That being said they do have high-end products in their portfolio, but it is not their focus. These are the major advantages and disadvantages of different branding strategies that have been identified. Though this alternative is risky, it is worthy because of the ultimate good image it would create for all the brands on offer at a global scale. Normally, brand knowledge determines the directions that the brand takes and, in turn, this influences the decision that marketers take in creating a brand promise, which entails informing the public about the positive essence of the brand and its purpose Kotler, 2012, p. As a new multinational with 20,000 employees operating in 138 countries, Lenovo needed a global marketing and branding strategy to extend its global reach. House of Brands Strategy 3. These problems are mainly because of the fact that Lenovo is mainly a Chinese brand and it is often associated with features such as lower on quality.
For example you can recommend a low cost strategy but the company core competency is design differentiation. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Clearly, ruining of the ThinkPad brand will certainly end up undoing the entry of Lenovo into the global market. In 1989, Lenovo Group Company set up in Beijing. This would destroy the ThinkPad franchise. Most Downloaded Sample of Management. As of June 2011, Yang owned an 8 per cent stake in Lenovo.
Lenovo sold standard products Quelch and Knoop 10 similar to Dell. Therefore, Lenovo has a daunting task to create brand equity to thrive at a global scale. He was referring to each device currently being smart. Brand knowledge consists of brand awareness and brand image Wright et al. Please place the order on the website to order your own originally done case solution. In the 1980s, when market reforms were in progress, the Chinese government hired Liu Chuanzhi to distribute imported computers.
Brand Management, London: Sage Doyle, P. There are four important positions such as cash cows, dogs, star and question mark. Kapferer, Jean-Noel 2008 The new strategic brand management. To gauge the conditions in this market environment, the company engages in extensive marketing research. Headquarters are in Los Angeles. Lenovo bases its communication on the same values everywhere - durability, reliability, professionalism and very good value. Lenovo does all the operations from the cargo to the assembly production, from the product-sells to the post-sale service.
The company actually chooses to use this strategy with great level of ingenuity. However the intense in economic growth also increased domestic competitions which lead Legend to consider more on growing global opportunity. Further, prior to acquisition, the focus was highly localised and the company has concentrated all its resources in targeting Chinese markets. The company, formerly known as Legend, makes a variety of products for worldwide sale such as desktops, laptops, servers, handheld computers, imaging equipment, and mobile phone handsets. The company also long established very efficient distribution and marketing functions. Lenovo first original product was the Legend Chinese-character card in 1987, which translated English-language operating systems into Chinese.
In addition, after market was opened to competition, this third- largest global personal computer manufacturer felt heat from foreign firms and the government started to purchase computers from Dell and other foreign competitors. Primary activities: Inbound Logistics; Operation; Outbound Logistics; Marketing and Sales; Service. Their first significant effort to import televisions was failed. In 2004, over 90% of Lenovo's revenues came from China, but with this major deal, Lenovo aimed to become a global technology giant. The focus of the company should be on long-term holistic performance of its products.
The offer, which shut from the 3rd quarter of the exact same yr, was the main through which a Chinese corporation acquired a nicely-known German enterprise. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information. Initially, Lenovo was known as Legend and it has concentrated its focus only on the Chinese industry. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. In opposition to what it does in the collectivist societies, Lenovo presents its products explaining that they are the best and you are going to have a competitive advantage if you use them.
It strengthened Lenovo as the master brand while also building up a separate ThinkPad product brand. These changes caused to certain disadvantages for Lenovo. This strategy would place all marketing attention on Lenovo as the main brand, leaving no resources to market ThinkPad. Second, the house of brands approach can enable the firm to establish many brands at once, but it is expensive to market the different brands. Towards 2004 50% of computers around the globe was sold by 5 major vendors — Dell — 17. Lenovo achieves a number of benefits for internationalization from the acquisition.