Executive Summary:
Lenovo Group Limited is the largest information technology (IT) corporation in the People’s Republic of China (PRC). It has long dominated its home market in the manufacture of personal computers (PCs), and now harbors ambitions to enter other related electronics businesses on a global basis. Using the diamond business strategy model proposed by Hambrick and Fredrickson, we highlight how Lenovo crafted its business strategy to build and sustain its competitive advantage of PCs in Asia. Furthermore, we highlight some of the critical success factors that have enabled Lenovo to attain its competitive advantage over the past two decades in the Chinese market. In addition, we consider some actions that Lenovo may undertake in the next few years to build more enduring sources of competitive advantage as it strives to become a global powerhouse. The lessons that apply to Lenovo may also be instrumental to other Chinese companies seeking to design and produce name-branded products for the global marketplace. |
