Management Essay Example | Topics and Well Written Essays - 2500 words - 2

Management - Essay Example Some of them can be listed as Dell, Hewlett Packard, Toshiba, Acer, Apple Inc., Lenovo and many more meeting the needs of the various segments of the industry. It is to be noted that in 2002, Compaq and Hewlett Packard formed a merger and in 2004, IBM sold off their PC business to Lenovo. The Compaq and IBM used to dominate the market in the mid-1990s and HP and Dell were formidable players in the late 1990s when share of IBM was dwindling year after year. With a great foresight, IBM became a minority share holder in Lenovo capturing18.4% share holding and IBM granted Lenovo rights to use their brand for 5 years. Eventually, Lenovo got the product brand ‘ThinkPad’ from the IBM on permanent basis. (IBM sells PC†¦2004) ASPECT 1 SWOT Analysis of Lenovo It will be worthwhile to see the Strengths, and Weaknesses of the company. Further it would be appropriate to look into the opportunities that are waiting for the company and impending threats which can hamper the growth of the company. Strengths a. The company has got back-up of IBM through their well qualified technical and managerial staff. b. All its computers are sold with IBM brand ‘ThinkPad’ providing a confidence to the consumers in the market place. c. For having access to low-cost labor, the company enjoys low cost of production across its product range. d. Being a state-owned company, the company is supported through local favorable rules and regulations during normal and adverse market conditions. Weaknesses a. Having few manufacturing bases outside china, the company may be in trouble during calamities, or natural disasters within the country. b. Being a state-owned company, certain delay in decision making process is inevitable and that works negatively for the company. Opportunities a. Worldwide installations are growing at the rate of 10 percent and above. PC penetration is still low in emerging markets and there is also a considerable market waiting to be tapped in mat ured economies. This provides a good growth possibility for the company like Lenovo. b. The field of computers is making regular up gradation and due to its linkages with IBM; the company is well placed in adopting any new technology that may come from its technology partner. c. In the long run, IBM’s expertise in the field of software and the long history of research and development is likely to give immense benefits to Lenovo. It forms a good synergy between the companies like Lenovo–having a low-cost manufacturing base and technology inputs from a technology giant like IBM. Threats a. Lenovo is currently competing with some of the world best companies like Acer, Dell, and Hewlett Packard. Any merger between them is likely to create a big threat to Lenovo. b. Dell and HP are expanding their operations and opening new manufacturing bases in China. This can certainly be looked as a big threat to the company. The SWOT analysis will also have bearing of some of the exter nal forces that may affect Lenovo. It will be worthwhile to identify some of the sociopolitical and other factors that may influence the working of Lenovo. Lenovo is a state-owned company having most of its operations in China barring a few installations in India and Mexico. India and Mexico operations are mostly for the local needs of that country. (News 2007) Majority of the manufacturing operations of Lenovo are based at China. Lenovo is a stat