Lenovo’s Five Industry Forces

Lenovo is a business that is built on product innovation, a highly efficient global supply chain and strong strategic execution. Its products range from exceptionally engineered laptops, ultrabooks, tablets, desktops and servers. According to research, for businesses to understand adequately the nature of the competition and the industry forces that they face, they must define their market accurately by recognizing a broad base of its competitors. Major dominating competitors of Lenovo’s personal computers division are Apple Inc., Hewlett-Packard and Dell. Lenovo’s strategy is to develop latest PC’s that are efficient, light in weight with latest features and of course with low competing price as there is cut throat competition in the market. With innovativeness, entrepreneurial spirit and teamwork across various cultures, Lenovo has captured the global market and positioned itself within a short life span as a next generation global company of PC’s.

The general state of national as well as international economies effect profoundly the performance and prosperity of a company as economies are rarely stable and fluctuate quite often. Poor economic conditions make the environment more complex and managers’ jobs more difficult and demanding. The global recession that occurred in 2009 and the fall in global demand and the slow down in economic growth translated into a substantial reduction in global trade. As we already know, it affected the cross-border trade of virtually all countries and economic sectors and some industries are still battling with high inflation. Research shows that while Lenovo’s rivals are outsourcing, its in-house production has helped Lenovo stay upbeat with the competition by lowering their prices which is a key advantage to grow economically.

Technology development impacts substantially on people’s lives and companies’ fortunes. In a highly competitive global marketplace all organizations need to be fully aware of the prevailing...