Lenovo A Global Case Study

993 Words 4 Pages
Lenovo, the third largest manufacturer of personal computers, has been globally expanding its market. There are various theories and frameworks applied by Lenovo while expanding or internationalizing its market globally. There are various factors that affect globalisation such as rapid development of technology, barriers to free flow of services. Lenovo follows stages theory, Uppsala model and industrial network approach for expanding internationally (Ge and Ding, 2011). The weaknesses of theories are identified with a suggestion to alternative perspectives. The essay further provides an external research with examples how Lenovo has globally expanded by fitting in emerging MNE 's regarding features, patterns and challenges.
As per Uppsala
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The internationalization process relates to accumulating experiential knowledge and market commitment. Lenovo started its internationalization process by exporting to countries having similar culture (Wu, Wu and Zhou, 2012). There is fierce competition in the market that makes it difficult for companies to increment experience and knowledge. Lenovo dealt with market share, technology and management for its global expansion and foreign market entry. The strategic objective of Lenovo to expand its market globally is quite clear. Lenovo wants to build its presence in the emerging MNE 's (Santangelo and Meyer, 2011). Lenovo has been implementing various strategies such as brand strategy, marketing strategy, investment strategy for increasing its visibility in the global market. Lenovo has made efforts to bridge different cultures and languages to complete the integration process. According to Liu Chuanzhi, the motive of globalization is to reach a number of people. There were several challenges faced by Lenovo in expanding internationally. There were cultural clashes among the employees of the company. Technological innovation and research and development were another challenges (Jin, Wang and Vanhaverbeke, …show more content…
Lenovo has been implementing various strategies such as brand strategy, marketing strategy, investment strategy for increasing its visibility in the global market. Lenovo should follow an incremental process for international expansion. Protect and Attack strategy was acquired by Lenovo to defend rather than attacking. Lenovo follows theories and frameworks for internationalisation such as Uppsala Mode, Stages Model, the New-born approach for increasing visibility. There are various internationalisation strategies followed by companies to compete regarding cost and location. The IT firms usually prefer acquisitions or wholly owned subsidiaries. Lenovo has acquired major electronic companies worldwide such as Medion, IBM, CCE and Stoneware. The company uses entry modes for entering the global

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