Lenovo Strategy Case Study Solution

Lenovo Strategy Case Study Solution

Company Overview 

Headquartered in Beijing, Lenovo was founded in the year 1988. Formerly known as Legend Holdings, it manufactures and develops varieties of electronic products (like smartphones, tablets, desktops, and laptops) for consumers. 

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Other business transactions carried out by Lenovo include the development of human resource management and technological advancement. As per experts, Lenovo holds the largest market share in China. It worked with IBM as a partner for technological procurement.

In 2005, it acquired a 175-million dollar personal computer business that helped Lenovo to establish itself as the third-largest computer manufacturer all over the world. 

Mission Statement of Lenovo 

We aim to place ourselves as one of the largest private electronic device manufacturers. We aspire to accomplish our goals by working in three main segments:

  • Lead in personal computers, and get recognized for product quality and innovation.
  • Get recognized as a trustworthy and reputed organization to work for, and collaborate with.

Vision Statement of Lenovo 

  • Lenovo strives to create personal electronic devices that people would love to own, a reliable, enduring business that’s well-respected worldwide.
  • It envisions a company culture endeared by its employees. 
  • Lenovo Way gets embedded in the statement: We keep our promises and own our things. 

Lenovo Integration 

Vertical Integration of Lenovo across its supply chain and procuring most of the equipment by itself helped the brand in keeping the cost low. It minimizes the dependence on OEM (Original Equipment manufacturers) and enables them in on-time availability of its products in the market. 

Presence across Laptop, Mobile, and enterprise business endeavors in over 170 countries. Lenovo not just gained benefits from a cross-culture exposure. It could formulate its marketing strategy accordingly. 

Marketing Strategy of Lenovo 

Closely working with IBM and other competent forces, helped Lenovo to acknowledge that the customers and market need to be targeted strategically. Subsequently, they are employing a differential strategy. 

Distribution Strategy in the Marketing Strategy of Lenovo 

Lenovo exports and makes its products accessible through wholesalers, franchise markets, retailers, and wholesalers all across the globe. 

The e-commerce site of Lenovo gained popularity with time. Lenovo makes its electronic devices and gadgets available across e-commerce sites. It helps them to reduce the cost of operations. 

Brand Equity in Marketing Strategy of Lenovo

Advertising its products through the World Cup, Olympics and other noteworthy platforms, Lenovo boosted brand awareness in the personal computer market. Gradually, they are improving brand recognition in the mobile market as well. 

BCG Matrix in Marketing Strategy of Lenovo

PC Market of Lenovo Group Limited is starred due to the versatile range of Laptops and SKUs available. Recently, Lenovo entered the fastest-growing mobile phone market. Henceforth, the company is not able to invest or capitalize on the opportunities. It is due to the

  • Less exposure to the Lenovo mobile business
  • The Smartphone industry is already loaded with businesses that are competing with each other. 

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Market analysis in Lenovo Marketing Strategy 

The Smartphone and PC Market is undergoing various technological disruptions where companies are gaining market shares and brand equity through Blue Ocean Technology.

It is disrupting the already established market giants. For instance, the wide acceptance of Samsung’s Android Smartphone helped it to capitalize on the opportunities. Consequently, Nokia lost its market leadership position. 

Differentiation Strategy in Lenovo Marketing Strategy 

The differentiation Strategy of Lenovo is based on persuading the customers that their products are better than those delivered by their competitors. Benefits that Lenovo Group gains from a successful differentiation strategy include: 

  • It can make above-average profits.
  • The demand or price of products manufactured by Lenovo will be less flexible than that of its competitors. 
  • It creates additional barriers to businesses willing to enter the markets.
  • Lenovo Group Ltd is planning to differentiate that will organize its blockchain activities. It wants to create a thought amongst consumers that the company is offering high-quality and value-based products. 

Focus Strategy 

Focus Strategy of Lenovo Group Ltd aims at a market segment for specific products, rather than the whole market. Benefits that Lenovo Group Ltd gains from a focus strategy include: 

  • It offers a greater knowledge and market insight into the segment that’s getting served.
  • The entry to a new market becomes easier and more cost-efficient. 

Marketing Mix 


One of the key factors of Lenovo Group Ltd is the balance between its price and brand equity. If the price of the products is too high, Lenovo will likely lose its consumers to companies like Hewlett Packard and Dell. 

Since Lenovo has a handful of competitive products, it follows a pricing strategy where fixed markup gets added to the product. 


Lenovo Groups Ltd always presented its product as the best choice for their customers that gets their job done. The company advertises its products through several BTS and ATS mediums so that it reaches out to the target audiences.


IT and the Computer-based market is unpredictable and has several challenges related to the industry. A company has to offer versatile and tech-savvy products to sustain and gain a competitive edge in the market. Product developments of Lenovo Groups Ltd evolve around an investigation and extensive research of the changing needs of consumers. 

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