Strengths And Weaknesses Of Lenovo Essay examples

993 Words Nov 11th, 2015 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 model, there are three basic assumptions made by the company. Firstly, have thorough knowledge about foreign markets. Secondly, invest in foreign markets incrementally because of uncertainty. And lastly, knowledge is difficult to transfer to other individuals. The model is reliable and valuable in stages of internationalisation. In the case of stages theory, the firm first develops a domestic market and further generates a series of incremental decisions. There are four stages in the stages model: no indirect exporting, direct exporting, foreign production and manufacturing and the establishment of the foreign sales office. The companies become multinational corporations on the gradual process and incremental international involvement (He,…

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