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1、1.The introduction of the company Lenovo is an international high-technology company full of creativity. As the leader in the global market of Personal Computer, it develops, manufactures and sales technological products and provides services. The main commodities from the company include desktops,
2、laptops, printers, palmtops, main board and cellphones and so on. Because of the good quality of its products and services, Lenovo has had rapid development over the last several years and become one of the four largest manufacturers of personal computers.As the largest technology company owning the
3、 largest sales volume in the mainland of China, Lenovo joined venture with Nippon Electric Company(NEC) in 2011, and built an the Joint Venture Company named Lenovo NEC Holding B.V. in Holland. NEC, founded in 1899, was a Japanese company producing electric equipments such as information technology
4、products, semi-conductors and electric devices. In the joint venture company, Lenovo owned 51% share and NEC owned 49% of that. Both of them put their service of Personal Computers in Japan into the joint venture company, so that they collaborated with each other in the production, development and s
5、ale of the products. Lenovo Group also provided NEC with extra shares worthing 17.5 billion dollars. The joint venture company focused on the services of personal computers and attempted to increase the market share in the globe and compete with other powerful high-technology companies. This essay e
6、laborates the relationship between Lenovo and NEC, and then analyzes the objectives of the collaboration, its structure and management, the operational and financial performance against its objectives, and in the end concludes the influence of the collaboration on the company. 2.The collaborative re
7、lationship between Lenovo and NEC The new joint venture company undertook the development, production and the purchasing of components of personal computers. Lenovo and NEC both developed, produced and sold products directly to customers, and the collaboration could be shown in the following chart.
8、JVC Supplying direct to customers NEC Lenovo Technology EquipmentComponentsMarketsTraining Component Revenues Profit shareLocal expertiseGovt AccessMarkets FacilitiesRevenuesProfit share JOINT VENTURE COMPANY(JVC) Manufacturing/Processing + Sales &Marketing Direct Sales - domestic & export The chart
9、 shows that by joining the venture, the two companies offered necessary element the joint venture company needed and the latter then made the most use of them. For instance, Lenovo could supply the technology, required equipments and components which could be made in China in order to reduce the cos
10、t. As for market, it has made the market share steady in the past years so that it lay the foundation for the products from the joint venture company. Besides, the new employees of the joint venture company were supposed to be trained in order to improve the working efficiency, which was also offere
11、d by it. On the side of NEC, its local expertise and advanced facilities contributed to the development of the products. But the most important were the government access and the Japanese market, which played an integral role when the products were sold to the Japanese consumers. With the sufficient
12、 conditions, the joint venture company developed and manufactured personal computers, and then sold them directly to consumers both domestically and overseas. After the sale, the two companies obtained the profit share from the joint venture company according to their shares.2.1 The objectives of th
13、e collaborationIn the global market, Lenovo has strong competitors such as Apple, Dale and Acer, which are the top three largest market leaders. In order to narrow the distance from them, Lenovo had to expand its market share in the world. NEC, the top company in Japan, owing the largest share of pe
14、rsonal computer shipments and enjoying a highly evaluated reputation, could help Lenovo to enlarge it. According to the data of the market share of Lenovo and NEC by Personal Computer shipments in 2010 from Morgan Stanley, International Documentation Center(IDC), Lenovo reached the volume of 16 mill
15、ion units in Japan, taking up 6% of the total shipments while NEC takes up 20%. But in China, the shipments of Lenovo were 65 million units, occupying 28% while NEC had no market there. In the global market, Lenovo shipped 346 million units, owning 9.9% and NEC owns 0.9%. Based on the statistics, the collaboration of the two companies can contribute to the market share expansion of Lenovo in Japan. And Morgan Stanley also indicated that the joint venture can increase the personal computer shipment rate by 6% to 7% as well as the rate of sales volume by 10% to 12
