Brands & Branding and Private Labels Case Study

Lenovo's Brand Building Strategies: Taking the Competition to Competitors with "Transactional Model"

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Abstract:
Neither China nor the Chinese companies can be any more ignored at any international business discussion. An oft-cited reason is Lenovo's acquisition of IBM's PC division that has revved up brand China. After that, Lenovo is busy building its own brand at the global level. This top PC-maker in China has served its home turf so well with its unique business model, dubbed the 'Transactional Model'. It is quite upbeat that the strategy will pay off globally too - catapulting it to the top spot. However, sceptics have their reasons; mainly that its top-3 rivals - HP, Dell and Acer - wouldn't let Lenovo topple them. The case study helps debate if Lenovo's 'Transactional Model' is suitable for other countries also, and if this model helps it combat global giants operating at a bigger scale. The case also helps discuss loopholes in Lenovo's model and how to fill them up.

Pedagogical Objectives:

The case is structured to help students understand:
• Competitive dynamics shaping the world PC industry
• Sources of competitive advantages in a highly commoditised industry
• Significance of brand building in such an industry
• Ways by which companies can overcome their legacy costs, when going global.

Keywords : Personal Computers, Mergers and acquisitions, Integration challenges, Brand Integration, Branding, Branding challenges, IBM, Lenovo, Brand building in consumer goods, Note Book Computers, Chinese PC Industry, PC Manufacturers, Global PC Industry, Brands and Branding Case Study, Brand Building Strategies