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Lenovo At The Crossroads Coronavirus Meets Complexity Case Solution

Solution Id Length Case Author Case Publisher
2251 466 Words (4 Pages) Allen Morrison, J. Stewart Black Thunderbird School of Global Management : TB0595
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There have been several external factors that have altered Lenovo’s strategy ever since its inception. Initially, the company, which was known as Legend at that time, was solely responsible for importing and distributing computers. However, in the late 1980s, China faced a period of rapid economic growth, due to which the company’s chairman Mr. Liu Chuanzhi, altered the company’s strategy to manufacturing computers in-house. Legend started manufacturing computers for the Chinese market.

Case Analysis for Lenovo At The Crossroads Coronavirus Meets Complexity Case Solution

However, as competitors like Dell and IBM began to enter the Chinese market, customer needs and demands changed. Enterprise customers started to request for more custom designs, along with more services. Therefore, Legend altered its strategy again, and began focusing on enterprise customers. It also began to consider the possibilities of expansion outside the Chinese market (Lenovo, 2021). 

In order to become a global brand, Lenovo acquired IBM’s PC division, which made Lenovo the third-largest PC maker. It was difficult to align the cultures of both the companies, and the contrast in processes and systems implemented by both the companies. However, Lenovo took several bold steps in attempts to align both the companies in a manner that would be fruitful for the brand (Nylander, 2016). 

In 2014, Lenovo purchased Motorola Mobility, in a move to enter the smartphone industry (Lenovo StoryHub, 2014). It also purchased IBM’s x86 server business. These acquisitions were due to the consumers’ shift towards the Internet of Things (IoT), and the risk of a decline in sales of Lenovo’s PC business. However, this strategic move was also filled with integration challenges.

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