Case Analysis Lenovo Co.
1. What brand image did IBM have in the personal computer (PC) market in 2005, when this business was sold to Lenovo Group of China? In which market segment did IBM’s ThinkPad have the strongest reputation and market share?
IBM had third place among the world’s pc markets, with annual revenue of $15 billion generated by sales in more than 60 countries. IBM’s ThinkPad falls into he market segment of those in the work force, it is industrially strong and it is IT friendly. Previously IBM’s price was very expensive, now they can get it as cheap as Dell‘s prices. This will in turn, increase the market share for the ThinkPad. Mainly ...view middle of the document...
Although $60 million is big sum of money, it would prove to be beneficial for Lenovo, because by 2007 it will have its recognition that it’s seeking from the world market.
4. Who would watch winter Olympics games in Turin, Italy? Who would watch them on TV? How much attention would they give to the Lenovo brand, or for that matter, how much attention would they give to any sponsor’s brand, such as Visa and Coca-Cola? Should Lenovo approach the same target audience Visa and Coca-Cola have traditionally entertained?
Not only will the locals be attending the Olympics, but spectators around the world would be watching the broadcast over television. This will definitely give Lenovo a lot of attention, seeing their name being advertises during the events alongside with Coca-Cola and other competitors brand. However, Lenovo should not be targeting the same audience as Visa or Coca-Cola, as they are a different market segment from the PC market Lenovo is seeking. Still the effort and the...