Lenovo Group Limited is experiencing challenges due to the competitive nature of the industry and global economic conditions. This case solution presents the marketing strategy, swot analysis, pestle analysis, and financial analysis for the company.
Craig Dunbar, Stephen R. Foerster, Ken Mark
Harvard Business Review (W13310-PDF-ENG)
July 26, 2013
Case questions answered:
- What is the Marketing Strategy of Lenovo?
- Prepare a Swot Analysis for the company.
- Compute the Financial Analysis for the following:
a. Profitability ratio
b. Liquidity Ratio
c. Leverage Ratio
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Case answers for Lenovo Group Limited - A Good Investment for the Fund?
This case solution includes an Excel file with calculations.
Introduction – Lenovo Group Limited
Lenovo Group Limited is one of the biggest manufacturers of computers in the world. Lenovo wants to become the largest manufacturer of computers in the world. As well, it intends to become a leader in other devices like tablets and smartphones. The company focuses on innovation as the critical capability to achieve its goals and objectives.
However, there are challenges experienced by the company due to the competitive nature of the industry and global economic conditions.
This case solution presents marketing strategy, swot analysis, pestle analysis, and financial analysis for Lenovo Group Limited – A Good Investment for the Fund case study.
Marketing Strategy of Lenovo Group Limited
The Marketing-mix model is a concept used by marketing personnel in Lenovo to optimize marketing strategies to attain the company’s goals and objectives. The factors considered by the company in enhancing its marketing strategy include proper product, appropriate pricing, good distribution plan, and effective promotional plan.
The company should use an exclusive product design, name, and features to satisfy customer’s needs in the competitive market. Lenovo Group Limited should consider factors such as improved services, brand name, variety, and quality when developing its product strategy. The company should develop products with relatively simple functions and relatively low prices to compete with other global companies like Hp and Dell.
Lenovo Group Limited should consider factors such as discounts, payment duration, credit terms, and the list price when drafting a pricing strategy.
The organization must set a relatively lower price than competitors. Discounted prices will be a critical factor in winning market share.
Distribution strategy is an essential element in marketing strategy. The company should decide whether it wants to reach its targeted clients through its channels, or it requires a distribution partner to contact the customer base. Furthermore, Lenovo Group Limited must consider whether it needs traditional and mortar distribution, online distribution, or both. The company must reflect on the product features, evaluate its capabilities and resources, assess the market dynamics, and analyze customers’ preferences. Lenovo should also study the distribution plan of its competitors to compare and contrast with its own distribution strategies.
Effective promotion is vital to Lenovo Group Limited when it comes to marketing strategy. The company can use radio, television, and print advertising to promote its products. Moreover, Lenovo should use direct mail, tradeshows, and catalogs for its campaigns.
The company should define its unique selling projection and understand the reason behind customers’ need for the product. The promotional message needs to be assessed to make the customer understand the need of the offered product. Lenovo Group Limited should use social media marketing to promote its products.
SWOT analysis for Lenovo Group Limited is essential because it will mirror the company’s competitive position in the industry. The company uses SWOT analysis to make strategic decisions.
- The company has various outlets as well as a strong distribution network to ensure products reach targeted customers.
- The relationship between the company and its dealers is strong. Therefore, dealers get supplies in time and focus on promoting the company’s products and training.
- The cost structure of the company is low, making clients afford the products.
- In recent years, Lenovo has been making profits; thus, accumulating profit reserves to be used in financing future capital expenditures.
- The company spends less money and time on research and development compared to its competitors leading to less innovative products.
- The current ratio outlining its capability to meet short-term financial obligations is…