Customer
Before acquisition of IBM in 2004, Lenovo and IBM had contrasting client base and
geographical coverage. Customer analysis exhibits that the acquisition effectively
compensated weaknesses that each company had. Lenovo gained revenue mostly in the
Chinese market. In addition, 86% of customers were dominated by small business and
individual consumers while large enterprise and middle market took only 14%. On the
other hand, IBM was globally recognized brand, generating revenue from all across the
globe; however, IBM was relatively weak in China. 57% of IBM’s revenue was generated
from large enterprise and middle market while 43% was occupied by small business and
individuals. Moreover, Lenovo and IBM had significantly different focus on either
Notebook or Desktop. 85% of Lenovo’s sales came from desktop computers. Conversely,
IBM focused more on Notebook, generating 60% of sales from laptops. After acquisition,
Lenovo succeeded to build geographically well balanced revenue distribution in the global
market. Additionally, Revenue from desktop and notebook became almost equal
proportion in 2005. However, brand awareness varied in different countries. For example,
only 22% of German IT decision makers were familiar with Lenovo, whereas survey in
India showed 49% familiarity.
Competitor
In 2005, after the acquisition of IBM, the share of Lenovo in the worldwide PC market
was 7.7%, which was 0.3% decrease from 2004. Following Dell; 18% and
Hewlett-Packard (HP); 16%, Lenovo placed in the third position. Acer and Fujitsu
Siemens placed below Lenovo and almost 50% was dominated by small PC manufactures
