Case ID: 507014     Solution ID: 30667

Lenovo Case Solution


When China’s largest PC maker, Lenovo acquired IBM’s PC division in a heavy acquisition deal of around $1.75 billion around December 2004, it managed to attract much popularity around the headlines. Although IBM was the one who invented PC in the first place around 1981, Lenovo being the acquirer was virtually unknown in the rest of the world. Since for Lenovo the major 90% of the revenue share was generated through the Chinese market, this billion dollar investment was seen as the platform for the company to attain the needed global recognition. As a new multinational, Lenovo had almost 20,000 employees in 138 countries under it, which meant that the company needed a formal global marketing and branding strategy to survive with the rest of the technology giants. This marketing strategy was seen as the opportunity through which Lenovo could communicate what its product aimed for. Around January 2006, almost after eight months since the deal got closed, Lenovo was preparing for massive recognition through its role as the Turin Winter Olympics sponsor. The idea was to give Lenovo the name of a brand that aimed for the small and medium sized enterprises. How differentiating it might sound to them but was seen as much risky move by observers.

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