Achieving and Sustaining Growth at Lenovo

The Company has ranked behind only two companies – Hewlett Packard and Dell in profitability for 2006. However, customer perception of the Company does not appear good on certain issues such as installation, after sales service and availability of credit, based on a survey conducted as a part of this research effort. Lenovo must improve on these aspects, as well as build upon its success factors in order to sustain its current levels of growth.
Japan, the United States and Europe represented the majority of global production and sales of computers and related products during the 2000s. One division of the computer industry is Personal Computers – which are systems with inbred processing facilities embedded in one silicon chip, and these computers are primarily intended for single users. Personal computers first appeared in the 1970s with Apple II being introduced in 1977. IBM PCs became competitive in 1981. (Snapshot). The two major types of personal Computers are PC and Macs, which are Personal Computers manufactured by the Apple Company.
In the computer industry, Japan and the United States were the largest supercomputer manufacturers. Mainframe sales dropped in the 1980s and 1990s due to the development of client/server technology, with mid-range systems developing in the 1990s. With increasing sales, IBM and Hewlett Packard emerged as the major players and Hewlett Packard’s partnership with Intel has facilitated its growth in the marketplace (Snapshot).
With an increase in globalization, smaller, cheaper, standardized systems like PCs have been gaining popularity. In an effort to improve sales volumes and reduce costs, PC companies have been entering into networking arrangements with other companies to share research and development costs. One example is that of Microsoft and Intel that worked together to develop the Net-PC and NEC’s PC operations with Packard Bell, forming a new venture known as Packard Bell-NEC (Snapshot).&nbsp.&nbsp.