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.