Management Consultant for Lenovo

Done by:Tony Zhou (26)Lucas Teo (9)Loy Wei Peng (7)

• Comparison of market share between Apple and Lenovo since they have a number of similar products

Main products

Lenovo Personal PC, tablets, smartphone

Apple PC (Mac), tablets, smartphone, digital music player

Do note that our statistics are based on the third quarter of 2012

*Do note that our statistics are consolidated based on the third quarter of 2012

VSLenovo Apple

Market share of PC in the best selling countries of respective products

Dominant supplier of computers in mainland China 

Third largest PC supplier in terms of shipments in USA (13.6% of USA PC market )

Market share in terms of worldwide PC shipments

15.7% of the global PC market, second largest worldwide PC shipments

Not among the top five worldwide PC shipments

Smartphones market share Second place in the Chinese smartphone market

Leading supplier of smartphones in USA (USA market share of 51.2%) and second largest smartphone unit sales (19.8% of global market share)

Market share in terms of worldwide tablets shipments

Fifth among the top five global tablet vendors with a market share of 1.4%

Top global tablet vendor with market share of 50.4%

• Developed many of the applications that we use today (Google Chrome browser, Google Map, Gmail…etc)

• 67% of search engine market shares

Acquired from:http://en.wikipedia.org/wiki/Usage_share_of_web_browsers

Profit Figures (Apple)

Acquired from :http://www.ifoapplestore.com/stores/charts_graphs.html

Profit Figures (Lenovo)

Acquired from: http://www.lenovo.com/ww/lenovo/pdf/report/E_099220121121d.pdf

Profit Figures (Google)

Acquired from: http://investor.google.com/pdf/2012Q2_google_earnings.pdf

• Generally, Lenovo already has its foundation for worldwide market sales, but it has still yet to consolidate it place at the US market

• It is relatively strong in Asia market, but still relatively weak in the West

• Cultural differentiation can be obstacles for Lenovo when breaking into the US market

Lenovo market share in different countries

Sales (US$ 29,574 million)

China, 42%

Mature market 42%

Emerging market, 16%

Lenovo market share in different countries

Notable policies by Google

• 20% rule to encourage innovation• Peer review system to encourage positive competition• Both external and intrinsic motivation so workers feel

devoted to their job Conducive work environment Attractive and correct rewards to engineer, like providing

the application developed to the public for free. After all, to have people using their applications are what all engineers dream of

Notable policies by Apple

• Outstanding leader to ensure stable development• Suitable criticism accompanied with encouragement to

motivate workers(Steve Jobs can make the task of designing a power supply feel like a mission from God)

• Analysis of strength and weakness of every worker upon entering the company

• Secrecy of product development to gain advantages in different stages

(“If you start out early and do a good job and get a good market share, you'll grow and maintain your percentage as you grow.”)

Why does Lenovo need to know about US market?• American consumers judge retail brands by how

they engage them Consumers want retailers to listen to their preference Lenovo has to collect opinions from this group of consumer

• Current US consumer is breaking traditional trend of in-shop purchasing, they are turning to online platforms now

Improve navigation for online purchasing websites Simple checkout process Presence of product image

American Consumers

Suggestions for

Suggestion (Management policy)

• The 20% rule would be a great policy for all technology firms, especially when accompanied by peer competition

• Recruiting of more youths since they are usually more creative and prefer uniqueness. (20% rule would be great for attracting them)

• Support risk-taking and creativity by organising mini competitions for development of products or applications within the company

Suggestion (marketing strategy 1)

• Wider use of social media as an extra platform to collect opinions

Easier accessibility into consumer’s opinions

Ability to collect opinions from different perspectives and consumers from around the world

A good platform for advertising

Suggestion (marketing strategy 2)

• Improve online purchase procedureConvenience is widely regarded now among many consumers such that they turn to the online platform for purchases instead. Ensuring the online tools are well maintained can be a boost to Lenovo’s sales

Better presentation of websites Lower shipping costs Presence of product image from different angles Online surveys to understand users’ shopping

experience and ensure that the different policies stay relevant

Suggestion (product strategy 1)• Following the birth of the SSD (solid state drive),

it has a great potential to replace traditional hard disk drives

SSD may be more expensive than traditional hard disk drives but they are more resilient to shocks with minimal mechanic parts

Higher performances compared to hard disk drives

Faster start-ups, reading/writing speed, file transfer etc Uses half as much energy compared to hard disk drives With its high prices, it may not be attractive in PC market, but it

definitely has its future in the tables and smartphones market since memory consumption is much less and the price becomes more balanced. Currently, the only major technology firm which uses SSD widely is Apple, so Lenovo still has the chance to control the market by deploying SSD technology before other companies

In the long run?

• Consider the aging population which will revolutionize the entire market in the next decade

Quality of products and technology are key to the PC markets, but presentation of products should not be neglected either

Mature consumers complain that many tag labels of electronic products are too hard to see

Too complicated systems and functions Can Lenovo produce a gadget that take the older consumers into

consideration too? It would be good to start now so as to accumulate enough experience to combat the massive older consumer in the market after the next 50 years

Areas to consider:

Packaging of products

Lenovo’s statshttps://www.idc.com/getdoc.jsp?containerId=prUS23772412

http://www.reuters.com/article/2012/11/08/us-lenovo-results-idUSBRE8A707020121108

http://www.zdnet.com/cn/lenovo-to-become-top-smartphone-player-in-china-by-2013-7000007721/

Apple’s statshttp://www.macrumors.com/2012/10/10/apple-hits-new-high-with-13-6-share-of-u-s-pc-shipments-in-3q-2012/

http://mashable.com/2012/11/05/apples-tablet-market-share-drops-to-50-4-percent-report/

http://velositor.com/2012/04/04/apple-and-samsung-forecasted-to-lead-in-2012-global-smartphone-sales-no-expected-resurgence-for-nokia/

Google statshttp://en.wikipedia.org/wiki/Usage_share_of_web_browsers