Lenovo Company SWOT Analysis
1. Introduction
Lenovo is one of the most prominent PC manufacturers in the world especially in Asia. It
is headquartered in Morrisville, North Carolina and has more than 25000 employees in the
world. In 2004, Lenovo purchased IBMs Personal Computing Division, its global PC
(desktop and notebook computer) business. The acquisition made Lenovo one of the
leading global PC makers. In addition, Lenovo is a Worldwide Olympic Partner and the
Official Computing Equipment provider for the Beijing 2008 Olympic Games.
Lenovo recorded revenues of $16.4 billion during the fiscal year ended March 2008, an
increase of 17% over 2007. The net profit of this company was $484 million in fiscal year
2008 compared with only $161 million in 2007, an increase of 201% (lenovo.com).
Lenovo is now in the process of international development. This essay will use SWOT
analysis to analyse Lenovo Company in the areas of strengths, weaknesses, opportunities
and threats respectively. Generally speaking, the international competition between
Lenovo and other IT companies is intense, and it may point out some weaknesses and
threats of Lenovo. However, international development can bring Lenovo unprecedented
opportunity to receive great benefit in the global market.
2. SWOT Analysis
2.1 Probable strengths
Compared to main competitors, Lenovo has three strengths. Firstly, Lenovos market share
in China is dominant compared to other competitors like Dell and HP. Lenovo is one of the
leading brands in China and has maintained this leading place for over 10 years. The
companys overall PC market share in China reached 34.6% in the 2007 fiscal year, an
increase of 0.7% over the record in 2006. Moreover, Lenovos greater China division has
been achieving 24% year-on-year growth in PC shipments during recent years and this
helps to strengthen its leading market position in China (lenovo.com).
Secondly, the companys product brand combination achieves greater recognition amongst
consumers than many of its competitors. Lenovo is selling the ThinkPad brand notebooks
which are considered to be the most engineered and reliable PCs in the world. The Think
brand has a large numbers of loyal customers all over the world. On January 3, 2008,
Lenovo officially announced the entry into the global consumer PC market with its new
consumer-oriented computer brand, Idea. The new series of desktop and notebook
computers (laptops for IdeaPad, desktop computers for IdeaCentre) are developed for the
demand of personal consumers and they will be complementary with the Think brand
computers which are focused on commercial market (Deffree＆Suzanne, 2008). Lenovos