Question

Write up a qualitative analysis of Lenovo

1. Description of the Operating Environment

2. What is their Core Business? How do they make money?

Answer 1

1. Operating environment of Lenovo:

Lenovo is the largest PC maker in the world. It was incorporated in 1988 & has a good market share even when there was a decline in the PC market. The company’s major strong hold is its Asian markets but has to still grown in European & developed markets.

There are several economies which are in a poor situation & that is considered to be a threat for Lenovo’s business. The currency volatility in several economies has an impact on the revenue & profits of Lenovo. Lenovo also faces intense competition in the PC industry because there are other brands who are acting very aggressively in order to catch hold of the PC industry

Apart from the IBM’s PC division, Lenovo has acquired the Motorola mobility & system x for its future growth.

It is also working with Google and Amazon to raise the contribution of smart phones and other new businesses to its total sales. While Lenovo has focused a lot on innovation, the game is tough because of the intense competition.

Apart from these things, Lenovo also faces heavy political & legal challenges in the environment where it is operating its business.

In 2012 Lenovo became the fastest growing company in the USA for 8 quarters in a row. Actually, they are the only one who has a growth.

2. Today Lenovo is one of leading PC vendors. They manufacture tablets, laptops, ultra books, All-in-One PCs, desktops, net tops and own accessories. Lenovo creates unique and durable products at really aggressive price point. Hence their core business is all of the above mentioned products. Hence it makes money majorly through production & sales of all of these items.
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