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LENOVO AND IBM

An strategic alliance is an agreement for cooperation


among two or more independent firms to work
together toward common objectives.
It is a collaboration with aim of synergy where each
partner hopes for greater benefit than as individual
efforts.
When firms of different company alliance together it
is called international strategic alliance.

Enables to gain competitive advantage in new


economy

Grow and expand more quickly and efficiently

Learning from partners and developing competencies


that may be more widely exploited elsewhere

To get benefits from established channels of


distribution , marketing, brand reputation etc

ALLIANCE BETWEEN
LENOVO AND IBM

Lenovo
Group
Limited
is
a
Chinese multinational technology firm with
headquarters in Beijing, China
It sells personal computers, tablet computers,
Smartphones, workstations, servers, electronic
storage devices, IT management software and smart
televisions
Lenovo has operations in more than 60 countries and
sells its products in around 160 countries and has
now become the 3rd pc provider in the world.

IBM is an
American multinational technology and consulting c
orporation
headquarter in New York, United States
manufactures and markets
computer hardware and software, and
offers infrastructure, hosting and consulting
services in areas ranging from mainframe
computers to nanotechnology

ALLIANCE: December 8th, 2004


VISSION: to develop and deliver industry specific,
integrated technology solutions for enterprises, small
and mid-market businesses and individuals
AGREEMENT: The agreement aligns Lenovo's
expertise in building the best engineered personal
computers with IBM's extensive IT services and
technology capabilities

To deliver end-to-end technology solutions that meet


the business needs of clients in industries such as
healthcare, financial services, education, retail and
government

Lenovo had little business outside the country

The increasing fierce competition from aggressive


foreign rivals such as Dell and HP

Both the companies was financial problems

Shares of the Lenovo dropped nearly 60 per cent in


the year 2004

Lenovo intended to expand its business globally

Lenovo needs a well-developed worldwide


distribution network

IBMs presence in the worlds fastest growing IT


market

China is a tough nut to crack especially for outsiders

FINANCIAL ASPECTS-the pressure from the


market leader Hewlett-Packard and Dell and low
confidence of the shareholders
BRANDING-Lenovo name is almost unknown
outside of China, it is hard for marketers to build an
international brand from scratch
CULTURAL CLASHES- The differences can be
caused from the different corporate cultures or
national cultures.