Both firms nicely dovetail as partners with little in the way overlap in products, services or software. And one of the most usual problems that may lead to the failure of strategic alliance is that the deal later does not turn out to be beneficial to both parties. The company operates primarily in a single industry using several different segments that create value by offering a variety of solutions that include, technologies, systems, products, services, software, and financing 10-K report. International competitors forming alliances with local competitors Lenovo Competition Competitors Below are the 5 main Lenovo competitors : 1. Working with leaders Lenovo has the leading position in the fastest growing market in the world. Circuits Assembly, 16 2 Businessweek.
Yuanqing Yang, currently vice chairman, president and chief executive officer of Lenovo, will serve as the chairman of Lenovo post-transaction. In addition, Chinese government has pushed a Go Out policy in recent years, with the intension to encourage the local companies to develop overseas markets and to acquire the advanced technology and distribution networks, thus, the government holds a very supportive attitude towards the firms that intend to go globally Dickie and Lau, 2004a. Analyzing leading strategic opportunities, fast growth of netbook market, sustainable growth of emerging market and economy recovery are confronted. Chapter three describes the methodology that is applied in this research. Following the closing of the transaction, Lenovo expects customer service and product availability will continue as usual as the two companies' operations are integrated. With the transformation from a hardware vendor to a solution provider, it has entered the area of consulting services. The chairman further added that under this new strategy, Lenovos focus would be on promoting products that enhanced its image rather than on direct corporate brand-building.
What national sources of competitive advantage might Lenovo draw from its Chinese base? Thus, time issues and maintaining interest of the respondents are the particularly difficult aspects of electronic interview Morgan and Symon, 2004; Saunder et al. In order for a company to be successful, it needs to see outside its core. Research design is the general plan about how to get answers to the research question s , it isthe argument for the logical steps which will be taken to link the research question s and issuesto data collection, analysis, and interpretation in a coherent way Saunders, et al. There are many factors causing the failure of strategic alliance. Other reasons that are often cited for the alliances failure include lack of trust between partners, cultural conflicts, incompatible chemistry, unique risks inherent in strategic alliances, and lastly focusing on alliance formation rather than sustaining the alliance Gomes-Casseres, 1998; Kelley et al. We can see that Lenovo has taken several measures to ease the clashes and conflicts between the two companies, but it is still far from enough.
This area is reserved for members of the news media. However, as discussed above, it is difficult to maintain a long partnership and the failure rate reaches as high as 60 per cent, and it is even worse in a cross-border alliance due to culture clashes and trust issues. What disadvantages derive from its Chinese base? They are beneficial because it provides rich understanding of the context of the research and the process being enacted Morris and Wood, 1999, cited in Saunders et al. This goal can be achieved by constant training or education for the employees, making the employees involve in the organizations decision-making processes more deeply and extensively. Therefore, due to the uncertainties and ambiguities that typically pervade at the initial stage of an alliance, it is necessary view the early stage of cooperation as a period of mutual discovery, sense making and trust building for the partners and is a key stage to the success of alliances Kelly et al. Secondly, Lenovo was struggling to cutcosts and return its U.
Strategic Alliance: A Case Study of the Renault-Nissan Alliance. While diagonal strategic alliances are formed withpartners from other industries Bronder and Pritzi, 1992, p416. Contribution of 1 percent of its pre-tax income to the less fortunate people reflects their social responsibility to the society. As London 2005 suggests that because the Lenovo name is almost unknown outside of China, it is hard for marketers to build an international brand from scratch; in order to succeed, they not only need to decide what Lenovo stands for but also come up with products that support the claim. As such kind of alliance is the generally tendency in the near future, there needs more and deeper theoretical studies in this specific area.
Chapter five then examines the casein deeper insights from the analysis based on both the primary and secondary data towards thisalliance. Koza and Lewin, 1998; Arino et al. As Dickie and Lau 2004 point out that Lenovo could get access to some of the worlds most popular laptop designs, access to the U. Since 1997 the sales of Lenovo in China's domestic market topped the first, and in the Asia-pacific market in successive years except Japan. Besides that, the failure to build trust between partners in the early stage of thealliance could be detrimental to further development to the next stage.
Lenovo Numbers Fail to Win Over Sceptics. To sum up, creating and sustaining trust in collaboration is hard, and international alliancesmake it even harder as it involves with cultural differences and clashes in attitudes andassumptions. Secondly, Lenovo was struggling to cut costs and return its U. Establishing a sound inter-personal relationship through either formal or informal mechanisms could help to bridge the gap and accelerate the pace of trust building. Since the year 2003, Lenovo began to lay the groundwork for its global stretch. Child and Faulkner 1998 indicate that a partners capacity to learn is determined by a combination of the following factors cited in Aliyu, 2004, p. The whole co-branding thing not only arouses the negative reaction from the local customers, but also caused the brand confusion.
More often, cultural clashes resulting from the myth that once an alliance is established, the alliance will form its own hybrid culture can derail the prospect for synergistic benefit of the alliance Stafford, 1994, p. At the end of 2016,. The company was founded in 1984 by a group of 11 engineers. Figure 2 The historical trend of the Lenovo share price in Hong Kong Source: Thomson Datastream 4. Strategic alliance has become a favorable choice for many multinational companies as a strategy responding to rapid economic development and increasingly fierce competition in the global market Gulroy, 1993.