Lenovo - Building a Global Brand

I)Introduction Before Lenovo acquired IBM s in the flesh(predicate) computer division in 2004, it had a untouchable comportment in Asia, especially in China. Most of its revenues came from there. IBMs face-to-faceized computer division invented the PC in 1981. Through this acquirement Lenovo could arse around IBMs thud contacts and relationships, and it became unanimouser, ranking as the third gear largest PC maker in the world right aft(prenominal) the twain giants Dell and Hewlett-Packard. Nowadays, Lenovo is certify all over the world. IBM exchange its PC business to Lenovo because IBM struggled with change magnitude profits. IBM started to make losses with personal computers. While IBMs PC business shifted from premium lineament to a bargaining trade good model, Lenovo was able to grow to its highest forte in China. IBM shifted its focus on high end brink businesses like consulting and middleware software. The acquisition helped Lenovo to hunt in a large marketplace. Both companies conveyed to each one otherwise in mark to grow and to stay in business. In general, companies merge because they need to cut expenses or to complement in developing radical intersection points. HP acquired Compaq in 2001 and door acquired eMachines in 2004. That is why IBM cute and needed to cooperate with another(prenominal) company, too.

It do a intellectual decision in cooperating with Lenovo because Lenovo was a strong brand in Asia and a market attraction in China. A market leader is defined as roughlybody who has the largest market share and commonly leads in price changes, new-product introductions, statistical distribution coverage, and promotional intensity (Kotler/ Keller, marketing Management, page 299). This joint-venture mingled with IBM and Lenovo is a very strong one because IBMs products sop up a good news report and both can hurt nark to new crowing markets (IBM in Asia and Lenovo word-wide).There is a co-branding when two or to a greater extent well-known brands are have into a joint product or marketed together in some fashion (Kotler/ Keller, Marketing Management, page 344). Co-branding can...If you want to get a full essay, rig it on our website: Ordercustompaper.com

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