Positioning, Repositioning, Reverse Positioning Strategies Case Study

LENEVO IN INDIA: FACING POSITIONING DILEMMA

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Abstract:
Lenovo, after acquiring the IBM's PC (personal computer) division, entered into the Indian PC market. IBM had expertise in selling its PC's to the corporate segment, so it was positioned as a major player in this segment. But, Lenovo was known for manufacturing low-cost PC's, so, handling brands with different positioning was a difficult task. Moreover, the company had to assure that the image of IBM in the Indian PC market would not get diluted. The Indian PC market was significantly dominated by the grey markets in the retail segment (household desktops), where the assemblers held more than half the market share. This segment was also price sensitive, and customers wanted more features at a low price. The case analyses the Indian PC market in general, and provides the strategies taken by the major players. It also gives scope for discussing, whether Lenovo should aim for the consumer or the corporate segment, or both.

Pedagogical Objectives:

Keywords :  Lenovo, India, Indian PC (personal computers) market, Positioning, Market share, Grey market, Assemblers, IBM, HCL Infosystems, Hewlett Packard (HP), Compaq, Consumer PC, Corporate PC, Small office home office (soho), Brand dilution