Upload
urr
View
222
Download
0
Embed Size (px)
Citation preview
7/28/2019 Lenovo Dell
1/32
LenovoLenovo: Countering the Dell Challenge: Countering the Dell Challenge
The battle is on between the WESTERN and EASTERN
VS
7/28/2019 Lenovo Dell
2/32
Developed By:
Md. Forhad HossainMehdad Mamur MannanHimadri Sheakar HoreMd. Mahfuzur Rahman
7/28/2019 Lenovo Dell
3/32
Presentation Proposition
Case at a Glance The Global PC Market Scenario
Focusing Chinese PC Realm
The Fate of Lenovos Business Model???
Business Model: Lenovo Business Model: Dell
Lenovos March in Local Market
Lenovos Emerge in Global Arena
Recommendation Implementations of Recommendation
Index
7/28/2019 Lenovo Dell
4/32
Case at a Glance
7/28/2019 Lenovo Dell
5/32
Case at a Glance
Case at a glance
Global PC market
scenario
Focusing Chinese
PC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
Challenge
DELL
Lenovo
PC Market
Since the 90s, the global PC market isflourishing in a tremendous pace. Mainlythis boom is taking place in US, Europe
and of course in Asia.
Lenovo, an expert player especially in Chinese
PC Market and also looking for global
expansionDell, another US based giant is doing
exceedingly well in the same line. Afterwinning the global share of PC market now
they are staring at Chinese domain.
Since Lenovo excels in Chinese market witha vision to be a global player, they now
have the challenge to outperform their UScounterpart.
Business Model:
Dell
7/28/2019 Lenovo Dell
6/32
Global PC Market Scenario
7/28/2019 Lenovo Dell
7/32
Global PC Market Scenario
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
PC Market
Desktop Notebook PC Server
Growth Driving Factors
Lower price
Replacing ageing system
Recovery of European economics
Business Model:
Dell
7/28/2019 Lenovo Dell
8/32
Global PC Market Scenario
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
Fast Market
Growth
Chinese
Indian
CEMA
European
USThai
Japanese
Sluggish
Market Growth
Business Model:
Dell
7/28/2019 Lenovo Dell
9/32
Global PC Market Scenario
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
16.50%
14.30%
5.90%
3.50%
3%
56.70%
Dell
HP
IBM
Fujitsu
Acer
Others
Position of top Global Brands in 2004:
Business Model:
Dell
7/28/2019 Lenovo Dell
10/32
Focusing Chinese PC Realm
7/28/2019 Lenovo Dell
11/32
Focusing Chinese PC Realm
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
A Massive Boom in PC Market
0
100000
200000
300000
400000
500000
600000
700000
1999 2000
Year
Sales
In 2010 the Chinese PC market Is about to exceedthe US PC market
Business Model:
Dell
7/28/2019 Lenovo Dell
12/32
Focusing Chinese PC Realm
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
A Massive Boom in PC Market
Units (000)
0
5000
10000
15000
20000
25000
30000
2002 2003 2004 2005 2006 2007
year
Major contributors towards
the growth:
Domestic PC makersForeign multinationals
Contract manufacturers
Business Model:
Dell
7/28/2019 Lenovo Dell
13/32
Focusing Chinese PC Realm
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
Chinese Govt.s Policies
Towards PC Market
Encouraging domestic computer production and use
Intention to achieve technological independence Use of R & D as a tool of computers market expansion Imposing high tariffs and taxes for the foreign companies Providing technology & know how to the local companies
Business Model:
Dell
7/28/2019 Lenovo Dell
14/32
Focusing Chinese PC Realm
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
Distribution channel of
Chinese PC market
Conventional distribution channel
Dealer Distributor Retailer
Direct model
Producer Customers
Business Model:
Dell
7/28/2019 Lenovo Dell
15/32
Fate of Lenovos Business Model ???
7/28/2019 Lenovo Dell
16/32
Business Model: LenovoSWOT Analysis
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Business Model:Dell
Lenovos March in
Local market
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Integration capabilities Inexpensive Easy to useTechnical sophistication Strategic allianceAcquisition & Merger Strong brand equity Customization Innovative marketing strategy Product DiversificationA Meaningful Brand Name
Too much dependence on
middle men
Too much focus on end users
Doesnt excel in inventorymanagement
Outperformed by the
challenger in advertisement
Yet to expand the Laptopunit
Internet fever among theChinese Dells shift to corporate
segment Ever expending Chinese
and Global market
Extensive Govt. support
Rapid growth of smallerfirms
Tong Fangs low cost PCs Low priced PCs by
Cloners Random access of foreign Companies in china Invaded corporate and
consumer market High advertisement by
foreign Competitors Being non responsive for
quite a long time
7/28/2019 Lenovo Dell
17/32
Business Model: Lenovo
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:Dell
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
Financial Performance
Turnover ratio :Total sales
Value of assets
In case of Lenovo it is 77%
which is quite goodBusiness Model:Lenovo
Breakdown of Turnover
House hold
Device
11%
Consumer IT
35%
Corporate IT
51%
Other
3%
7/28/2019 Lenovo Dell
18/32
Business Model: Lenovo
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
Financial Performance
0% 50% 100% 150% 200% 250%
Home PC
Cmmercial PC
Notebook
computer
Unit shipment in percentage
Business Model:Dell
7/28/2019 Lenovo Dell
19/32
Business Model: Lenovo
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
Financial Performance
Business Model:Dell
4.20% 4.40% 4.60% 4.80% 5.00%
Margin in Ratio
2004
2005
2006
Year
Net Profit Margin
0.00% 5.00% 10.00% 15.00%
Margin in Ratio
2004
2005
2006
Year
Gross Profit Margin
7/28/2019 Lenovo Dell
20/32
Lenovos March in Local MarketCase at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
Legend permitted manufacturing in mainland china1990
Developed pc on Intel 80826 microprocessors1989
Hong Kong legend established
Distributing foreign brand computer
Distributing peripherals for beginning legend
Designing and manufacturing motherboard
System integration products and services
1988
Awarded and honored1988
Manufacturing of legend Chinese insertion cardInexpensive & easy to use
1985
Distribution of imported pc such as IBM & HP printer1984
ActivitiesYear
Business Model:
Dell
7/28/2019 Lenovo Dell
21/32
Lenovos March in Local MarketCase at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
Developing and offering customized products
Strategic alliances
MOU with IBM
System integration capabilities
1998
Three dimensions
1. Distribution of imported computers
2. Manufacturing and sale of legend brand PC
3. Provision of system integration
1997
Legend brand equity reached RMB 3.574 billion
Entitled one of the top ten most Chinese brand
1996
TV coverage for imaging nationalism1995
Legend ranked third in the china pc market
Top selling domestic pc brand
Second generation of legend pc brand
1994
Setting R & D sector1993
MOU between china and US
Stropping producing and creating ventures
1992
Business Model:Dell
7/28/2019 Lenovo Dell
22/32
Lenovos Emerge in Global Arena
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
First introducer of dual - core ThinkPad network PC
Acquisition of IBMs PC division2006
Introducing Research Triangle Park
Introduces first wide screen Thinkpad
Introduces industrys thinest and lightest, most secure tablet PC
2005
Lenovo becomes Olympic worldwide partner
Lenovo and IBM announce an agreement, Lenovo will acquire IBMsPersonal Computing Division
2004
Birth of its new Lenovo logo
Data protection in case of system drop
2003
Introduces its visionary concepts
First automatic data recovery technology
2002
First introduces Digital Home concepts2001
Legend ranked in top 10 of worlds best managed PC vendors2000
Business Model:Dell
7/28/2019 Lenovo Dell
23/32
Business Model: Lenovo
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
ImplementingRecommendation
Index
Lenovos March in
Local market
Lenovos Future Plan
Inventory
Management
Alternative
Promotional
Schemes
Intensive
Target Market
Corporate
Selling
Direct Selling
Via Internet
Future
Plan
Business Model:Dell
7/28/2019 Lenovo Dell
24/32
Business Model of DELL
7/28/2019 Lenovo Dell
25/32
Business Model: Dell
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Lenovos Emergein Global Arena
Recommendation
Implementing
Recommendation
Index
Lenovos March in
Local market
Dells Business Method
Operation Efficiency Through Internet
Direct Sales
JIT Inventory Management
Extensive Customer Care
Different paying options for Customers Pricing Lower (Smart PC)
Customization
If Lenovo can not take adequate measures against its challenger,
it might be Dell to reap the competitive market of China.
Business Model:Dell
Business Model:
Lenovo
7/28/2019 Lenovo Dell
26/32
Business Model: Lenovo
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
Implementing
Recommendation
Index
Lenovos March in
Local market
Survival of Lenovos Business model
Lenovos business model might survive.
BUT???
Business Model:Dell
7/28/2019 Lenovo Dell
27/32
Recommendation
7/28/2019 Lenovo Dell
28/32
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:Dell
Lenovos Emergein Global Arena
Recommendation
Implementing
Recommendation
Index
Lenovos March in
Local market
Recommendation Pyramid
Recommendation
For Local Market
For International Market
Business Model:
Lenovo
7/28/2019 Lenovo Dell
29/32
Case at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
Implementing
Recommendation
Index
Lenovos March in
Local market
Local Market
Outperforming Smaller Firms
Being More Cheap
Monitoring the Cloners
Restricting Foreign CompaniesAdding Values
Intensive Distribution
Paying Attention to Laptop Unit Utilizing the Chinese Internet Fever
Closely Monitoring the Challenger
Being expert both in Corporate & Consumer Marke
Recommendation
Business Model:Dell
7/28/2019 Lenovo Dell
30/32
RecommendationCase at a glance
Global PC market
scenario
Focusing ChinesePC Realm
Business Model:
Lenovo
Lenovos Emergein Global Arena
Recommendation
Implementing
Recommendation
Index
Lenovos March in
Local market
International Market
In this case Lenovo has to take decision in TWO aspects :
Its Product Types
Its Distribution Network
Business Model:Dell
7/28/2019 Lenovo Dell
31/32
Index
Case at a glance
Global PC market
scenario
Focusing Chinese
PC Realm
Business Model:
Lenovo
Business Model:
Dell
Lenovos March inLocal market
Lenovos Emerge
in Global Arena
Recommendation
Q & A
???
7/28/2019 Lenovo Dell
32/32
Thank You All