Founded in 1984 in Beijing Lenovo Group is a Chinese MNC that designs, manufactures and sells various computer hardware & electronics items in 170+ countries. Lenovo initially worked with IBM as a strategic partner for technological advancement and in the later year 2005, it acquired its personal computer business $1.75 billion. This acquisition helped it in becoming 3rd largest computer maker worldwide (Volumes).
Segmentation, targeting, positioning in the Marketing strategy of Lenovo –
Being present in such a large number of segments of computer hardware & electronics items; Lenovo uses the mix of demographics, psychographics & geographic segmentation strategies to drive the market growth in the competitive market.
Closely working with the market forces have helped the company to understand that different markets and customers need to be targeted differently and therefore they are using differentiating targeting strategy. Lenovo has positioned itself based on product & value-based positioning strategies.
Marketing mix – Here is the Marketing mix of Lenovo.
SWOT analysis – Here is the SWOT analysis of Lenovo.
Mission – “To become one of the world’s great personal technology companies.”
Vision – “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”
Tagline – “For Those who do”.
Competitive advantage in the Marketing strategy of Lenovo –
Vertical integration across the supply chain and manufacturing most of its equipment by themselves has helped the company in keeping its cost of manufacturing low and at the same time avoiding dependence on OEM’s (Original Equipment manufacturers) which will have help them in timely availability of its products in the market.
Broad product portfolio and operating in the meta-market products has helped the company in achieving economies of scale.
Presence across PC, Mobile & enterprise business in 170+ countries has not only given Lenovo advantage of cross culture exposure, it also helped it in designing its strategies accordingly.
BCG Matrix in the Marketing strategy of Lenovo –
Its PC segment is starred due to large product portfolio with such a large no. of SKU’s.
Lenovo has recently entered the fastest growing mobile phone market and therefore is not able to capitalise on the opportunities
- Due to less experience of this business.
- The industry is already having large no. of players, who are eating up each other’s share.
Its enterprise solution business is in the niche segment and therefore they are in process of building competitiveness in itself.
Mobile phone & enterprise business is question mark in BCG matrix.
Distribution strategy in the Marketing strategy of Lenovo –
Lenovo makes its products available through company’s franchise outlets, service centres, wholesalers and retailers worldwide.
Also with the advent and popularity of e-commerce sites, Lenovo is making its products available through e-commerce sites which are helping them in minimising its cost of operations.
Brand equity in the Marketing strategy of Lenovo –
Advertising with Olympics, Cricket world cup and at various other platforms Lenovo had created strong brand recognition in PC market and steadily they are creating awareness of their mobile phone segment also.
Competitive analysis in the Marketing strategy of Lenovo –
Technology has always been the driving force for growth & development of the Human race.
In all three SBU’s (strategic business units) of Lenovo, the company is facing stiff competition from other national & international players but they are able to survive in the competitive environment due to its efficient operational setup which is continuously working to control the cost and manufacture value for money products.
Market analysis in the Marketing strategy of Lenovo –
The PC & smartphone market is going through the phase of technology disruption where the companies using Blue Ocean strategy is creating a new market & value network and disrupting the already established giants in the market e.g. like with the high acceptance of android phone Samsung exploited the opportunity and Nokia lost the market leadership position (reference: Indian market).
Lenovo works on continual innovation & improvements which are helping them to be ahead of the competitors in the market.
Customer analysis in the Marketing strategy of Lenovo –
Lenovo has offerings for a different segment of customers. Its customers consist of Individuals, Corporate customers & professionals who want to enjoy their lives and want to make their life simple.
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A very good and well detailed document helpful as a base document for understanding marketing strategy