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External analysis of Lenovo

Macro Analysis:

- PEST model analysis

- opportunities and

threats

Micro Analysis:

- Customer

- Industry

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Macro Analysis

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Political

1. Government encourage global business

2. China joined WTO

3. Government helps the industries increasethe production and interest.

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Economic

Positive :

1. In 2008, the GDP

increased

2. the IT market becomesbigger

3. US dollar decreaseeasy

to enter to America IT

market4. Low cost, can corporation

with IBM

Negative:

Influence by the economic

crisis

Market expending fee iscostly

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Society culture

China aspect

1. The population growth

2. the education level has

increased & high demand3. a huge market for Lenovo

4. The social culture of China

5. Adjust culture to match

IBM

Global aspect

1. The population growth

2. The education level has

Increased & high demand3. The globalization affection

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Technological

Positive :

1. Many scientists worked in

Lenovo

2. In 2004, Lenovo purchaseIBM, technology transfer

3. The communications costs

and increased technology

Negative:

1. Lenovo Lack of core PC skill

but IBM PC skill is high for

laptop2. Lack of innovation of new

products, eg, Apple

products

3. The personal computer isreplaced by such as ipad in

U.S.

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Legal

1. The government encourages legal power

2. The government encourages apply scientific

management method

3. Give the award to the organizations to

achieved or beyond the international

standard

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Ethical

1. The increased of education level.

2. Build a good reputation

3. Faith and good service

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Opportunities

China aspect

1. China joined WTO

2. Lenovo Purchasing IBMopen global market

3. Specialty shops providing

one stop platform for

distribution

Global aspect

1. Fast growing international

market

2. Increasing global demand3. Import barrier

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Threats

China aspect

1. Competitive rivalry that

exist in PC market globally

2. New entrants to themarket

3. Exposed fluctuations in

currency market world

wide4. High competition

Global aspect

1. Competition threats from

local and internationalcompetitor

2. Price war and mature market

3. US economy and the

dropping value of the dollar

4. International competitors

forming alliance with local

competitors

5. Threat of price competition

with clone PC makers

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Micro Analysis

Customer Analysis

Consumer Expectations-

-low

Consumer perceptions--low

Industry Analysis

Five forces analysis

Competitor

attributes: Dell, HPof PC

Supplier

substitute: Accer

Buyer

COMPETITIVE RIVALRY

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Potential entrants

Threat

of

entrants

power is

small

BuyersSuppliers

Bargainin

g power is

strong

Bargainin

g power is

strong

Substitutes

Threat of

substitutesis strong

COMPETITIVE

RIVALRY

(strong)

Five forces analysis

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Global market share

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External analysis Outcome

Market share

Asia market: market share 35.5% in china

America market: market share 7.5%

Europe market: on first 5th

Global market: DELL 12.0%, Lenovo 13.7%, HP

18.1%

Outcome: Lenovo has its market and customer, butstill need to improve cohesive ability for global

market.