Lenovo case analysis essay

Contending at a global scale needs profound manufacturer equity. Lenovo is a famous brand in China (as Legend) but it really cannot get a global technology giant like Dell or Hewlett-Packard, by simply merely acquiring the Personal Systems Division of APPLE, whose products are well-liked across the world. Normally, the key challenge in building global brands lies in devising the manner where a company may position their brands in customers’ mindsets, while taking into consideration global competition that comes from nationwide and international suppliers (Wright, Millman & Martin, 3 years ago, p.

139). Lenovo needs to engage in smart marketing to draw consumers and make on its own a pressure to reckon with in the global personal computer market. According to the case study, the global PERSONAL COMPUTER industry is extremely competitive with all the leading performers being Dell, HP, Lenovo and its APPLE acquisition, and Acer and Fujistu-Siemens amongst other businesses and sellers locked in tight competition (Quelch & Knoop, 2006, p. 2-3). Therefore , Lenovo has a overwhelming task to create brand value to thrive at a global scale.

The Key Issues

The issue that Lenovo is principally dealing with is how it might effectively get into the global industry, where it is not only attempting against the competition, but is likewise dogged by simply an incredulous market. For the surface, the offer between Lenovo and IBM seems to give the former a platform to be successful due to the complementary nature with the operations with the two businesses and because the deal facilitates the expansion of Lenovo’s operations supply by china manufacturer and Asia to over 138 countries on the globe, where APPLE is established (Quelch & Knoop, 2006, g. 6). Yet , in a marketing research that the company performs among 4, 000 APPLE customers, the concerns increased are which the innovation, quality, and service and support are going to be in a negative way impacted by the takeover of IBM brands by Lenovo (Quelch & Knoop, 06\, p. 9). The grievances held by the consumers are an important undoing to Lenovo’s efforts to create solid brand equity.

The criticism shows that absolutely free themes harbor negative brand understanding of Lenovo. Company knowledge includes brand understanding and manufacturer image (Wright et approach., 2007, s. 140). Normally, brand know-how determines the directions the brand usually takes and, subsequently, this impact on the decision that marketers consume creating a company promise, which usually entails updating the public about the positive essence of the brand and its purpose (Kotler, 2012, g. 115). Your competitors must be addressed seriously by using a brand promise, with strong product proportions. A brand’s dimensions distinguish an providing from other offerings that are aimed at satisfying similar need by either focusing on item performance by simply introducing efficient, rational, or tangible dissimilarities or by simply emphasizing the symbolic, psychological, or intangible factors (Kotler, 2012, l. 114).

Lenovo has the chance to utilize the brand name equity creation process that emphasizes within the product overall performance in the stage of presenting itself in to the global marketplace, while planning to rely on the latter dimension in the long term. Brand value is created by simply thoroughly fulfilling the occurrence, relevance, performance, advantage, and bonding sizes, in an raising order worth addressing (Kotler, 2012, p. 116). Profound customer loyalty is usually achieved after the firm attains a market talk about. Companies get a share of the heart and a share of the head of customers if it is authentic and genuine, aspects, which bring about higher, market share and success (Kotler, 2012, p. 135). As much as the main marketing officer of Lenovo states that branding can be described as business issue rather than a promoting issue, the manufacturer is a matter of the belief created simply by product’s substance and marketers’ efforts.

Substitute Courses of Action

The courses of actions that can be used by Lenovo include establishing a master brand, a house of brands, synergy approach, and also the strategy called commonly since Lexus/Toyota. First, the master brand approach can be useful for building a brand equity for Lenovo on a around the world scale, yet there are anxieties that the ThinkPad influence could possibly be lost in the event that this strategy is usually adopted. Second, the house of brands approach can permit the firm to establish various brands at once, but it is definitely expensive to sell the different brands. Third, the synergy procedure will area company have Lenovo as a master company, while the ThinkPad shall be regarded as a superior sub-brand. Fourth, beneath the Toyota/Lexus strategy, a premium type of ThinkPad brands are established alongside fundamental Lenovo brands (Quelch & Knoop, 06\, p. 9). Evaluation ofthe Alternative Courses of Action

The course of action the fact that company should certainly choose needs to address the global market conditions, while likewise upholding Lenovo’s desire to compete internationally. To gauge the conditions in this industry environment, the corporation engages in considerable marketing study. The research also comes in handy in assisting the company to generate well-informed decisions, to understand the market, and most significantly, to learn regarding customer satisfaction as well as the value of goods on offer. In addition , the advantages in the primary data collected will be that the respondents pinpoint all their challenges concerning the use of personal computers in business, provide voice to current concerns, and enable the firm to gauge the needs in different nations.

The master manufacturer option is challenging to Lenovo since the market ok bye it since untrustworthy. The high level of dishonesty which Chinese organizations are considered in the remaining world can be described as major crítico to the achievement of this strategy (Quelch & Knoop, 2006, p. 8). If this approach is chosen, building good brand know-how would not be an easy factor for Lenovo, in spite of getting the reputable ThinkPad brand at its disposal. The ThinkPad obtain doubtlessly makes Lenovo possess a comparison advantage in the global opportunity. The ThinkPad has already received a lot of accolades pertaining to design and engineering enhancements since it was introduced in 1992, with a of its superior qualities being electrical power, portability, and wireless social networking (Quelch & Knoop, 2006, p. 6).

The internet marketers in Lenovo must for that reason create great brand understanding if they choose this approach. Failure to do this means that your premium ThinkPad brand will be thought of as a substandard product by consumers. The home of brands option would make the company get a lot of expenses in the marketing function, without always achieving the desired sales of any of the brands. The company’s CMO concedes this strategy are unable to succeed because the company experienced limited assets at the time (Quelch & Knoop, 2006, s. 9). House-of-brands has brands that are 3rd party, which are relatively endorsed by the organizational manufacturer (Rajagopal & Sanchez, 2004, p. 238). However , the reputation of the Lenovo while an organization in the international marketplace is not favorable at this juncture hence this cannot showcase brands successfully.

The synergy approach, which entails a master company getting recognitionpartially due to a remarkable sub-brand, might require opportunities to collectively build the Lenovo plus the ThinkPad brands (Quelch & Knoop, 06\, p. 9). The ThinkPad sub-brand would be expected to be a co-driver inside the success of Lenovo. The shortcoming on this approach is that the association may well taint the of the prestigious brand in the event the brands you don’t have comparable features (Aaker & Joachimsthaler, 2150, p. 15). Clearly, damaging of the ThinkPad brand likely will end up undoing the admittance of Lenovo into the global market. The Toyota/Lexus approach will power Lenovo to ascertain luxury and mass marketplace brands independently. This strategy will certainly entail rendering of dissociated brands, with each expected to perform well within its portion. However , beneath the global environment into that the firm can be entering, creation of a mass product is not really feasible.

The utilization of PCs is now ubiquitous and consumers are looking for enhanced development, better quality and reliability, firmer security, and better design (Quelch & Knoop, 2006, p. 10). To offer consumers the desired item, the organization was meant to invest in improving computer products, rather than making low quality affordable products. Consequently, this strategy can make the company shed its main business. Following considering all the branding approach options, Lenovo managers should appropriately consider the category regular membership under competitive frame of reference. Category membership refers to the products which a brand competes and which can be close alternatives to that (Kotler, 2012, p. 130).

The managers should to create points of differences that would make the company have got a competitive edge. At the present, Lenovo discover a heritage of customer focus, development, and consistency (Quelch & Knoop, 2006, p. 7). These elements have a potential of making associated with products it offers distinctive and superior compared to competitors inside the global marketplace. The focus in the company must be on long term holistic performance of its products. A well proven brand value drives brand loyalty amongst customers, producing the company to savor security of demand, so that it is hard for brand spanking new competitors to enter the market, and making the shoppers willing to pay a greater prices intended for the giving (Kotler, 2012, p. 114). The Best Intervention

According to the information presented in the case, the re-homing of Lenovo as a expert brand is a good course of action. Nevertheless this substitute is risky, it is worthy because of the greatest good image it would create for all the brands on offer at a global level. Making Lenovo a expert brand helps you to make the key products from the company for the entire world. Grasp or friends and family branding is definitely where a friends and family brand is usually associated with a number of brand extensions. The use of the company’s brand name throughout the entire products’ range reduces development costs and enhances sales if the corporate image is connected with innovativeness, experience, and stability, which are elements that influence consumer evaluations directly (Kotler, 2012, g. 123).

The company actually chooses to use this plan with fantastic level of ingenuity. The first global advertising campaign is usually signed away with “ThinkPad,  the other campaign highlights that Lenovo is doing much better than IBM by simply improving the ThinkPad, as the third marketing campaign stresses which the Lenovo expert brand presents innovation (Quelch & Knoop, 2006, l. 10). Intro of brand extendable is facilitated under the expert brand. New releases that are presented as manufacturer extensions generally succeed because the customers’ anticipations of the new product are based on their particular knowledge about the parent manufacturer and how relevant they get the information (Kotler, 2012, p. 123).

Any kind of product offered under an umbrella of your brand name grows an personality out of the consumers’ perceptions with the product, the marketing activity, word-of-mouth marketing, and the person psychological pair of customers (Wright, et approach., 2007, p. 140). In essence, corporate brand endorsement in the international markets reassures consumers and is an integrating power, which unifies different manufacturer identities over a global range (Rajagopal & Sanchez, 2004, 246). Guarantee that customers benefit from the method vital pertaining to successful advertising. Moreover, brand equity is definitely leveraged in a new context if the learn brand makes the product more pleasing to consumers and its positive associations will be relevant and appropriate (Aaker & Joachimsthaler, 2000, l. 18). Together with the master brand strategy in position, continuous accomplishment of the Lenovo brand as well as extensions is definitely guaranteed.

References

Aaker, D. A. & Joachimsthaler, E. (2000). The brand relationship spectrum: The important thing to the company architecture obstacle. California Managing Review, 42(4), 8-23. Kotler, Philip. (2012). A Platform for Marketing Management

P. Kotler and T. L. Keller (Ed). Upper Saddle Riv, NJ: Pearson education Incorporation. Quelch, M. & Knoop, C. (2006). Lenovo: Creating a global company. Harvard Business School. Rajagopal & Sanchez, R. (2004). Conceptual evaluation of brand structures and human relationships within merchandise categories. Brand Management, 11(3), 233″247. Wright, L. Capital t. Millman, C. & Martin, L. Meters. (2007). Analysis issues in building manufacturer equity and global brands in the laptop or computer market. Diary of Marketing Management, 23(1-2), 137-155.

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