Ibm/lenovo Essay - 1,012 words

IBM/Lenovo The merger IBM/Lenovo has a serious influence on IT market: the purchase creates the third largest PC vendor in the worldwith $13 billion in revenue and 14 million units shippedtrailing Dell Inc. and Hewlett-Packard Co., and gives IBM greater access to the emerging Chinese market (Burt 2005). The matter is not only in the very fact of restructure of quite strong and influential business-direction of IBM but in possible changes in the structure of supply channels. Lenovo was a strategic partner of IBM. The company manufactured personal computers according to OEM agreements (notebooks and workstations ThinkPad and ThinkCenter). In such a way, the merger of businesses was examined as a quite logical continuation of partnership between two companies. IBM will be the preferred services and customer financing provider to Lenovo, while the Chinese company will be the preferred supplier of PCs to IBM (Zia Askari 2005).


The customers also will have no objections as in fact they get used to computers under IBM logotype with the mark made in China. Lenovo Lenovos history of success is one of the most popular legends in China. It is actively being spoken about as the sound example of Chinese economical miracle. Lenovo uses cheap labor force, decrease in cost of production and simple construction of their PC and proposes cheap computers. As far as we know, Lenovo Group was founded more than 20 years ago and was known as Legend Computer trademark. Lenovo enjoys a leading position at Chinese IT market with the market share of 27%.


Lenovo also enjoys the first place at the Asian-Pacific Ocean region and is highly competitive to Japan. In such a way, so-called alliance between IBM and Lenovo will help to increase the volume of sales at those markets because IBM Company is known mostly as supplier of corporate solutions. IBM/Lenovos Merger IBM company plans increase Lenovos working staff by approximately 9,000 of workers specialized in marketing, promotion, support manning and everything not related to manufacture. As will readily be observed, all IBM laboratories responsible for development of configurations, design, PC testing will belong to IBM/Lenovo alliance. In such a way, the management of companies will not be afraid of the fact that share of business will affect legendary reliability of IBM corporation. How will computers be positioned? Shop floor productivity scheme is made up for 18 months.


It means that during the period of adaptation product line will remain unchangeable and production of IBM/Lenovo will be mutually complementary and will be sold under the united brands IBM ThinkPad and IBM ThinkCenter. IBM was mostly oriented at upper-class consumers including corporate customers, whereas Lenovos production is mainly oriented at average customers and SMB segment. Both companies have similar production at several price segments, however, they will undertake certain measures to avoid such dub in order to be competitive with HP and Dell. As far as we know, Lenovo received the right to use ThinkPad and ThinkCenter brands during the 5-year period. After this period the logotypes will remain unchangeable and will be actively promoted. However, IBM will focus attention that these brands a ...................................................................................................................................................................................................................................................................................................................................................................

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Essay Tags: customer, personal computer, computer, computers, merger

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