Lenovo is the top worldwide PC vendor, ahead of rivals HP and Dell. Lenovo is based in China and generates more than $38 billion in total sales and offers desktops, laptops, tablets, workstations, servers, and mobile phones to customers across the globe. Company Strategy The PC industry has reached maturity, especially in the advanced economies. The industry is global, which means firms compete with each other, and cater to customer needs, on a global scale. Lenovo has adopted a global strategy for its operations. As part of this strategy, management views the world as one large marketplace. Key to Lenovo’s success is ensuring organizational learning to optimize the firm’s value-chain activities continuously. Lenovo uses mergers and acquisitions (M&As) to acquire needed knowledge and other assets from partner firms and to expand into markets worldwide. In 2005, Lenovo acquired the PC business of IBM. The deal instantly established Lenovo as the number-three PC maker worldwide. In 2011, Lenovo formed a merger with NEC, the largest PC vendor in Japan, to access the huge Japanese PC market better. The merger increased Lenovo’s scale economies in manufacturing and marketing. In 2014, Lenovo acquired the telecommunications firm Motorola Mobility. This provided Lenovo with a strong footing in the global smartphone business. Lenovo follows a protect-and-attack strategy. While protecting its core business, especially the Chinese market, Lenovo is aggressively growing its market share in emerging markets and advanced economies. Lenovo now obtains about 20 percent of its revenues from emerging markets outside China. Senior management emphasizes global products and branding, global human resources, and creation of a corporate culture conducive to global success. 1. Name and briefly describe the strategy Lenovo is using. A complete answer must include at least two extracted examples from the Case, to help support your answer.

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Lenovo is the top worldwide PC vendor, ahead of rivals HP and Dell. Lenovo is based in China and
generates more than $38 billion in total sales and offers desktops, laptops, tablets, workstations,
servers, and mobile phones to customers across the globe.
Company Strategy
The PC industry has reached maturity, especially in the advanced economies. The industry is
global, which means firms compete with each other, and cater to customer needs, on a global scale.
Lenovo has adopted a global strategy for its operations. As part of this strategy, management views
the world as one large marketplace. Key to Lenovo’s success is ensuring organizational learning to
optimize the firm’s value-chain activities continuously. Lenovo uses mergers and acquisitions
(M&As) to acquire needed knowledge and other assets from partner firms and to expand into
markets worldwide. In 2005, Lenovo acquired the PC business of IBM. The deal instantly
established Lenovo as the number-three PC maker worldwide. In 2011, Lenovo formed a merger
with NEC, the largest PC vendor in Japan, to access the huge Japanese PC market better. The merger
increased Lenovo’s scale economies in manufacturing and marketing. In 2014, Lenovo acquired
the telecommunications firm Motorola Mobility. This provided Lenovo with a strong footing in the
global smartphone business. Lenovo follows a protect-and-attack strategy. While protecting its
core business, especially the Chinese market, Lenovo is aggressively growing its market share in
emerging markets and advanced economies. Lenovo now obtains about 20 percent of its revenues
from emerging markets outside China. Senior management emphasizes global products and
branding, global human resources, and creation of a corporate culture conducive to global success.

1. Name and briefly describe the strategy Lenovo is using. A complete answer must include at least
two extracted examples from the Case, to help support your answer. 

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