Lenovo Case Analysis Essay

Competing at a orbicular scale requires profound differentiatemark equity. Lenovo is a well-known fall guy in China (as Legend) only it cannot become a global technology giant like Dell or Hewlett-Packard, by merely acquiring the Personal Systems Division of IBM, whose products are popular crossways the domain of a function. Normally, the key challenge in establishing global crosss lies in devising the demeanor in which a familiarity can position its check offs in nodes mindsets, patch taking into account global competition that comes from national and international suppliers (Wright, Millman & angstrom unit Martin, 2007, p. 139). Lenovo has to engage in intelligent marketing to attract consumers and found itself a force to reckon with in the global personal computer industry. check to the case study, the global PC industry is mellowedly competitive with the prima(p) performers world Dell, HP, Lenovo and its IBM eruditeness, and Acer and Fujistu-Siemens among oth er corporations and vendors locked in tight competition (Quelch & axerophthol Knoop, 2006, p. 2-3). Therefore, Lenovo has a daunting task to create gull equity to din at a global scale. The Key IssuesThe issue that Lenovo is principally debateings with is how it can effectively gain into the global market, where it is not only seek against the competition, but is also dogged by an incredulous market. On the surface, the deal between Lenovo and IBM seems to give the former a platform for success callable to the complementary nature of the operations of the two firms and beca role the deal facilitates the expansion of Lenovos operations from China and Asia to over 138 countries in the world, where IBM is established (Quelch & vitamin Aere Knoop, 2006, p. 6). However, in a marketing research that the alliance conducts among 4,000 IBM customers, the concerns raised are that the innovation, gauge, and supporter and support are going to be negatively impacted by the takeover o f IBM brands by Lenovo (Quelch & Knoop, 2006, p. 9). The grievances held by the consumers are a major undo to Lenovos attempts to create rugged brand equity.The criticism shows that the customers restrain negative brand knowledge ab verboten Lenovo. Brand knowledge consists of brand awareness and brand picture show (Wright et al., 2007, p. 140). Normally, brand knowledge determines the directions that the brand takes and, in turn, this influences the decision that marketers take in creating a brand promise, which entails informing the humans about the positive essence of the brand and its purpose (Kotler, 2012, p. 115). The competition moldiness be addressed seriously through a brand promise, with strong product dimensions. A brands dimensions polariate an carrying from other offerings that are aimed at satisfying the same need by either emphasizing on product surgical operation by introducing functional, rational, or visible differences or by emphasizing the symbo lic, emotional, or intangible factors (Kotler, 2012, p. 114).Lenovo has the chance to give the brand equity creation process that emphasizes on the product performance in the phase of introducing itself into the global market, while intending to rely on the last mentioned dimension in the long run. Brand equity is created by good satisfying the presence, relevance, performance, advantage, and bonding dimensions, in an increasing order of importance (Kotler, 2012, p. 116). punishing consumer loyalty is happen upond after the firm attains a market share. Companies acquire a share of the heart and a share of the mind of customers by being authentic and genuine, aspects, which lead to higher, market share and profitability (Kotler, 2012, p. 135). As a great deal as the chief marketing officer of Lenovo states that stigmatization is a blood issue rather than a marketing issue, the brand is a issue of the perception created by products substance and marketers efforts.Alternative Co urses of workThe courses of action that can be taken by Lenovo include establishing a outperform brand, a house of brands, synergy improvement, or the strategy referred commonly as Lexus/Toyota. First, the operate brand strategy can be recyclable for creating a brand equity for Lenovo on a worldwide scale, but there are fears that the ThinkPad influence may be lost if this strategy is adopted. Second, the house of brands climb can enable the firm to establish umteen brands at once, but it is expensive to market the different brands. Third, the synergy approach will let the society have Lenovo as a master brand, while the ThinkPad shall be regarded as a superior sub-brand. Fourth, under the Toyota/Lexus strategy, a premium line of ThinkPad brands are established alongside basic Lenovo brands (Quelch & Knoop, 2006, p. 9). Evaluation of the Alternative Courses of ActionThe course of action that the fraternity should read has to address the global market conditions, w hile also upholding Lenovos craving to compete internationally. To gauge the conditions in this market surroundings, the companionship engages in all-embracing marketing research. The research comes in handy in helping the company to make well-informed decisions, to understand the marketplace, and most importantly, to learn about customer satisfaction and the value of goods on offer. In addition, the advantages of the primary data self-contained are that the respondents pinpoint their challenges concerning the use of personal computers in business, give example to current concerns, and enable the firm to gauge the needs in different nations.The master brand option is challenging to Lenovo since the market regards it as untrust model(prenominal). The high level of dishonesty with which Chinese firms are regarded in the rest of the world is a major detractor to the success of this strategy (Quelch & Knoop, 2006, p. 8). If this approach is chosen, building favorable brand know ledge would not be an slatternly thing for Lenovo, in spite of having the reputable ThinkPad brand at its disposal. The ThinkPad acquisition doubtlessly makes Lenovo have a comparative advantage in the global scope. The ThinkPad has already won a lot of accolades for design and engineering innovations since it was introduced in 1992, with whatever of its superior qualities being power, portability, and wireless networking (Quelch & Knoop, 2006, p. 6).The marketers in Lenovo must wherefore create positive brand knowledge if they choose this option. Failure to achieve this means that even the premium ThinkPad brand shall be thought of as an inferior product by consumers. The house of brands option would make the company incur a lot of expenses in the marketing function, without necessarily achieving the delectable sales of any of the brands. The companys CMO concedes that this strategy cannot succeed since the company had limited resources at the time (Quelch & Knoop, 2006, p. 9). House-of-brands has brands that are independent, which are moderately endorsed by the compositional brand (Rajagopal & Sanchez, 2004, p. 238). However, the reputation of the Lenovo as an organization in the international market is not favorable at this marijuana cigarette hence it cannot promote brands effectively.The synergy approach, which entails a master brand acquiring recognition partially due to a superior sub-brand, would require investments to collectively build the Lenovo and the ThinkPad brands (Quelch & Knoop, 2006, p. 9). The ThinkPad sub-brand would be expected to be a co-driver in the success of Lenovo. The shortcoming of this approach is that the association might taint the image of the prestigious brand if the brands do not have comparable qualities (Aaker & Joachimsthaler, 2000, p. 15). Clearly, ruining of the ThinkPad brand will certainly end up undoing the entry of Lenovo into the global market. The Toyota/Lexus strategy will force Lenovo to establish opulence and mass market brands separately. This strategy will entail implementation of dissociated brands, with each expected to perform well within its segment. However, under the global environment into which the firm is entering, creation of a mass product is not feasible.The use of PCs has become ubiquitous and consumers are looking for enhanced innovation, wear out quality and reliability, tighter security, and better design (Quelch & Knoop, 2006, p. 10). To offer customers the desired product, the firm was suppose to invest in enhancing computer products, rather than producing low quality dirt cheap products. As a result, this strategy can make the company leave out its core business. After withdrawing all the branding strategy options, Lenovo managers should appropriately consider the category rank and file under competitive frame of reference. Category membership refers to the products with which a brand competes and which are close substitutes to it (Kotler, 2012, p. 130).The managers should to establish points of differences that would make the company have a competitive edge. At the present, Lenovo pursues a legacy of customer direction, innovation, and dependability (Quelch & Knoop, 2006, p. 7). These aspects have a potential of reservation make the products it offers distinctive and superior in comparison to competitors in the global market. The focus of the company should be on long-term holistic performance of its products. A well established brand value drives brand loyalty among customers, making the company to enjoy security of demand, making it hard for impertinently competitors to enter the market, and making the customers willing to pay a higher prices for the offering (Kotler, 2012, p. 114). The better Course of ActionAccording to the facts presented in the case, the adoption of Lenovo as a master brand is the best course of action. Though this alternative is risky, it is worthy because of the ultimate go od image it would create for all the brands on offer at a global scale. Making Lenovo a master brand helps to make the core products of the company to the entire world. Master or family branding is where a family brand is associated with several brand extensions. The use of the companys brand name across the entire products range lowers development be and boosts sales if the incarnate image is associated with innovativeness, expertise, and reliability, which are factors that influence consumer evaluations directly (Kotler, 2012, p. 123).The company actually chooses to use this strategy with great level of ingenuity. The first global advertising campaign is signed off with ThinkPad, the second campaign emphasizes that Lenovo is doing better than IBM by improving the ThinkPad, while the third campaign stresses that the Lenovo master brand represents innovation (Quelch & Knoop, 2006, p. 10). Introduction of brand extension is facilitated under the master brand. New products that a re introduced as brand extensions often succeed because the customers expectations of the new product are based on their knowledge about the promote brand and how relevant they find the information (Kotler, 2012, p. 123).Any product change under an umbrella of a brand name develops an identity out of the customers perceptions of the product, the marketing activity, word-of-mouth marketing, and the individual psychological set of customers (Wright, et al., 2007, p. 140). In effect, corporate brand endorsement in the international markets reassures consumers and is an integrating force, which unifies different brand identities on a global scale (Rajagopal & Sanchez, 2004, 246). Assurance that consumers earn from the product is vital for successful marketing. Moreover, brand equity is leveraged in a new context if the master brand makes the product more kindly to customers and its positive associations are relevant and appropriate (Aaker & Joachimsthaler, 2000, p. 18). With t he master brand strategy in place, continuous success of the Lenovo brand and its extensions is guaranteed.ReferencesAaker, D. A. & Joachimsthaler, E. (2000). The brand relationship spectrum The key to the brand architecture challenge. California Management Review, 42(4), 8-23. Kotler, Philip. (2012). A Framework for Marketing Management,P. Kotler and K. L. Keller (Ed). Upper Saddle River, NJ Pearson education Inc. Quelch, J. & Knoop, C. (2006). Lenovo Building a global brand. Harvard Business School. Rajagopal & Sanchez, R. (2004). Conceptual psychoanalysis of brand architecture and relationships within product categories. Brand Management, 11(3), 233247. Wright, L. T. Millman, C. & Martin, L. M. (2007). look issues in building brand equity and global brands in the pc market. Journal of Marketing Management, 23(1-2), 137-155.