Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 9 pages
Data source: Published sources
Topics:
Lenovo Group Limited; China's PC (personal computer) industry; Lenovo's competitors; Market share of PC companies in China; IBM's PC division; Lenovo's acquisition of IBM's PC division; IBM's transformation strategy; Customer service from new Lenovo; Synergies from IBM Lenovo deal; Mergers in technology industry; Corporate culture; Global PC market
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Abstract
In late 2004, Lenovo Group Limited (Lenovo), China''s leading PC (personal computer) maker, acquired the Personal Computing Division of IBM. While Lenovo views this acquisition as an opportunity to take on the global PC market, IBM hopes to enhance its foothold in China. However, before reaping the synergistic benefits from the acquisition, Lenovo has to deal with competitors like Hewlett Packard and Dell and also deal with corporate cultural differences and fear, uncertainty and doubt among its customers. This case study offers scope to discuss whether the Lenovo-IBM deal would be able to prove its strategic fit in the global PC industry.
About
Abstract
In late 2004, Lenovo Group Limited (Lenovo), China''s leading PC (personal computer) maker, acquired the Personal Computing Division of IBM. While Lenovo views this acquisition as an opportunity to take on the global PC market, IBM hopes to enhance its foothold in China. However, before reaping the synergistic benefits from the acquisition, Lenovo has to deal with competitors like Hewlett Packard and Dell and also deal with corporate cultural differences and fear, uncertainty and doubt among its customers. This case study offers scope to discuss whether the Lenovo-IBM deal would be able to prove its strategic fit in the global PC industry.