Lenovo is best known for its personal computers. It is one of the largest personal computer manufacturers and sellers in the world. The most famous laptop series of Lenovo include Thinkpad, IdeaPad, Legion, and Yoga, while ThinkCentre and IdeaCentre are the two most famous desktop computers of Lenovo. Specifically, Lenovo is known for the durability, processing capability, and affordability of its laptops.
Lenovo’s Strategy and Business Model
The reason behind Lenovo’s immense growth is its famous business strategy known as “Protect and Attack.” It was introduced by the CEO Yang Yuanqing. This strategy has two parts. One is to protect the current market share of the company, and the other is to increase the importance and worth of the company by attacking certain gaps in the market.
Lenovo also has a very interesting pair of business models to execute the strategy of Protect and Attack. One model is named “Transactional,” and the other is named “Relationship.” The Transactional business model totally focuses on sales. Using this model, Lenovo increases its sales throughout the world.
On the other hand, the Relationship business model deals with the relationships of the company with its customers. These customers can be individuals, organizations, small-sized businesses, educational institutions, etcetera. By combining these two business models, Lenovo implements its “Protect and Attack” strategy.
Ten interesting facts about Lenovo
- Lenovo was founded 38 years ago:
Lenovo was founded in 1984, making it one of the oldest personal computers manufacturer. The company was founded by Liu Chuanzhi and his team of engineers. Initially, this company was named New Technology Developer Inc.
- Legend, Lenovo’s Former Name:
The company was founded with the name New Technology Developer, Inc., but soon the name was changed to Legend. The company gains huge successes under its previous name. In 2003, its name was changed again, and this time, it was named Lenovo.
- Lenovo Spent $30 million on Rebranding:
After changing its name in 2003, the company took it very seriously. In the period of 11 years, the company spent $30 million to familiarize the customers with their new name. Out of this amount, $3 million was spent in the first two months.
- Lenovo’s Current CEO was Hired in 1988:
In 1988, Lenovo was in need of employees. The company quadrupled its employees that year. Around 58 candidates were hired by Lenovo. Yang Yuanqing was also hired in this recruitment campaign.
- Lenovo’s Agreement with Microsoft:
To expand in other continents, Lenovo made a partnership with Microsoft in 1977. At that time, it was the most profitable deal ever made by a Chinese company. Resultantly, Lenovo started selling their products in more countries.
- Lenovo’s First PC was released in 1990:
Lenovo, under the name Legend, released its first personal computer in 1990. IBM was a popular manufacturer of PCs at that time. Lenovo introduced its PC to stop IBM from capitalizing on the personal computer market.
- Lenovo Acquired IBM’s Division:
Lenovo acquired IBM’s personal computer division in 2005 for $1.25 billion. This made Lenovo the third-largest personal computer manufacturer. It also increased Lenovo’s annual sales hugely.
- Lenovo Acquired Motorola:
Motorola Mobility was owned by Google. In 2014, Lenovo acquired Motorola from Google for $2.91 billion. Motorola Mobility is the mobile division of Motorola, Inc. Lenovo wanted to enter the smartphone market. That is why it acquired Motorola Mobility.
- Lenovo’s Current Logo:
The current logo used by Lenovo was designed in 2015. This logo depicts Lenovo’s innovative approach towards technology and respect for their customers. Lenovo believes that this logo is more adaptable for them.
- Lenovo has a Monopoly in PCs:
Around 20% of the global personal computers’ sales are held by Lenovo. According to Wikipedia, Lenovo is the world’s largest PC company by sales. The company’s major revenue also comes from personal computers. This shows that Lenovo has capitalized personal computers market.