Lenovo - Building a Global Brand

I)Introduction Before Lenovo acquired IBM s personal computer division in 2004, it had a untouchable presence in Asia, especially in China. Most of its revenues came from there. IBMs personal computer division invented the PC in 1981. Through this acquisition Lenovo could brook IBMs telephone line contacts and relationships, and it became stronger, ranking as the third largest PC maker in the world right after the twain giants Dell and Hewlett-Packard. Nowadays, Lenovo is set up all over the world. IBM sold its PC business to Lenovo because IBM struggled with decrease profits. IBM started to make losses with personal computers. While IBMs PC business shifted from premium quality to a bargaining good model, Lenovo was able to grow to its highest saturation in China. IBM shifted its focus on high end margin businesses like consulting and middleware software. The acquisition helped Lenovo to shanghai in a bigger market. Both companies needed each otherwise in order to gro w and to stay in business. In general, companies merge because they need to cut expenses or to equilibrize in developing new products. HP acquired Compaq in 2001 and access acquired eMachines in 2004. That is why IBM wanted and needed to cooperate with some other company, too.

It do a smart decision in cooperating with Lenovo because Lenovo was a strong brand in Asia and a market attraction in China. A market leader is defined as roughlybody who has the largest market share and usually leads in price changes, new-product introductions, statistical distribution coverage, and promotional intensity (Kotler/ Keller, Marketing Management, page 299). This joint! -venture betwixt IBM and Lenovo is a very strong one because IBMs products arrest a good reputation and both can return nark to new big markets (IBM in Asia and Lenovo word-wide).There is a co-branding when two or more well-known brands are combine into a joint product or marketed together in some fashion (Kotler/ Keller, Marketing Management, page 344). Co-branding can...If you want to get a full essay, order it on our website: BestEssayCheap.com

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