lenovo
TRANSCRIPT
DECLINING MARKET SHARE OF LENOVOEfforts: (GROUP A1) Amit Goyal Amit Singh Devendra Kashyap Harwant Singh Margaret Rajeshwari Murchana Borthakur Prateek Agarwal
EXECUTIVE SUMMARY
Lenovo group limited was incorporated in the year 1988 in Hong
Kong. it is a multinational personal technology company that deals in
development, manufacture and marketing of desktops and notebook
computers, workstations, servers, storage drivers, IT management
software and other related products and services. Lenovo’s main competitors in the Indian subcontinent are Apple,
Sony, HCL, HP, Asus, Toshiba amongst others. Over the last two
years, the market shares of Lenovo have fallen considerably in the
Indian market. The objective of this market research is to determine
the causes behind this fall. We discuss the qualitative research
required to ascertain the causes behind the low market share of
Lenovo. Data collection sources for primary and secondary data are
mentioned and discussed in detail. A detailed report will be presented at the end of the market research.
ABOUT LENOVO
LENOVO GROUP LIMITED is a Chinese multinational personal technology company founded in 1984 by Liu Chuanzhi.
Lenovo was incorporated in Hong Kong in 1988.
Yang Yuanqing is the current chief executive officer of Lenovo. Yang was a chairman of Lenovo's board from 2004 to 2008.
Lenovo’s principal operations are currently located in Morrisville, North Carolina, Beijing, China and Singapore and employees 26,341 people all over the world.
ABOUT LENOVO
Lenovo develops, manufactures and markets desktop and notebook computers, workstations, servers, storage drivers, IT management software, and other related products and services.
It is a global Fortune 500 company with a special focus on personal computers with annual sales of over $21 billion.
Lenovo became the world's second largest supplier of personal computers in the world during the third quarter of 2011.
SWOT ANALYSISSRENGTH
•R&D Dept.
•manufacturing capacity
•International Presence
WEAKNESS
•Low customer acquisition rate
•Inadequate after sale service
OPPORTUNITIES
•Growing wireless PC market
•New and Better Means Of
Advertising
•Improvement in Features and
Technology
THREATS
•Intense competition
•External changes (government,
politics,taxes, etc)
•Product substitution
•Software piracy
PORTER’S FIVE FORCES MODEL
The five forces are:
1. Rivalry within the industry.
2. Bargaining power of supplier.
3. Bargaining power of customers.
4. Threats from new entrants.
5. Threats from substitutes.
PORTERS FIVE FORCE MODEL Rivalry among competitive firms
There is a huge competition in the laptop industry, nowadays
companies are offering not only good quality products at low
price but also one year on-site warranty. For example, to gain
market share Dell, for the first time in India, offered
customized laptops with accidental warranty, at a price which
the customer was willing to pay. So to make the difference
different companies are trying to give better product with
better service facilities to the customer at low price.
PORTERS FIVE FORCE MODEL Potential entry of new competitors
Potential entry of new competitors is also a factor which
intensifies the competition in the industry. Despite numerous
barriers to entry, new firms sometimes enter industries with
higher-quality products, lower prices and substantial marketing
resources.
PORTERS FIVE FORCE MODEL Potential Development of Substitute Products
The laptop industry is facing a significant threat from new
products and technologies like ultrabook, netbook, tablet
etc. which ultimately reduce the need for laptops by
providing almost the same functionality , better design, easy
to carry at low price.
PORTERS FIVE FORCE MODEL
Bargaining power of suppliers
Suppliers play an important role in production of good and services,
better the raw material better the final product. Manufacturer needs
to build relationships with the supplier to improve the quality and
reduce the prices of the products.
Example:
Dell computer known for best quality computer, laptop and server
manufacturer in the industry. The key behind dell success is
maintaining better relationship and collaboration with the supplier
of computer hardware and software.
PORTERS FIVE FORCE MODEL Bargaining power of consumers
Consumers are the final user of the products, performance of the
companies totally depend upon the consumers. Bargaining power
of consumers is more when there is number of players in the
market and providing better quality at low price.
OBJECTIVE OF RESEARCH
To identify the right type of audience for the laptops.
To identify the internal and external features consumers look into the laptops.
To explore the market psychology of the laptop consumer prior to purchasing the commodity/ Market features such as price will be considered.
APPROACH TO THE RESEARCH
The research will be conducted through qualitative research
technique in order to get the insights of the customers. Further a
quantitative research will be conducted in order to verify the
findings of the qualitative research. This research will be carried
out through various sampling techniques to explore and
understand the preferences of potential customers towards the
brand.
RESEARCH DESIGN
Secondary data:
The required secondary data will be collected through
business magazines, publications and web-sites and through
previous research reports.
Primary data:
The primary data will be collected through structured close
ended questionnaire and the sampling size for the
questionnaire will be 50 focussing on the NCR region.
REPORTING
After 1 week the progress report will be discussed with the
company and we will try to get the feedback in order to maintain
the authenticity of the final report. Once this has been approved,
there will be a formal presentation of all information collected
through research, along with conclusions drawn.Data collected
through primary research will be submitted to the company with
the final report.
RESEARCH SCHEDULE
Fieldwork ……………...8th March, 2012 Research analysis………13th March,
2012 Final report by…………22th March, 2012 Final presentation………30th March 2012
ESTIMATED COSTPhase Description Fee
Secondary Research Purchasing of Business magazine, journals,
Rs. 2000
Primary Research e-mails, telephone, FGD, Depth interview Charges
Rs.8000
Other expense Stationery charges Rs.2000
Total Fee Rs. 20,000