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SUMMER INTERNSHIP REPORT

ON

Feasibility of Notebooks against Desktops


SUBMITTED BY

SHISHIR GARG (PG 09 40047) (Accman Institute of Management, Greater Noida, UP)

Carried out during Summer Internship Program At LENOVO INDIA PVT LTD., Vatika Business Park, Sohna Road, Sector-49 GURGAON, HARYANA

SUBMITTED TO:

Prof. SUBIR GUHA (Faculty, Accman Institute of Management) & Mr. Pyush Khanna (Business Manager, LENOVO INDIA PVT LTD.)/ Mr. Siddharth Sharma (Sales Specialist, LENOVO INDIA PVT LTD).

CERTIFICATE FROM LENOVO

TO WHOMSOEVER IT MAY BE CONCERNED This is to certify that Mr. Shishir Garg, son of Dr. R. S. Baranwal, a student of Post Graduate Diploma in Management (PGDM), session 2009-2011 at the All India Council for Technical Education (A.I.C.T.E.) approved college Accman Institute of Management, Greater Noida, has worked as a management trainee at Lenovo India Pvt. Ltd., Gurgaon for two months (May 01, 2010 to Jun 30, 2010), as a part of his Summer Internship Programme (SIP). To the best of our knowledge, he is a very sincere and dedicated person. We wish him a very bright future.

Authorized Signatory DATE: / /

DECLARATION BY THE CANDIDATE

I, Shishir Garg (PG 09 40047), hereby declare that the project report entitled FEASIBILITY OF NOTEBOOKS AGAINST DESKTOPS, which is being carried out at LENOVO INDIA PVT LTD., GURGAON during the SUMMER INTERNSHIP PROGRAM of our college, ACCMAN INSTITUTE OF MANAGEMENT, GREATER NOIDA, as the partial fulfillment of the requirement for POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM 2009-2011) as per the AICTE norms, submitted to my Project Guide Mr. Pyush Khanna (Business Manager, UP and Uttarakhand, LENOVO INDIA PVT LTD.), to my faculty Guide Prof Subir Guha (Faculty, ACCMAN Institute of Management) and to Prof S C Ghosh (CHIEF CRIC), is my original work and not to be submitted for the awards for any other degree, diploma, fellowship or any other similar title or prizes.

Place: New Delhi. Date: Jul 12, 2010.

Shishir Garg (SHISHIR GARG) (PG 09 40047)

Acknowledgements

"Your treasure house is within; it contains all you'll ever need."

Making of this project was a tough job for me, right from understanding the topic to completion of the project; every other work questioned my abilities, attitude, innovative skills, inter-personal skills and the learning process about the subject (BUSINESS RESEARCH) which began couple of months ago. Thanks to some wonderful people who were with me in the form of Guide, teachers, motivators, parents and of course our competitors who motivated me and instilled in me the confidence I needed desperately to do the job. While it is not possible to name all of them, I would still like to mention a few important ones . . . . I would like to give my sincere thanks to my Project Guide Mr.Pyush Khanna, Faculty Guide Prof Subir Guha, motivator and CRIC Chief Prof S C Ghosh, my corporate Mentor Mr. Siddarth Sharma & all other faculties and some wonderful intellectuals at LENOVO INDIA for keeping the faith in me. I would like to thank the CRIC of ACCMAN Institute of Management for providing such a wonderful experience of Summer Internship Program at such an esteemed organization LENOVO INDIA PVT LTD. THE WORLDS LARGEST PC MANUFACTURER. I would like to thank to my friend, batch mate and colleague in this project, Mr. Deepak Kumar; we both have helped each other a lot whenever we felt some very hard problems, and we faced those problems very boldly. It was a very good experience to do my Summer Training with such a gentle man. I would like to offer my thanks to my friends and family members who were there for me in every thick and thin of mine. Every time, I felt tired and defeated they uplifted and filled me with energy. They understood me when no one could. Without mentioning the names I wish to thank them .. I know they will understand my feelings for them. SHISHIR GARG Date:-12\07\2010

INDEX
1. COVER PAGE. 2. CERTIFICATE FROM LENOVO INDIA PVT LTD. 3. DECLARATION FROM THE CANDIDATE. 4. ACKNOWLEDGEMENT. 5. INDEX. 6. EXECUTIVE SUMMARY. 7. OVERVIEW OF INDIAN PC INDUSTRY. i. ii. iii. iv. v. vi. vii. Introduction History Major Players. Critical Success Factors PEST Analysis Structural and Regulatory Reforms. Future of Indian PC Industry.

8. COMPANY PROFILE. i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii. xiv. Background. Vision. Mission. Culture at LENOVO. Objectives. Awards and achievements. Performance Heighlights-2009-10. Recognitions. Range of Products and Services. Michael Porters five forces Model. TOWS Matrix. SWOT Analysis. Strategic Analysis. Financial Position.2009-2010.

9. OBJECTIVE OF THE PROJECT. 10. RESEARCH DESIGN. 11. DATA COLLECTION METHODS. 12. NEED FOR INFORMATION. 13. SOURCES OF INFORMATION. 14. SAMPLE PLAN AND SAMPLE SIZE. 15. RESEARCH METHODS. i. Field work. ii. Probing. iii. Recording the response. 16. RESEARCH INSTRUMENTS. i. ii. iii. iv. Questionnaire. Observation. E- Mail. Interview.

17. DATA ANALYSIS. i. Scoring. ii. Editing. iii. Coding. 18. CONCLUSION. 19. ALTERNATIVE SUGGESSTIONS FOR LENOVO INDIA PVT LTD. 20. BIBLIOGRAPHY. 21. ANNEXURE.

EXECUTIVE SUMMARY
We started our summer training at Gurgaon branch of LENOVO INDIA PVT LTD with an exuberance of exploiting the awaited opportunity to get the much needed corporate exposure on May 01, 2010. After a couple of days of induction, we were assigned to work on the feasibility of notebooks against desktops. We grabbed this task as a challenge to prove ourselves and hence, proceeded with a great excitement towards the accomplishment of the same. This project gave us an exciting chance to aware ourselves with the overall knowledge of the existing PC Industry in India. Though, every other work challenged our skills and dedication, we also managed to get rid of those with the help of some wonderful people around us. It was a mixed experience of sorrow and delight while we were scanning through every nuke and corners of several corporate, B schools, malls and even individuals. At one place where we received a warm welcome with a glass full of cold water in such a scorching Sun over our heads, at the other, we were just pulled out of the doors. Yet, when our survey came to an end, we got a marvelous response along with a bunch of corporate contacts, which might help us in our future endeavors. Also, we managed to excavate some astonishing facts related to our objective which is hoped to be helpful to LENOVO, in order to strengthen their business empire. All the findings, along with respective suggestions and recommendations have been encrypted in our analysis part. Finally, we extend our heartiest thanks to Mr. Siddharth Sharma, in whom we saw a glimpse of corporate excellence and a wide source of learning through his experiences, Mr. Piyush Khanna, our project guide, who could share only a few of his valuable experience and guidance owing to his very busy schedule and honorable Ghosh Sir, Chief CRIC, ACCMAN, who provided us such a wonderful opportunity to work with such a reputed global brand.

OVERVIEW OF INDIAN PC INDUSTRY


INTRODUCTION
The PC Industry in India is a rapidly expanding industry. It has shown a remarkable growth in a very short span of one and a half decade after the economic liberalization took place in 1991. Post economic liberalization era and open market trade policy has opened the Indian market for the global players. This experiences the intense competition with the global giants like IBM (which later became LENOVO in 2005), HP, DELL, etc along with some domestic brands like HCL, ZENITH, etc. The PC industry in India has undergone a radical change during post millennium period (2000-2010). A vast investment in the field of research and development with the advancement of innovative technologies, Indian PC industry has been able to serve the different aspects of the life which ranges from education to industries, railways, aviation, shipment, space research and satellites to missiles, media to politics and even to all kinds of criminal investigation departments. The phenomenal growth rate of this industry in India is helping to stabilize the economic balance with 27% contribution in the countrys Gross Domestic Product. Millions of employment opportunities originate from this industry which contributes in increasing the per capita income of India from Rs.14400 p.a. in 1995 to Rs.38000 p.a. in 2010. Thus, the firm growth of Indian PC industry has helped the policy makers to eradicate even poverty up to certain extent. The growth of computer industry in India has led to the growth of software industry, the hardware industry and the internet in India. GOI has accepted the fact that in order to meet the expanding demands of India's more than 1 billion population, intensive computerization is not only inevitable but imperative. One can hardly imagine the present growth rate of this industry- the country which had only 100 computers in 1970s, currently holds more than 50 millions of computers i.e. one out of every 20 Indians own a PC.

HISTORY
The PC Industry in India started on a high growth path in mid 1980s. With the New Industrial Policy of 1984-85, the Indian PC industry was liberated from heavy government regulations (namely, the Monopolies and Restrictive Trade Practices Act) on import of foreign technology and was allowed to form collaborations with foreign firms.
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MAJOR PLAYERS

CRITICAL SUCCESS FACTORS ANALYSIS


Critical Success Factors (CSFs) are the critical factors or activities required for ensuring the success your business. The term was initially used in the world of data analysis, and business analysis. Most smaller and more pragmatic businesses can still use CSFs but we need to take a different, more pragmatic approach. Critical Success Factors have been used significantly to present or identify a few key factors that organizations should focus on to be successful.
LENOVO R T.W. R HCL T.W. R DELL T.W. R ACER T.W. R HP T.W.

FACTORS

WEIGH-TAGE

COST EFFECTIVENESS CORPORATE CULTURE SERVICES RENDERED CUTTING EDGE TECHNOLOGY BRAND IDENTITY CUSTOMER SATISFACTION EMPLOYEE BASE AESTHETIC FEATURES MARKET SHARE

0.3

2.4

1.8

1.5

7.5

2.25

2.1

0.05

0.3

0.4

0.3

0.3

0.35

0.1

0.8

0.6

0.6

0.6

0.8

0.05

0.45

0.35

8.5

0.43

0.3

8.5

0.43

0.15

0.9

1.35

1.05

0.9

1.2

0.15

1.35

1.2

1.2

1.05

1.35

0.05

0.35

0.45

0.25

0.25

0.4

0.05

0.3

0.35

0.45

0.3

7.5

0.38

0.1

0.3

0.4

0.5

2.5

0.25

0.8

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PEST ANALYSIS
A PEST analysis most commonly measures a market. Generally speaking a SWOT analysis measures a business unit or proposition or idea, whereas a PEST analysis measures the market potential and situation, particularly indicating growth or decline, and thereby market attractiveness, business potential, and suitability of access market potential and 'fit' in other words. PEST helps to identify SWOT factors. PEST assesses a market, including competitors, from the standpoint of a particular proposition or a business, whereas SWOT is an assessment of a business or a proposition, whether of your own or a competitor's. All businesses benefit from a SWOT analysis, and all businesses benefit from completing a SWOT analysis of their main competitors, which interestingly can then provide some feed back into the economic aspects of the PEST analysis. The four quadrants in PEST vary in significance depending on the type of business, e.g. social factors are more obviously relevant to consumer businesses or a B2B business close to the consumer-end of the supply chain, whereas this is not the case with SWOT.

a. Political Factors Influencing Indian PC Industry:-

i.

Government Stability As we know that government instability leads to economical & political hazards like inflation, dumping share markets, etc. hence government stability is a boon for the growth of any industry.

ii.

Environmental Protection Laws In contemporary world of personal computing, modern PCs are needed to be disposed according to the local-state and federal laws, to protect the environment.

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iii.

Special Incentives Such types of perks are provided to the employees in order to motivate them towards their contribution and commitment. These special incentives fill exuberance among the employees and thus increase the CAGR/SAGR of the organization.

iv.

Attitude Towards Foreign Companies Indian government has already opened its doors for the foreign players in this industry.

b. Economical Factors i. GDP Trends A country is known by the services it offers. Indian PC Industry contributes 7% of the overall GDP growth of India. ii. Inflation Rate While entire industrys growth rate declined during the global meltdown, Indian PC industry also experienced the Inflation rate of 11.89%. iii. Employment Generation Approximately 10 million people are working in this industry and it is expected to grow at the rate of 22% in the next decade. iv. Pricing Strategy With the intervention of open market, a revolution emerged, as a result of which major global player grabbed Indian PC market, which ultimately led to the rapid downfall of PC prices thus enabling almost all the middle class people to afford computers.

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c. Socio-cultural Factors i. Changing Lifestyles As we know that human wants are unlimited so, in this changing scenario, computers have become the essential part of the lifestyle of the contemporary world and in these too, anywhere and anytime computing has brought a sea change in the trends of carrying a notebook instead of antiquated desktops. ii. Career Expectations With the introduction of PC industry, a revolutionary change is being experienced in every field of our life, be it education, transportation, business, or even small shopkeepers like groceries, stationeries, chemists, etc. iii. Consumer Activism Several laws like RTI (Right To Information Act 05), Consumer Protection Act, etc. and majorly the internet accessibility to every door has made the consumers aware of the ifs & buts in all kinds of transactions. iv. Growth Rate of Population Higher the population more is the demand for PCs and since we (INDIANS) stand at the second position in the world in terms of population, so there is a wide scope for the growth of this industry in our country as compared to others, except China.

d. Technological Factors

i.

Industry Spending on R & D Currently the Indian PC industry is spending approximately 7% of their overall revenue i.e. 945 cr in its Research and Development.

ii.

Cutting-edge Technologies Indian PC industry has introduced various innovative features like Green Computing, Noise control Technology, Aesthetic features, Face recognition technology for convenient login, and many more which has positioned it in the global market.
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iii.

Transfer Rate of Technology Earlier, it used to take more than one year for any new technology to come in the market after getting developed inside the laboratory. But now, with the intervention of the ready to use technologies and increased adaptability, this transfer rate (from lab to field) got reduced to only 3 to 4 months.

iv.

Patent Protection After the Copyright Act 1957 was implemented, Intellectual Property Right regime has covered the innovative world with patent protection.

STRUCTURAL AND REGULATORY REFORMS Following regulatory reforms have come into picture as far as PC industry is concerned: Information Technology Act 2008(Amended). National cyber security. To prevent video voyeurism. Indian Computer Emergency Response Team (CERT) has been designed.

FUTURE OF INDIAN PC INDUSTRY


Measured by the age of many industries, the PC industry in India is still in its infancy. Yet, its growth and development has caught the attention of the world market so much that India is now being identified as the major powerhouse for incremental development of computers. The reason for this attention is not the actual size of the industry but its rapid growth rate during the 1990s, its growth rate in first decade of 2000 and the projected growth rate in the upcoming decades. As the socio-economic condition in India is developing, the PC Industry is bound to gain momentum because India is on the path of becoming the knowledge hub of the world in this century and this can not be possible without computers. So, Indian PC market is bound to grow at a very stunning rate.

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COMPANY PROFILE: LENOVO

BACKGROUND
YEARS EVENTS IBM PCD introduces its first personal computer, the IBM PC. 1981 1984
IBM PCD introduces its first portable computer, the IBM Portable PC, weighing 30 pounds. With an initial capital outlay of only RMB200,000, (US$25,000) Lenovos founding chairman Liu Chuanzhi, together with 10 like-minded colleagues, launches the New Technology Developer Inc. (the predecessor of the Legend Group) funded by the Chinese Academy of Sciences. IBM PCD announces its first laptop computer, the PC Convertible, weighing 12 pounds. IBM PCD announces the Personal System/2 personal computer. Legend successfully rolls out the Legend Chinese-character card. Legends Chinese-character card receives the highest National Science-Technology Progress Award in China. Legend Hong Kong is established. IBM PCD announces the Personal System/2 personal computer. The very first Legend PC is launched in the market. Legend changes its role from that of an agent for imported computer products into a producer and seller of its own branded computer products. Legend PCs are ratified and accepted by the China Torch Program. IBM PCD introduces ThinkPad, the industrys first notebook with a 10.4 inch color Thin Film Transistor (TFT) display and a Track Point (red ball) pointing device. Legend pioneers the home PC concept and Legend 1 + 1 home PCs enter the Chinese marketplace. Legend enters the Pentium era, producing Chinas first "586" PC. Legend establishes 1+1 retail network. IBM PCD introduces the industrys first notebook with integrated CD-ROM, the ThinkPad 755CD. Legend is listed on the Hong Kong Stock Exchange. The Legend PC business division is formally established. IBM PCD introduces the butterfly keyboard. IBM PCD moves from Boca Raton, Florida, to Raleigh, North Carolina. Legend introduces the first Legend-brand server. Legend becomes the market share leader in China for the first time. Legend introduces the first Legend brand laptop.

1986 1987 1988 1989 1990

1992

1993 1994

1995 1996

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1997

IBM PCD introduces the industrys first notebook equipped with a DVD-ROM, the ThinkPad 770. Legend signs an Intellectual Property agreement with Microsoft, the most valuable deal ever made in China at the time. Legend launches the first multi-function laser printer. IBM PCD introduces the industrys first Think Light, a small light that illuminates the keyboard in low light work environments, such as onboard an airplane. The millionth Legend PC comes off the production line. Intel Chairman Andy Grove attends the ceremony and takes the PC for Intels museum collection. Legend establishes the first Legend Shop. IBM PCD introduces the industrys first mini-notebook, weighing, under three pounds, with standard ports and a keyboard that is 95 percent of full-size. IBM PCD announces its exit from the retail business. IBM PCD introduces the industrys first PC with an embedded security chip. Legend becomes the top PC vendor in the Asia-Pacific region and heads the Chinese national Top 100 Electronic Enterprises ranking. Legend launches pioneering Internet PC, with its "one-touch-to-the-net" feature, which enables millions of Chinese PC users to easily access the Internet. IBM PCD ships its 10-millionth ThinkPad notebook PC. Legend becomes a constituent stock of the Hang Seng Index - HK. Legend ranked in top 10 of world's best managed PC venders. An IBM notebook with an embedded security chip becomes the industrys first notebook to be certified by the trusted Computing Platform Alliance, an industry body setting data security standards. Legend successfully spins off Digital China Co. Ltd., which is separately listed on the Hong Kong Stock Exchange. Legend appoints Yuanqing Yang President and CEO. Legend first introduces "digital home" concept and launches accessories-enabling PC. IBM PCD introduces Image Ultra and Rapid Restore, the first automatic data recovery technologies of their kind. IBM PCD announces desktop PC outsourcing pact with Sanmina-SCI. Legend launches its first technological innovation convention, Legend World 2002, which opens up Legends Technology Era. Legend introduces its visionary concept for the future of technological development and applications, its Collaborating Applications project, as well as its strategies for implementing Collaborating Applications. Legends supercomputer, the Deep Comp 1800 makes its debut. It is Chinas first computer with 1,000 GFLOP (floating point operations per second) and Chinas fastest computer for civilian use, ranked 43rd in the Top 500 list of the worlds fastest computers. IBM PCD introduces the industrys first notebook with an extended battery life of up to 11 hours. IBM PCD introduces its Think Centre desktop PC line. IBM PCD introduces its Active Protection System, the industrys first notebook with an airbag for hard Drive and data protection in case the system is dropped. IBM PCD ships its 20-millionth ThinkPad notebook PC. IBM PCD introduces its Think Centre desktop PC line. Legend announces the birth of its new "Lenovo" logo to prepare for its expansion into the overseas market. Based on the collaborative application technology, Lenovo initiates IGRS Working Group, in cooperation with a few large companies and the Chinese Ministry of the Information Industry, to promote the formation of the industrial standard. Lenovo launches a Tech Road Show 2003 nationwide to promote Lenovo's innovation. Lenovo successfully develops Deep Comp 6800 in November 2003. It ranks 14th on the global list.
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1998

1999

2000

2001

2002

2003

2004

IBM PCD introduces the Think Centre ultra small desktop PC, no larger than a box of corn flakes. IBM PCD introduces the first notebook with an integrated fingerprint reader. IBM PCD ships its 100-millionth PC (counting both desktop and notebook computers). Lenovo becomes an Olympic worldwide partner. It is the first Chinese company to become a computer technology equipment partner of the IOC. Lenovo decides to develop the rural market by launching the "Yuanmeng" PC series designed for township home users. Lenovo and IBM announce an agreement by which Lenovo will acquire IBMs Personal Computing division, its global PC (desktop and notebook computer) business. The acquisition forms a top-tier (third-largest) global PC leader.

2005

Lenovo completes the acquisition of IBM's Personal Computing Division, making it a new international IT competitor and the third-largest personal computer company in the world. Lenovo announces the closing of a US$350 million strategic investment by three leading private equity firms: Texas Pacific Group, General Atlantic LLC and Newbridge Capital LLC. Lenovo introduces the industry's thinnest, lightest and most secure Tablet PC, the ThinkPad X41 Tablet. Lenovo introduces the first widescreen ThinkPad with embedded wireless WAN, the ThinkPad Z60, available for the first time with a titanium cover. Lenovo becomes the world's largest provider of biometric-enabled PCs by selling its onemillionth PC with an integrated fingerprint reader. Lenovo technology flawlessly supports the 2006 Olympic Winter Games in Torino, Italy, supplying 5,000 desktop PCs, 350 servers and 1,000 notebook computers. Lenovo also hosts seven Internet lounges for use by Olympic athletes and visitors. William J. Amelia is appointed as CEO and President of Lenovo. Lenovo introduces the first dual-core ThinkPad notebook PCs, improving productivity and extending battery life for up to 11 hours. The first Lenovo-branded products outside of China debut worldwide. Researchers, scientists and product design teams from around the world combine Lenovo's heritage in enterprise and consumer PC technology to design the Lenovo 3000 product line, which features new desktop and notebook models specifically designed to provide worry-free computing to the small business market segment.

2006

2007 2008 2009

VISION OF LENOVO
At Lenovo, their vision is to be a company respected for the remarkable contributions they will make to society through the advancement of technology, business practices and their role in protecting the environment and respected by their people for the career and financial opportunities they will find, as well as the personal satisfaction for helping bring about these remarkable achievements. This vision guides how they think, how they work, and how they interact with their customers, suppliers and colleagues.

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MISSION OF LENOVO
To become the new leader in the world of computers LENOVO = LE + NOVO LE means Leader, NOVO means new. So, LENOVO is the new leader.

CULTURE @ LENOVO
Their culture defines them its their DNA. Its the values they share and the business practices they deploy. Their culture is what has enabled them to consistently raise the bar on delivering break-through innovations and award-winning designs. They are dedicated to the satisfaction and success of every customer. They pursue innovation and deliver the products and services that matter to their customers with speed and efficiency. They strive for trust, honesty and personal responsibility in all relationships. And they seek to work collaboratively, respect and value our differences, and enjoy the opportunity to work across cultures.

OBJECTIVES OF LENOVO
o To provide the computing solutions with an ease at affordable price. o To work as a catalyst to bring about institutional improvement in streaming the functions of PC business. o To mobilize various types of resources viz. domestic and international. o To strive for up gradation of skill in PC sector for efficient and effective growth of the company. o To maximize the rate of return through efficient operations and introduction of innovative environment friendly Desktops and Laptops and services in PC sector.
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Lenovo is dedicated to building the world's most innovative personal computers. Their business model is built on innovation, operational efficiency and customer satisfaction, with a focus on investment in emerging markets. With major research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China, and Raleigh, North Carolina, Lenovo is a global company with a local presence. They are creating a culture where people achieve their highest potential and deliver extraordinary results. No matter how large they grow, they will pursue innovative, creative people; relationships that are respectful; leaders who inspire, and meaningful work. Lenovo: - New world, new thinking.

AWARDS AND ACHIEVEMENTS WON BY LENOVO


Best of the best for highest design quality Award from the prestigious German Design Institute on Nov. 30, 2005. High Design Quality Award for 1800 adjustable display from prestigious German Design Institute on Nov. 30, 2005. International Business Week Design Award 2008. PC WORLD- a leading PC magazine ranked the Lenovo Desktop as-

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PERFORMANCE HIGHLIGHTS: 2009-10


The company expects to realize savings of approximately $300 million in the 2009/2010 fiscal year (ending March 31, 2010). The company had a pre-tax restructuring charge of approximately $150 million, most of which was taken in the fourth fiscal quarter (ending March 31, 2009). The Global crisis forces Lenovo to cut 11% of its workforce.

Lenovo XP 7 STYLE 2010 SATA is the most beautiful and modern Windows XP
like exactly Windows 7, it based on original copy of XP SP3 (Activated) include Windows Media Player 11, Internet Explorer 8 and SATA Drivers.

The system has been modified in a professional manner combined the high
performance and the wonderful appearance more beautiful from Window 7; you will feel that you already work in Windows 7. Lenovo XP 7 STYLE 2010 has more power because it has been updated completely with the latest updates and security hot fixes till November 2009 addition to the last version of DirectX. This makes it become very stable, fast and safe when the normal work or browsing of the internet will be faster and safe from hacker attacks, viruses, etc. When playing, the games will be speedy, stable and with high graphics. The system has full components; everything is staying (Services, Drivers, Languages ... etc.). Lenovo XP 7 STYLE 2010 SATA is fully compatible to work with any PC- Laptop or Desktop.

Windows Lenovo XP 7 STYLE 2010 (with SATA Support) [RE PACKED] | 651 MB

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RECOGNITIONS: EPEAT Gold Standards for Think Pads (Responsible for environment-friendly product). NYSE (New York Stock Exchange) enlisted company. Fortune-500 enlisted company. Green-guard certified (Air Quality Certification). Many Think station models are Energy Star 5.0 certified. EPEAT Silver Rated for Think Centre Models. NVIDIA Quadro FX MXM Certification for graphic solution. WUXGA certification for better resolution.

MAJOR PRODUCTS OF LENOVO:-

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CURRENT MANAGEMENT TEAM:-

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CLIENTS OF LENOVO:-

MICHAEL PORTERS FIVE FORCES MODEL:-

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Threat of New Entrants Wipro. Samsung. Chirag. Threat of Substitute Products Verbal communication. Hand written Communication. Type writer. Windows mobile. Suppliers Intel (Micro-processor) Microsoft (OS) Buyers Big Corporates Government Offices Educational Institutes BPOs Individual Customers Competitive Rivalries HCL HP Compaq Dell Acer Toshiba Zenith Sahara LG Video recording. Telephone. Conferencing machine. Camera. Sound Systems.

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TOWS MATRIX ANALYSIS;Strengths


1. 2. 3. 4. Growing market share Direct sales approach Build to Order approach Long term partnerships with reputable suppliers of name-brand parts and components Reputation/image of IBM Lenovo Exchange JIT, know-how and capabilities Contracts with local service providers to handle customer requests for repairs Environmental policy 1.

Weaknesses
Lacks the product line and service breadth of Hewlett Packard and Dell The direct sales approach is not the preferred distribution channel in Europe No in-house repair service capabilities No in direct service, hence lacks customer contact

2.

5. 6. 7. 8. 9.

3. 4.

Opportunities
1. 2. 3. 4. 5. 6. 7. Customers value convenience and one stop shopping Customers know what they want and need to purchase Marketing on the Internet Need for replacement equipment from World Trade Center Attack US PC households with Internet access will increase 25% by 2002 Some rivals weak in PCs in all the worlds major markets Servers market can be tapped 1.

S-O Strategies
Conduct aggressive domestic / international advertising campaign. (S1, S2, S3, S5, O1, O2, O3, O5, O6, O7) 1.

W-O Strategies
Joint Venture with EMC to offer storage services. (W1, O1, O4, O6, O7) Open two Dell outlet stores in Europe (W2, W3, O6)

2.

Threats
1. 2. 3. 4. 5. 6. 7. Global economic recession Aggressive pricing wars Continuously changing consumer demands. Strong brand name of competitors (IBM, HP) Rapid technological advancement A long-term slow down in global sales of PCs and servers Corporate customers relying more and more heavily on the systems and service capabilities that IBM and HP provide 1.

S-T Strategies
Produce low price standardized PC. (T2, S1, S2, S4, S5, S7) Reduce workforce by 1700 employees to cut costs (T1, T2, S2, S3, S4, S7, T6) 1.

W-T Strategies
Conduct aggressive European ad campaign to promote Dell Direct Selling (W2, T3, T2)

2.

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SWOT ANALYSIS
In order to get a better sense for Lenovos outlook in terms of the corporate market and the impending loss of the IBM branding, it is helpful to analyze the companys strengths, weaknesses, opportunities and threats in terms of the problem. These key parameters are summarized here.

Strengths
Lenovos major strengths lie in its current brand image and market share. On the international scale, Lenovo ranks third in corporate sales behind Hewlett-Packard and Dell. It shows tremendous capability for improvement, however, due to its clearly superior reputation for high quality, high end products inherited from IBM. In addition, executives maintained from IBMs notebook division provide the valuable experience that a relatively new foreign player normally would not have in the corporate (especially US) market. Lenovo already has a strong base in China, with a 29% share of Chinas PC market. There is limited competition for existing IBM/Lenovo corporate customers, because of existing reputation and connections formed by transferred IBM staff. The historic brand image and continuing innovation in the high-end market makes products like the ThinkPad X300 a must-have for a CEO to show off and use. The strength here lies in the capability for creativity in producing a high-end product with all the bells and whistles necessary for a corporate executive. Lenovo provides a highly versatile notebook product line, in addition to its high-end ThinkPad. As a one-stop shop company, Lenovo shows promise its product lines covers mid to high end products, now supporting Linux products. In addition, in-house manufacturing specialization allows for lower marginal costs this leads to a more competitive position for a price war.

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Weaknesses
Since Lenovo is a new player in the international stage it has plenty of weaknesses in its outlook. In general, its team has less market knowledge than local experienced players in the US market like HP and Dell. Lenovo has just begun to develop its service team in the US it still manages to provide top of the line customer service, but the system is not optimized. Lenovos major weakness, however, is in the stigma associated with Chinese products and companies with a reputation for skimping on quality to achieve low costs. A customer in the states is likely to mistrust the Lenovo brand in favor of the more well known and trustworthy, American IBM logo. It is this weakness that Lenovo must overcome in the next year as the IBM branding has disappeared from its products.

Opportunities
With low marginal costs and a wide product spectrum, Lenovo has the opportunity to become an on stop powerhouse in the corporate market, providing high-end executive computers with the IBM ThinkPad line, and highquality, middle-spectrum computers for lower level employees on the corporate ladder. In addition, a developed electronics department allows Lenovo the opportunity for creating synergies between corporate add-ons like cell phones and Pocket PCs.

Threats
In general, the weakness of the US economy and the dropping value of the dollar might pose a threat to Lenovos growth. Rivalry between Lenovo and other companies in the corporate market like HP and Dell already pose a significant challenge, but Apple is showing a growing strength in the corporate market that must be addressed as Lenovo seeks to become the dominant international corporate player.

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STRATEGIC ANALYSIS: a) COMPETITORS STRATEGIES:Dell Inc.


In 2007, Dell had a $60 billion global business with a customer base and an installed base of more than 200 million units. Dells major strengths lie in its direct order business model and in its current power in the market; with close to $10 billion in cash and about $1 billion a quarter in cash flow Dell is a world-renowned brand and is currently the number one choice of enterprises around the world. These features are ideal for marketing low and middle spectrum computers to companies, a strategy that has resulted in Dells success. Dells weaknesses, however, also lie in this direct order business model. Customers have no physical sense for the product theyre buying, resulting in dissatisfaction with the often clunky, utilitarian look of new Dell products. It is this aspect that makes Dell attempt at high-end computers susceptible to the ThinkPad brand Dells computers lack both the reputation and quality (number of features and reliability) that IBMs ThinkPad came to epitomize. In recent years, Dell has attempted to capture the minds of IT professionals at corporations by providing services for data management, even though it seems to have been slow to react to demand.

Hewlett-Packard Co.
HPs major strengths in the notebook market lie in its overall size and power as a company. Its dominance in the printer market and general knowledge of marketing and sales in the IT market should give it an advantage in developing complements, brand images. Compared to other companies, however, HP has been noted as weak in marketing, distribution speed, and costs. HP attempts to provide the latest technology available by keeping inventory low and making large orders as they come as a result, their costs are higher on average than their competitors for production of similar quality products. HPs strategies in recent years have included the acquisition of struggling computer giant Compaq, making HP the largest consumer hardware company in the world. They have attempted to maintain and expand their market power by expanding into new markets (especially newly growing Asian markets) lobbying and working with other multinational corporations, NGOs, and governments to enhance their competitiveness both in the US and abroad, claiming in one of their pressreleases to be supporting free market economies.
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Recently, HP announced plans to expand its operations to cover retail and manufacturing in over six-hundred Chinese Cities. HPs most successful strategy in recent years has involved the interfacing of HP notebooks and computers with HP server systems through use of heavily marketed efficiency software that also is advertised to provide convenient tools for financial management and leadership. HP has also invested heavily in stylish ergonomics, following Apples cue.

Apple Computer Inc.


Apple is an established and healthy IT brand in the international market today, with a loyal set of enthusiastic customers who advocate their brand strongly. Apples strengths in the consumer market have begun to seep into the corporate world. Apple makes use of their favorable brand perception for style, safety, and ease of use. Apple has been intelligent about providing solid technical support on which Lenovos current system is modeled. Apples weaknesses in the corporate market lie in a reputation as a consumer product, filled with flashy multimedia applications that slow down the computer and are unnecessary for an executives business computer, and counterproductive for lower level staff. The Apple system is still not optimized for use with the Windows operating system and is thus not as easily used with the majority of applications published today. Most importantly, Apple has yet to penetrate the corporate market significantly. Current barriers to entry put up by Lenovo, HP and Dell may prevent Apple from taking a significant bite out of the current market.

b) RESPONSES AND COMPETITION FOR LENOVO:Product Differentiation: Wider Quality Spectrum


Lenovo has the opportunity to provide a broad spectrum of services to the corporate market. With a reasonably high-quality, low cost series of computers in the Lenovo 3000 line, Lenovo can attack the same niche in the corporate market that allows Dell more than 50% of the market share: providing not only high-end notebooks and computers for executives, but also mid-spectrum machines for non-executives; people who dont need to use the top of the line ThinkPad. In doing so, Lenovo has the potential to become a one-stop shop in the corporate market.

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At the same time, however, Lenovo needs to continue to focus on providing the most features in their high-end machines, ensuring that they maintain the reputation that the high-end ThinkPad series has built. An executive purchasing a computer is less likely to worry about a hundred dollar difference in prices than about the number of features a computer provides. Apples response to Lenovos top-end products seems to have been to provide a lower cost product on purpose (undercutting) but only by skimping on quality. The Mac book Air, for instance, is intentionally priced at $100 less than the similarly lightweight, but more feature-intensive ThinkPad X300. Since Lenovo target is the corporate, rather than individual consumers this should be to our benefit. A worst case scenario in response to this suggested attack of the midspectrum market results in a price war for this market. This is difficult to avoid by minimizing marginal costs, Lenovo can hope to win the price war and hurt its competitors in the process. Lenovos in-house manufacturing expertise will serve to give them the upper hand against a company like Dell in providing to the less-than-high-end corporate need. It is this advantage in marginal costs and the existence of Lenovos lower end 3000 line computers that makes this attack a wise choice. Complements to Compete with Apple and HP. HP and Apple have begun to demonstrate success in the marketing of complements in server interfacing technology and efficiency equipment, respectively, in the corporate market. It is likely, however, that if Lenovo were to partner with IBM to produce a complement with IBM server technology, both companies would stand to gain: while it is not in IBMs interest to make their servers solely compatible with Lenovo products, cooperation to optimize interfacing makes both products more desirable for customers. HP demonstrated that the software interfacing they introduced for their server systems increased productivity and popularity of their product in the corporate market. This same model, if applied to IBM-Lenovo cooperation, might result in both continued positive brand identification for Lenovo, and an increase in popularity for both products IBM already has a significant brand name for its server technology, on which Lenovo would likely be riding. While it is a much vaguer suggestion, Lenovo should also attempt to use their significant base as an electronics manufacturer and retailer to develop complements to their products that appeal to executives, modeling efforts after the ease with which Apples i-Phone interfaces with Apple computers. In both these instances, we must hope that Lenovos complement is more attractive or cheaper to executives than competing products otherwise, such attempts are likely to fail to a similar extent that HP and Dell attempts at products like PDAs have failed.

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c) CURRENTLY SUCCESSFUL STRATEGIES:-

Marketing
There are two main focuses for marketing to the corporate market, both seeking to address the major concerns of corporations in computer purchases: functionality and need for service. These are addressed through the relationship model and transaction model for marketing. The relationship model involves retaining customers with continuous innovative products and satisfying customer service by maintaining a solid customer base and providing them with consistent quality and support, Lenovo will build a reputation that will earn it more customers. IBM consistently did this in the past, so Lenovos first concern is maintaining the same standard of quality, innovation and service that IBM provided. The transaction model involves making new business deals by spreading to new potential markets. In this sense, Lenovo uses China as its base for expansion, capitalizing on the low cost of manufacturing as well as the fast-growing market which allows the company to create enough revenue to support development in markets around the world. While companies such as Dell and Hewlett-Packard are trying to penetrate the Chinese market, Lenovo is trying to break into the international market out of an established base in the wide Chinese market.

Management
Lenovos major move to provide proper organized and experienced, involved hiring a large number of IBMs former notebook executives in order to transfer the culture and structure of IBM in their company. Chairman Liu Chuanzhi is known for having a thorough approach to decision making. His management team studies other leading firms and reads foreign management journals. There is a strong commitment to learning and copying successful techniques within the company that should lead to a versatile company in future climates.

IBM Branding
Lenovo has made full use of the IBM name, barely associating itself with the IBM product until very recently. This may have set them up for failure once their rights to the IBM title expire at the end of this year and they lose their brand recognition, but while it was used, the IBM name helped Lenovo maintain its solid base with customers in the corporate market. Recently, Lenovo has emphasized the brands ThinkPad and Idea Pad, establishing these as the definition in high-end products, separating them from the IBM name as much as possible. Once Lenovo can no longer brand their product with the IBM name, they may depend instead on recognition of the ThinkPad and Idea Pad.
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Customer Awareness
Lenovo makes an effort to make sure that the Lenovo brand is well known and trusted as it continues to grow and produce computers in the international market on their own name. Co-branding, where two companies work together to create marketing synergy, can be used to great effect here Lenovos sponsorship of the Winter Olympics in Turin and the Summer Olympics in Beijing have served to continue to establish the Lenovo name as one that is trusted in general, just as the IBM name was.

FINANCIAL POSITION (2009-2010):EPS-EBIT Analysis


Amount Needed: $1,000 Stock Price $23 EBIT Range $2000 to $3000 Tax Rate 485/1731 = 28%

Interest Rate 5%
Shares Outstanding 2,600 Common Stock Financing High Low
EBIT ($1,789 in 2001) Interest (5%) EBT Taxes 28% EAT Shares Outstanding EPS $3000 0 3000 840 2160 2643 .817 $2000 0 2000 560 1440 2643 .545

Debt Financing High Low


$3000 50 2950 826 2124 2600 .816 $2000 50 1950 546 1404 2600 .540

LENOVO Computers Valuation Ratios


P/E Ratio (TTM) P/E High - Last 5 Yrs P/E Low - Last 5 Yrs Beta 49.65 105.71 21.29 2.04

Industry

Sector

S and P 500

29.93 44.40 17.78 1.60

37.84 66.10 19.59 1.76

25.25 49.79 17.38 1.00

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Price to Sales (TTM) Price to Book (MRQ) Price to Tangible Book (MRQ) Price to Cash Flow (TTM) Price to Free Cash Flow (TTM) % Owned Institutions

1.95 13.08 13.07 41.59 49.65 105.71

1.40 6.12 6.36 18.93 29.93 44.40

4.05 3.92 4.98 25.27 37.84 66.10

2.67 4.19 6.59 17.38 25.25 49.79

Dividends
Dividend Yield Dividend Yield - 5 Yr Avg Dividend 5 Yr Growth Rate Payout Ratio (TTM) 0.00 0.00 NM 0.00 1.30 0.42 6.77 18.90 1.03 0.24 6.24 9.42 2.28 1.36 7.92 29.67

Growth Rates %
Sales (MRQ) vs Qtr 1 Yr Ago Sales (TTM) vs TTM 1 Yr Ago Sales - 5 Yr Growth Rate EPS (MRQ) vs Qtr 1 Yr Ago EPS (TTM) vs TTM 1 Yr Ago EPS - 5 Yr Growth Rate Capital Spending - 5 Yr Growth Rate -8.97 -12.17 3.32 577.78 -60.15 -23.41 -7.05 -6.99 -10.05 10.78 -50.05 -39.87 8.18 -0.70 -2.04 -4.63 20.73 -2.90 -23.06 9.94 13.35 0.81 1.66 11.89 10.50 0.51 8.46 9.96

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Financial Strength
Quick Ratio (MRQ) Current Ratio (MRQ) LT Debt to Equity (MRQ) Total Debt to Equity (MRQ) Interest Coverage (TTM) 0.85 1.06 0.12 0.12 NM 1.03 1.39 0.45 0.64 36.19 2.37 2.91 0.26 0.35 11.26 1.12 1.65 0.68 1.04 9.36

Profitability Ratios % Gross Margin (TTM) Gross Margin - 5 Yr Avg. EBITD Margin (TTM) EBITD - 5 Yr Avg Operating Margin (TTM) Operating Margin 5 Yr Avg Pre-Tax Margin (TTM) Pre-Tax Margin - 5 Yr Avg Net Profit Margin (TTM) Net Profit Margin 5 Yr Avg Effective Tax Rate (TTM) Effective Tax Rate 5 Yr Avg

17.47 20.62 6.46 9.64 5.74 8.99 5.52 9.56 3.98 6.65 27.97 30.20

30.01 31.72 9.65 13.11 6.05 9.13 7.29 10.18 4.28 7.01 28.17 29.81

48.52 51.88 15.28 21.95 9.65 16.02 10.89 19.06 5.54 11.76 30.95 34.06

46.90 48.17 20.02 21.84 17.19 18.11 14.62 17.04 9.62 11.20 33.25 35.69

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OBJECTIVE OF THE PROJECT


To study the feasibility of Notebooks against Desktops

RESEARCH LAYOUT
Information Source

Information Need

Behavioral Model Other Requirements

Data Collection

Questionnaire Design

Evaluation

Completion

Correction
Designing

Analysis
Project Flow Diagram

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RESEARCH DESIGN
The research design is the master plan specifying the methods and procedures for collecting and analyzing the needed information.

TYPES OF RESEARCH DESIGN


Three categories of research design Exploratory Descriptive Causal

Exploratory Research Design


Exploratory research is most commonly unstructured, informal research that is undertaken to gain background information about the general nature of the research problem. This research conducted when the researcher does not know much about the problem and needs additional information or desires new or more recent information.

Descriptive Research Design


Descriptive research is undertaken to provide answers to the questions of who, what, where, when and how, but not why. Two basic classifications of this research are Cross-Sectional Studies- It measures units from a sample of the population at only one point in time. Sample surveys are cross-sectional studies whose samples are drawn in such a way as to be representative of a specific population. Longitudinal Studies- It repeatedly draws sample units of a population over time. Longitudinal data used for market-tracking, brand-switching, attitude and image checking, etc.

Causal Research Design


Causal is thought of as understanding a phenomenon in terms of conditional statements of the form, if x then y; basically, causal research design measures cause and effect between two or more products or things.

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DATA COLLECTION METHOD


In the survey we have used following data collection methods

Secondary data AnalysisSecondary data are those that have been collected for some other purpose, as from our library, internet, journals and magazines etc. Secondary data includes both internal and external data. Internal secondary data consists of such information as data generated in-house as well as analysis of customer files, such as past customer transactions, letters from customers, sells call reports. In research we have collected internal data from LENOVO INDIA PVT. LTD. GURGAON and Several service centers of LENOVO. External secondary data consists of any data collected by an outside organization. An excellent way to access selected parts of these data is through websites, magazines, and blogs. We collected these kinds of data from www.acnielson.com, www.lenovo.com, www.wikipedia.com, Forbes, Harvard Business Review, etc.

Primary data AnalysisPrimary data refers to information gathered by the researcher specifically for the research project at hand. In primary data analysis, we use three techniquesQuantitative research DesignsA quantitative research study consists of a research design, the data collection methods and instruments to be used, and the sample design. Four basic designs are used in quantitative research, viz. Observation methods, Mechanical methods, Experimentation methods, and Surveys Methods. In research project we have used Surveys Methods. Survey methods means a researcher wishes to ask consumers about their purchase preferences and consumption experiences. The researcher takes personal interviews, telephone surveys, online surveys and mail surveys.

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In research we have used these surveys Personal interview surveys- Colleges, Malls, Retail shops, corporate, students, etc. Telephone surveys Online surveys conducted by sending questionnaire to different respondents. Quantitative data collection instruments include Questionnaires, Personal interviews and E-mails. We have used prominently questionnaire instrument in quantitative methods. Qualitative research Designs The key data collection techniques for qualitative data collection methods are Depth interviews, Focus groups discussion guides, Projective techniques and Metaphor analysis.

In this research, we have used the following methods Structured interview (direct to customer), and Customers personal opinions about notebooks/desktops. Customer satisfaction measurement Customer satisfaction surveys measure how satisfied the customers are with relevant attributes of the product or service and the relative importance of these attributes. In our survey, we have used the following customer satisfaction methods through questionnaire How much customers are satisfied with quality of Lenovos products? What change is required in the Notebooks and Desktops? What are the preferable choices of customers?

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NEED FOR INFORMATION


To know about the feasibility of the Notebooks against Desktops, we had to collect the information from various sources at various places and we had to make sure that every segment of the computer users, be it the educational institutes or the corporate, or malls, or even individual customers, must be reached so that we can analyze the behavioral pattern of the consumer in a better way. To know the consumers desire, we had to know about their budget and conduct their respective demographic segmentation. As we all know that educational institutes are more valuable (customers) as far as Notebooks are concerned because they need it every year in bulk, so we have given more attention on these educational institutes, basically B-Schools. While on one hand B-Schools prefer Notebooks as a means of education, on the other BPOs concentrate on Desktops to carry out their business. So, our next target was to conduct our surveys in these BPOs. We were interested to know the following things What do they prefer- Desktop or Notebook? Why do they prefer this? Satisfaction level with their computer. What else do they look for? Their budget. Post purchase behavior (Dissonance, if any). Potential customers. Brand priority in customers point of view. Market share of LENOVO.

SOURCES OF INFORMATION
In order to receive the required information, we extracted the data from the following sources1. 2. 3. 4. B- Schools in Delhi-NCR, BPOs at Gurgaon, Malls in Delhi NCR, and From students.
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To know the exact and relevant data we conducted our research at various places, few of them are enlisted below1. Reckitt Benckiser, 2. Agilis International, 3. Saubhagya Media Pvt. Ltd., 4. ITS, Ghaziabad, 5. NDIM, Tughlakhabad, New Delhi, 6. Centner Institute of Management and Communication, Noida, 7. Jamiya Miliya Islamiya Univesity, New Delhi, 8. Sparsh India Ltd. Udyog Vihar III, Gurgaon, 9. Genpact, Gurgaon, 10.Ansal Plaza, Greater Noida, 11.GIP, Sector 18, Noida, 12.TDI Mall, Rajouri Garden, New Delhi, etc.

SAMPLE PLAN AND SAMPLE SIZE


For our project, we decided to prepare a questionnaire which will cover all important parts of the survey to know the feasibility of the Notebooks against the Desktops. We also decided to choose our respondents from different colleges of different areas, BPOs and malls (as they are bulk purchasers) and finally, in order to know the individual customers response, we approached the college students as well. We had taken the response of at least 100 respondents, so our project sample size is 100 and we analyzed all things on the basis of those 100 responses. Sample distribution was as under: Educational Institutions Individual users BPOs Malls = 30 samples = 30 samples = 30 samples = 10 samples

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RESEARCH METHODS
Field work
We visited across the Delhi NCR in various colleges, malls, corporate etc. It was a very great experience to visit all those places. At some of those places, we were warmly welcomed, but at some other places we were treated very rudely.

Probing
Probing the respondents was a great experience, though we met 100s of respondents but to meet and to probe the Lab-in-charge of ITS, Greater Noida was really a very good experience as she was responding very gently.

Recording the response


As we were working as a team of two members, one of us was made responsible for interrogating the respondents while at the same time the other one used to pen down those responses.

RESEARCH INSTRUMENT

QUESTIONNAIRE
Dear Sir/Maam, We the management trainee at LENOVO INDIA PVT LTD. are conducting a survey to understand the current market trends in the field of Personal Computing as a part of our Business Research. The purpose of this activity is to know your desire better in order to serve you better. Kindly extent your cooperation by filling up this questionnaire and enable us to conduct the research successfully.

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Guidelines Question no. 1 is compulsory. Questionnaire has been divided into two sections (Section-A and Section-B). Section- A (Question no. 2 to 21) is for Notebook users. Section -B (Question no. 22 to 34) is for Desktop users. All questions are of multiple choices, in nature. Note Any information provided by you is assured to be kept fully confidential.

1.

You own Notebook Desktop Both None

FOR NOTEBOOK USERS:-

Which brand do you own? Lenovo HP Dell HCL Acer Zenith Compaq Any other (Please specify)____________________________

Which model do you possess?

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How many Notebooks you possess? (approx.) [ Only for Enterprise Customers] <50. 51-150. 151-250. 251-350. > 350.

Since how many years have you been using your particular brand? <5 years. 5 10 years. > 10 years.

Specify the reasons of owning a Notebook against a Desktop. Price/Price-performance ratio. Portability. Wireless Connectivity. Weight & Ergonomics. Green Computing. Thermal Efficiency. Noise control Technology. Ease of use and maintain. Security. Ruggedness & Reliability. Battery Backup. Compactness. Aesthetic features. Any Other (please specify)___________________________

How much distance (both ways) you use to cover with your Notebook in a day? <20 KMS. 20-40 KMS. 40-60 KMS. 60-80 KMS. >80 KMS.

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How much comfort do you feel while carrying your Notebook?

Is your organization facilitated with WLAN/LAN/INTERNET? Yes No If yes, which type of problem(s) you face the most? Connectivity problem. Switch problem. Driver problem. Any other, please specify_______________________________

10

What features would you like to add in your Notebook? Light -weight System. Whole day battery life (10-12 hrs). Ultra-thin model. Wide-screen Display. Outdoor Visibility. Lowest-in-class Reflectivity. Pen-proximity detection Technology. Advanced Security systems. State of the art communications and multimedia Technologies. Web-cam. Fashionable Carrying Cases. Attractive aesthetics. Any other, please specify___________________________________

11

What are the features that you feel of no use for you in your Notebook? I. ________________________________ II. ________________________________ III. ________________________________

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12

Do you face any kind of health related problem(s) with your Notebook? Yes. No. If yes, which problem affects you the most? Vision problem. Stress. Backache. Any other, please specify___________________________________

13

How many hours do you work on your notebook in a day? <3 hrs 3-6 hrs 6-9 hrs >9 hrs

14

Which mode of maintenance you opt for your desktop? AMC (Annual Maintenance Contract). By self. Enjoying on call facility. Any other, please specify___________________________________

15

What is the average time period of service assistance you require for your Notebook? <6 months. 6-12 months. 1-2 years. >2 years.

16

How much are you satisfied by the services provided at our service centers? Satisfied ____ ____ ____ ____ ____ Unsatisfied.

(Please tick mark at the appropriate place of your choice)

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17

What are the security features in your Notebook? One key rescue system for easy data recovery and back up. Face recognition technology for convenient login. Connectivity switch. Fingerprint Reader. Active Protection System. Chassis Intrusion Switch. PC Tracker. Trusted Platform Module (Data Encryption). Disable/enable capability of USB Ports. Pre-boot Authentication. Any other, please specify_____________________________.

18

What is the overall satisfaction level with your Notebook? High 1 Low 7

(Please tick mark at the appropriate place of your choice)

19

Your expectation(s) from the notebook?

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20

Please tick your choice of preference on the basis of aesthetics (looks)?

21

Which feature(s) attracts you the most among the following: Ultra-thin (19mm X 337mm X 241mm). Ultra-light weight (2-2.5 pounds). 1800 Flexibility. Choice of Color. Any other, please specify_____________________________________

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FOR DESKTOP USERS:-

22

Which brand you own? Lenovo. Acer. Samsung. LG. HCL. Compaq. Any other (Please specify)_______________________________

23

Which model do you use?

24

How many Desktops you possess? (Approx) [Only for Enterprise Customers] <50. 51-150. 151-250. 251-350. > 350.

25

Since how many years have you been using your particular brand? <5 years. 5 10 years. > 10 years.

26

Specify the reasons of owning a Notebook against a Desktop? Price. Durability. Maintainability. Reliability. Ease of use. Security. Performance. Easy to upgrade. Fast processing speed. Any Other (please specify)_________________________________
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27

What is the level of ease in maintaining your desktop? Very easily maintainable. Easily maintainable. Maintainable. Difficult to maintain. Very difficult to maintain.

28

Which mode of maintenance you opt for your desktop? AMC (Annual Maintenance Contract). By self. Enjoying on call facility. Any other, please specify_______________________________

29

What is the average time period of service assistance you require for your desktop? Less than 6 months. 6-12 months. 1-2 years. More than 2 years.

30

What specific facility in your desktop compels you to preferably work on it? Wide screen. Ease with typing. Separate mouse. Expandable hard disk. Expandable RAM. Multi-processor capability. Fast processing speed. Any other, please specify________________________________

31

What are the securities features in your Desktop? I. ________________________________ II. ________________________________ III. ________________________________

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32

What is the overall satisfaction level with your Desktop? High Low 1 2 3 4 5 (Please tick mark at the appropriate place of your choice)

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Your expectation(s) from the Desktop?

34

Please tick your choice of preference on the basis of aesthetics (looks)?

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Something about You


Name of the Respondent Organizations Name : : Mr. /Ms ______________________________ _____________________________________ _____________________________________ Designation : _____________________________________

Address

Contact Details

Ph M Fax

E-mail

_____________________________________

Respondents Signature

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OBSERVATION
Machine (Notebook/Desktop) model no. No. of computers. Satisfaction level (during conversation). Scope for future demand (by knowing the batch strength in B schools, employees strength in BPOs, footfalls in Malls, etc.)

E- Mail In order to get the responses, we used to make email communications to some of our colleagues and friends and thus got the desired responses. Interview We made a direct approach to various individuals in malls, IT/admin professionals at various B- schools and respective concerned persons at several BPOs in the NCR region.

DATA ANALYSIS

55

56

57

58

59

60

RESPONSES OF QUESTIONNAIRE
What do you own?

Response
None 3%

Both 34%

Notebook 22%

Desktop 41%

FOR NOTEBOOK USERS


Which brand you own?

Response

OTHERS 17% COMPAQ 15% ZENITH 6% ACER 7%

LENOVO 19% HP 12% DELL 14%

HCL 10%

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How many Notebooks you possess? (Approx)

Response
>350 11% 251-350 15% 151-250 8% 51 - 150 16%

< 50 50%

Specify the reasons of owning a Notebook against a Desktop?

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What features would you like to add in your Notebook?


Advanced Security systems 3%

Response
Light -weight System 10%

Any other 9% Attractive aesthetics 8%

Whole day battery life (10-12 hrs) 13%

Fashionable Carrying Cases 10%

Ultra-thin mode 10%

Web-cam 10%

Wide-screen Display 6%

State of the art communications Pen-proximity and multimedia detection Technology Technologies 5% 7%

Lowest-in-class Outdoor Visibility 4% Reflectivity 5%

Do you face any kind of health related problem(s) with your Notebook?

Response
Yes 14%

No 86%

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Is there any major health problem(s) faced by you?

Response

Any other 13% Backache 13% Vision problem 33%

Stress 41%

How many hours do you work on your notebook in a day?

Response
<3 h 2% >9 hrs 18%

3-6 hrs 22%

6-9 hrs 58%

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How much are you satisfied by the services provided at our service centers?

Response
1 1% 5 6% 2 31%

4 26%

3 36%

What is the mode of maintenance you opt for your computer?

Response

Any other 6% Enjoying on call facility 10%

By self 24%

AMC (Annual Maintenance Contract) 60%

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What are the security features in your Notebook?

Response
Pre-boot Authentication 5%

Any other 8%

One key rescue system for easy data recovery and back up 11%

Face recognition technology for convenient login 4%

Disable/enable capability of USB Ports 22%

Connectivity switch 10%


Fingerprint Reader 2% Active Protection System 8% Chassis Intrusion Switch 3% PC Tracker. 4%

Trusted Platform Module (Data Encryption) 23%

What is the overall satisfaction level with your Notebook?

Response
1 5 1%6% 2 31%

4 26%

3 36%

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Most popular model for Notebook?

Series 1
m10 m9 m8

m7
m6 m5 m4 m3 m2 Series 1

m1
0 5 10 15 20 25

Which feature(s) attracts the most?

Response
Any other 8% Ultra-thin (19mm X 337mm X Choice of Color 241mm) 20% 25%

1800 Flexibility 15%

Ultra-light weight (2-2.5 pounds) 32%

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FOR DESKTOP USERS


Which brand do you own?

Response
COMPAQ OTHERS 9% 4% LENOVO 8%

ACER 12% samsung 10%

HCL 43%

LG 14%

Specify the reasons of owning a Desktop against a Notebook?

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What is the mode of maintenance you opt for your computer?

Response
Enjoying on call facility 0%
AMC (Annual Maintenance Contract) 100%

Any other 0%

By self 0%

What specific facility in your desktop compels you to preferably work on it?

Response
Wide screen 16% Any other 19%

Fast processing speed 14%

Ease with typing 14%

Separate mouse 7% Multi-processor capability 14% Expandable RAM 8% Expandable hard disk 8%

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What is the overall satisfaction level with your Notebook?

Response
4 0% 3 20%
1 12% 5 0%

2 68%

Most popular model for Notebook?

Series 1
dm6

dm5

dm4

dm3

Series 1

dm2

dm1 0 5 10 15 20 25

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CONCLUSION
With the help of this project, we reached at the result that for certain features notebooks are feasible against desktops, while for others, the vice versa. As far as individual buyers and B-schools are concerned, notebooks are the first choice; but when it comes to offices, corporate, malls, etc.; desktops are preferred first. During our survey, we found that the market penetration of LENOVO is quit low as compared to its competitors like HCL and HP.

ALTERNATIVE SUGGESTIONS FOR LENOVO INDIA PVT LTD


Some value engineering is required, like some of our respondents came up with an idea of having FM with laptops. The brand image of LENOVO is quiet low; and some steps like advertisement, promotional schemes, etc. are required to create the same.

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RECOMMENDATIONS FOR LENOVO INDIA PVT LTD


Though THINKPAD is one of the best products of his segment, yet other models are needed to be taken care of. Positioning in Desktop is required. In the contemporary world of hyper-competitive era, one cannot survive without brand visibility and brand positioning. During our research, we found many respondents who were not even aware of this brand, LENOVO. Hence, some major steps in this regard, are needed to be taken. It provides some black blonde models only, which is not acceptable in the current market of youngsters; so, some thing is required to take care of if it comes to market trends and aesthetic beauty. LENOVO still focuses mainly on enterprise customers; but, to grab the attention of the bottom of the pyramid, whish comprises more than 97% of the prospects (potential customers), it needs to diversify itself horizontally.

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Marketing Management by Kotler & Keller Strategic Management by Pearson Marketing Research by Malhotra and Das LENOVO Sales Kit Economic survey 2009 - 2010

www.lenovo.com www.wikipedia.com www.investor.stockpoint.com

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