SWOT ANALYSIS

OF LENOVO

Submitted to:- Dr. Rajeshwar Nath by:- Kamal Kant Soni

Faculty – Buss. Env. PG-08-36
INMANTEC
 LENOVO at a Glance

• The biggest IT Corporate in China

• Facing severe competition from Dell, IBM & other market player

• Established in 1984

• Initial Name : Legend Group Limited

• Name Changed to Lenovo in 2003

• Products:-

• Handheld Device (Desktop, Notebook)

• Consumer IT

• Corporate IT

• Average Growth Rate : 35%

Market Share :
Lenov
o
Other Competitor’s Shares:
1994 3.9%
Dell 29.5%
HP 17.4% 1998 14.4%
IBM 5.1% 2001 30.20%
Others 47.9%
•
 Lenovo V/s Dell
Dell’s SWOT
Strengths

• Best in After sale service

• Biggest market share

• Brand loyalty

• Major share of revenue in IT industry globally

Weakness

• Dell’s laptops most of the time affected from some

technical problems

• Not a manufacturing company of laptops. So some time

it suffer for delay in distribution

Opportunities

• Diversification strategy by introducing many new

products to its range

• Low price computers, laptops opened a big market share

for it

Threats

• Competitive rivalry that exist in the PC market Globally

• New entrants to the market

• Exposed fluctuations in currency market world wide

 Lenovo V/s Dell
Companies Dell Lenovo
Distribution Channel Direct Traditional
Credit Risk Very Low High
Inventory Holding Cost Low High
Inventory Turnover Period 6 days 30-40 days
Promotional Model Innovative Traditional
Production Mode Order – oriented Standard
Advertisment Exp. $100.7m $55.09m

Recommendation
• Select the right distribution channel i.e. direct channels
• Change the strategy of product model according to
segmentations

• Create the brand equity i.e brand loyalty, name

awareness, perceived quality, patents etc.

• Diversification required that may be business strength &

industry attractiveness

• Should emphasis on merger and acquisition

• Global Market Penetration

• Should focus on Price Strategy for Different

Segmentation