggest tablets seller. The business could increase its market share by introducing better quality products.
Obtaining patents through acquisitions. If Lenovo wants to sustain its growth, it needs to obtain more patents and the best way to do that is to acquire the firms holding them, as it did with IBM’s Compaq.
Tablet market growth. Tablet market is expected to grow in double digits for the next few years and the company has a great opportunity to release new tablet models and benefit from the market growth.
Threats
Profit margin decline on hardware products. Lenovo’s main income is from selling hardware products, which prices will increase in the future due to rising raw material prices. This will add to costs for Lenovo and will further cut the profit margin.
Slowing growth rate of the laptops market. Growth rate of the computer market is slowing down and in the near future the markets will become saturated. It will prove hard for Lenovo to compete in such market and continue to grow its market share.
Saturated smartphone markets in developed countries. Although Lenovo does not compete in the developed economies with its smartphones it will have difficulties in growing its smartphone division and entering developed economies later as the smartphones market there is already saturated.
Rapid technological change. The serious threat that Lenovo and the other tech companies are facing is a rapid technological change. Companies are under the pressure to release the new products faster and faster. The one that cannot keep up with the competition soon fails.
Intense competition. The company faces intense competition in all its business segments. It competes in terms of price, quality, brand, technology, reputation, distribution and range of products, with Acer, Apple, Dell, HP and Toshiba.
Sources
Lenovo (2013). About Lenovo. Available at: http://www.lenovo.com/lenovo/uk/en/our_company.html
Lenovo (2013). Investor relations - Annual & interim reports. Available at: http://www.lenovo.com/ww/lenovo/annual_interim_report.html
Gupta, P. and Rigby, P. (2013). Lenovo entering 'PC plus' era, CEO says. Available at: http://uk.reuters.com/article/2013/01/10/us-ces-lenovo-interview-idUKBRE90903L20130110
Wikipedia (2013). Lenovo. Available at: http://en.wikipedia.org/wiki/Lenovo
http://www.strategicmanagementinsight.com/swot-analyses/lenovo-swot-analysis.html
Lenovo swot分析背景信息
聯想swot分析矩陣圖
聯想swot四個層面具體分析
Strengths
Vertical integration. Lenovo’s strategy to vertically integrate has paid off. The business can keep costs low, keep up with the pace, control inventory and rely less on original equipment manufacturers (OEM).
Knowledge of China’s market. Lenovo has emerged in China and continues to be one of the largest players in homeland market. The firm’s knowledge of China’s market and the ability to suit Chinese tastes resulted for the wide acceptance and support for the business' products.
Low cost production. Lenovo manufactures nearly half of its hardware and has set up production plants in low cost regions such as China, Brazil and Argentina to benefit from higher margins. It is also able to manufacture low cost products that are price competitive.
Competency in mergers and acquisitions. Lenovo has been continuously acquiring firms to bring patents, new capabilities, assets and skills to the company. Most importantly, through successful acquisitions and joint ventures, Lenovo accessed new markets and distribution networks. Compaq is the most notable and successful Lenovo’s acquisition to date.
Strong patents portfolio. With an acquisition of Compaq and Stoneware and a help of firm’s R&D, Lenovo has gathered an important patents portfolio related to its PC and software businesses.
Synergy of knowledge and diverse workforce. Instead of traditional headquarter model, Lenovo manages 3 centers of excellence around the world (US, China and Singapore). Combining different skills and resources results in synergy and premium quality products.
Weaknesses
Poor brand perception in the developed economies. Lenovo’s primary market is Asia, where it sells most of its production. The company finds it hard to access US and Europe markets as its brand perception is low there.
Low differentiation. Apart from the low price, Lenovo products are little differentiated from competitors’ products and are in competitive disadvantage if the price offered by competitor is lower.
Commodity products. The large stream of Lenovo’s revenues comes from computer, especially laptop, sales, which is a commoditized product. Computer hardware (commodity) products are sold with a very low profit margin.
Opportunities
Growing India’s smartphone market. India’s smartphone market is one of the least penetrated among Asia/Pacific countries. Lenovo could easily penetrate India’s market with its already successful low price LePhone.#p#分頁標題#e#
Growth of tablets market. Lenovo currently ranks as 4th biggest tablets seller. The business could increase its market share by introducing better quality products.
Obtaining patents through acquisitions. If Lenovo wants to sustain its growth, it needs to obtain more patents and the best way to do that is to acquire the firms holding them, as it did with IBM’s Compaq.
Tablet market growth. Tablet market is expected to grow in double digits for the next few years and the company has a great opportunity to release new tablet models and benefit from the market growth.
Threats
Profit margin decline on hardware products. Lenovo’s main income is from selling hardware products, which prices will increase in the future due to rising raw material prices. This will add to costs for Lenovo and will further cut the profit margin.
Slowing growth rate of the laptops market. Growth rate of the computer market is slowing down and in the near future the markets will become saturated. It will prove hard for Lenovo to compete in such market and continue to grow its market share.
Saturated smartphone markets in developed countries. Although Lenovo does not compete in the developed economies with its smartphones it will have difficulties in growing its smartphone division and entering developed economies later as the smartphones market there is already saturated.
Rapid technological change. The serious threat that Lenovo and the other tech companies are facing is a rapid technological change. Companies are under the pressure to release the new products faster and faster. The one that cannot keep up with the competition soon fails.
Intense competition. The company faces intense competition in all its business segments. It competes in terms of price, quality, brand, technology, reputation, distribution and range of products, with Acer, Apple, Dell, HP and Toshiba.
Sources
Lenovo (2013). About Lenovo. Available at: http://www.lenovo.com/lenovo/uk/en/our_company.html
Lenovo (2013). Investor relations - Annual & interim reports. Available at: http://www.lenovo.com/ww/lenovo/annual_interim_report.html
Gupta, P. and Rigby, P. (2013). Lenovo entering 'PC plus' era, CEO says. Available at: http://uk.reuters.com/article/2013/01/10/us-ces-lenovo-interview-idUKBRE90903L20130110
Wikipedia (2013). Lenovo. Available at: http://en.wikipedia.org/wiki/Lenovo
http://www.strategicmanagementinsight.com/swot-analyses/lenovo-swot-analysis.html
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