Lenovo Marketing Strategy – Marketing Strategy of Lenovo: Established in 1984 with the name of Beijing Lenovo Group has grown into a Chinese MNC that manufactures, designs, and sells a range of electronic and computer hardware across 170+ countries. Lenovo initially collaborated in partnership with IBM to serve as an important strategic partner in technological development. In the following year, it bought its computer business for $1.75 billion. The acquisition led to it becoming the 3rd largest maker of computers in the world (Volumes).
Lenovo At A Glance – Marketing Strategy of Lenovo
Company : Lenovo
CEO: Yang Yuanqing
Founder: Liu Chuanzhi
Year founded: 1 November 1984, Beijing, China
Headquarters: Quarry Bay, Hong Kong
Annual Revenue: US$60.742 billion
Profit | Net income: US$1.313 billion
Number of employees : 71,500
Products & Services: Smartphones, desktops, servers, laptops, tablet computers, netbooks, supercomputers, peripherals, printers, televisions, scanners, storage devices
Lenovo Fun Facts: Lenovo was known as ‘Legend’ for 15 years before receiving its current name in 2003. Just a couple years after the company’s inception, the name was changed from New Technology Developer, Inc. to Legend. It was under this new name that Lenovo would have its first successes.
Marketing Strategy of Lenovo
Lenovo’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Lenovo? Let us discuss.
Segmentation, Targeting, Positioning – Lenovo Marketing Strategy
Being present in many different categories of computer hardware and electronic products; Lenovo employs a mix of psychographics, demographics, and geographical segmentation strategies to boost the growth of its market in the highly competitive market.
Working closely with market forces has helped Lenovo to realize that various customers and customers must be targeted differently and they’re using various targeting strategies. Lenovo has established itself based on products and valued position strategies.
Lenovo Mission Statement
“To become one of the world’s great personal technology companies.”
Lenovo Vision Statement
“Lenovo will create personal devices more people are inspired to own, a culture more people aspire to join and an enduring trusted business that is well respected around the world”
“For Those who do”.
Competitive Advantage – Lenovo Marketing Strategy
Vertical integration across the supply chain and the manufacturing of its equipment on its own has allowed the company to focus on keeping the cost of production affordable while at the same time, staying away from OEMs (Original Equipment manufacturers) which has helped them to have a quick availability of their products on the market.
A broad product range and its operation in the meta-market have assisted the company to achieve economics of scale.
The presence across mobile, PC, and business operations across 170+ countries has not only provided Lenovo with advantages of cross-cultural exposure but also assisted Lenovo in defining strategies that are suited to the situation.
BCG Matrix – Lenovo Marketing Strategy
The PC segment is highly regarded because of its extensive product range that includes a huge number. of SKU.
Lenovo is just recently entering the mobile phone market that is growing at the fastest rate market and is therefore not in a position to profit from the opportunities
- Because of my limited experience in this industry.
- The market is already populated with huge numbers. of players, and they are consuming the other’s portion.
The enterprise solution business of the company is a niche business and is therefore to increase its competitiveness within the market.
Mobile phones and enterprise business is a question mark in BCG’s matrix.
Distribution Strategy – Lenovo Marketing Strategy
Lenovo sells its products through franchise stores and service centers, wholesalers, and retailers around the world.
In addition, with the rise and increasing popularity of the emergence of e-commerce websites, Lenovo is making its products available on e-commerce websites that are aiding them to reduce the costs of operation.
Brand equity – Lenovo Marketing Strategy
Advertising using Olympics, Cricket world cup, and other platforms. Lenovo has created a strong branding recognition in the PC market, and they are increasing awareness for their mobile phone market too.
Competitive Analysis – Lenovo Marketing Strategy
It has long been the main driving factor in the growth and growth of humans. Human race.
In the three SBUs (strategic business units) of Lenovo, The firm is faced with a lot of competition from national and international companies, but they’re able to survive in a competitive market thanks to their efficient operating system that is constantly striving to manage costs and create high-quality products.
Market Analysis – Lenovo Marketing Strategy
The market for smartphones and PCs is in the midst of a period of technology disruption. The companies employing the Blue Ocean strategy create a new value network and market and threaten the established giants of the market e.g. such as the widespread popularity of Android phones. Samsung took advantage of the opportunity, and Nokia dropped its market-leading spot (reference: Indian market).
Lenovo strives to keep up with improvement and improvements that are aiding them in staying ahead of their rivals in the marketplace.
Customer Analysis – Lenovo Marketing Strategy
Lenovo has products and services for a specific segment of its customers. Its customers include people corporate customers, as well as professionals who are looking to have fun in their lives and simplify their lives.
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