Lenovo - Building a Global Brand

I)Introduction Before Lenovo acquired IBM s face-to-faceized computer division in 2004, it had a untouchable nominal head in Asia, especially in China. Most of its revenues came from there. IBMs personal computer division invented the PC in 1981. Through this encyclopaedism Lenovo could squeeze IBMs rumple contacts and relationships, and it became severeer, ranking as the three largest PC maker in the world right aft(prenominal) the twain giants Dell and Hewlett-Packard. Nowadays, Lenovo is bear witness all over the world. IBM sell its PC business to Lenovo because IBM struggled with lessen profits. IBM started to make losses with personal computers. While IBMs PC business shifted from premium feature to a bargaining trade good model, Lenovo was able to grow to its highest intensiveness in China. IBM shifted its focus on high end bound businesses like consulting and middleware software. The acquisition helped Lenovo to turn tail in a life-size commercialize. Both companies contracted severally otherwise in put up to grow and to stay in business. In general, companies merge because they need to cut expenses or to balance in developing in the raw reapings. HP acquired Compaq in 2001 and introduction acquired eMachines in 2004. That is why IBM cherished and needed to cooperate with other company, too.

It do a flip decision in cooperating with Lenovo because Lenovo was a strong brand in Asia and a market attractor in China. A market leader is defined as roughlybody who has the largest market share and unremarkably leads in price changes, new-product introductions, statistical distribution coverage, and promotional flashiness (Kotler/ Keller, trade Management, page 299). This joint-venture amidst IBM and Lenovo is a very strong one because IBMs products present a good account and both can nurse nark to new big markets (IBM in Asia and Lenovo word-wide).There is a co-branding when two or to a greater extent well-known brands are feature into a joint product or marketed together in some fashion (Kotler/ Keller, Marketing Management, page 344). Co-branding can...If you want to get a full essay, evidence it on our website: Ordercustompaper.com

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