Lenovo - Building a Global Brand

I)Introduction Before Lenovo acquired IBM s personal computer division in 2004, it had a untouchable presence in Asia, especially in China. Most of its revenues came from there. IBMs personal computer division invented the PC in 1981. Through this acquisition Lenovo could fare IBMs run down contacts and relationships, and it became stronger, ranking as the third largest PC maker in the world right after the twain giants Dell and Hewlett-Packard. Nowadays, Lenovo is march all over the world. IBM sold its PC business to Lenovo because IBM struggled with change magnitude profits. IBM started to make losses with personal computers. While IBMs PC business shifted from premium quality to a bargaining commodity model, Lenovo was able to grow to its highest saturation in China. IBM shifted its focus on high end margin businesses like consulting and middleware software. The acquisition helped Lenovo to die hard in a bigger market. Both companies needed to each one otherwise in order to grow and to stay in business. In general, companies merge because they need to cut expenses or to equilibrize in developing new products. HP acquired Compaq in 2001 and inlet acquired eMachines in 2004. That is why IBM wanted and needed to cooperate with another(prenominal) company, too.

It do a smart decision in cooperating with Lenovo because Lenovo was a strong brand in Asia and a market attracter in China. A market leader is defined as roughlybody who has the largest market share and usually leads in price changes, new-product introductions, statistical distribution coverage, and promotional intensity (Kot ler/ Keller, Marketing Management, page 299)! . This joint-venture betwixt IBM and Lenovo is a very strong one because IBMs products train a good reputation and both can keep nark to new big markets (IBM in Asia and Lenovo word-wide).There is a co-branding when two or more well-known brands are feature into a joint product or marketed together in some fashion (Kotler/ Keller, Marketing Management, page 344). Co-branding can...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper