Lenovo's Brand Building Strategies: Taking the Competition to Competitors with "Transactional Model"

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Case

Reference no. 308-051-1

Subject category: Strategy and General Management

Authors: Saradhi Kumar Gonela (IBS Case Development Center); Mohammed Amjad Khan (IBS Case Development Center)

Published by: IBS Case Development Center

Published in: 2008

Length: 6 pages

Data source: Published sources

Topics: Personal computers (PC); Mergers and acquisitions; Integration challenges; Brand integration; Branding; Branding challenges; IBM; Lenovo; Brand building in consumer goods; Note book computers; Chinese PC industry; PC manufacturers; Global PC industry; Brand building strategies

Share a link: https://casecent.re/p/79016

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Abstract

Neither China nor the Chinese companies can be any more ignored at any international business discussion. An oft-cited reason is Lenovo's acquisition of IBM's PC division that has revved up brand China. After that, Lenovo is busy building its own brand at the global level. This top PC-maker in China has served its home turf so well with its unique business model, dubbed the 'Transactional Model'. It is quite upbeat that the strategy will pay off globally too - catapulting it to the top spot. However, sceptics have their reasons; mainly that its top-3 rivals - HP, Dell and Acer - wouldn't let Lenovo topple them. The case study helps debate if Lenovo's 'Transactional Model' is suitable for other countries also, and if this model helps it combat global giants operating at a bigger scale. The case also helps discuss loopholes in Lenovo's model and how to fill them up.

Industry:

Computer related services

Other setting(s):

2007