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1、Lenovos International StrategyStep 1:Abstract:In the 21st century, the globalization has become an unconvertible objective reality and“global thinking, global acting ”has already been a rule for multinational companies to observe. For most Chinese companies that have been or is going to be internati
2、onal companies, there is only one way to become a “visionary company” and gain lasting competitiveness : that is to involve themselves in the globalization trend and face the challenge in the future positively. The Lenovo Group has been an vanguard for the Chinese IT companies, and after its acquisi
3、tion of IBM PC division, Lenovo has become an important PC manufacturer.The purpose of this paper is to revelatory and indicative to the New Lenovo and other companies that desire to become great global companies through deep study of the success and failure of Lenovos international practices during
4、 the past twenty years.Introduction:Origins:The company was founded in 1984 by a group of eleven engineers, headed by Liu Chuanzhi, in Beijing. Originally known as Legend Group Ltd and New Technology Developer Incorporated, the listed holding company was incorporated in 1988 in Hong Kong. The compan
5、y had become the biggest PC manufacturer of domestic and distributed third party products through its wholesale business.The company underwent restructuring and separated into two entities. They were Lenovo and Digital China Holdings Limited. Lenovo became the personal computer manufacturer and Digi
6、tal China took on the wholesale and distribution of IT products and services.In 2005 Lenovo purchased IBMs PC Division which transformed it into a major international personal computer manufacturer. Lenovo paid $1.27 billion to IBM which consisted of $655 million in cash and $600 million in Lenovo s
7、tock. As a result of the acquisition, Lenovo gained the rights to the product lines as well as licensed trademarks such as ThinkVision, ThinkPad, ThinkVantage, ThinkCentre, Aptiva, and NetVista. As of May 1, 2005, IBM owned 19.9% of Lenovo.development：1980s1981: IBM PCD introduces its first personal
8、 computer, the IBM PC. 1984: IBM PCD introduces its first portable computer, the IBM Portable PC, weighing 30 pounds. With an initial capital outlay of only RMB300,000 (US$30,000) Lenovos founding chairman Liu Chuanzhi, together with 10 like-minded colleagues, launches the New Technology Developer I
9、nc. (the predecessor of the Legend Group) funded by the Chinese Academy of Sciences. 1986: IBM PCD announces its first laptop computer, the PC Convertible, weighing 12 pounds. 1987: IBM PCD announces the Personal System/2 personal computer. Legend successfully rolls out the Legend Chinese-character
10、card. 1988: Legends Chinese-character card receives the highest National Science-Technology Progress Award in Peoples Republic of China. Legend Hong Kong is established. 1989: Beijing Legend Computer Group Co. is established. 1990s1990: The very first Legend PC is launched in the market. Legend chan
11、ges its role from that of an agent for imported computer products into that of a producer and seller of its own branded computer products. Legend PCs are ratified and accepted by the China Torch Program. 1992: IBM PCD introduces ThinkPad series, the industrys first notebook with a 10.4 inch color Th
12、in Film Transistor (TFT) display and a TrackPoint (red ball) pointing device. Legend pioneers the home PC concept and Legend 1 + 1 home PCs enter the Chinese marketplace. 1993: Legend enters the Pentium era, producing Peoples Republic of Chinas first “586” PC. Legend establishes 1+1 retail network.
13、1994: IBM PCD introduces the industrys first notebook with integrated CD-ROM, the ThinkPad 755CD. Legend is listed on the Hong Kong Stock Exchange. The Legend PC business division is formally established. 1995: IBM PCD introduces the “butterfly” keyboard. Lenovo moves from Boca Raton, Florida, to Ra
14、leigh, North Carolina. Legend introduces the first Legend-brand server. 1996: Legend becomes the market share leader in China for the first time. Legend introduces the first Legend brand laptop. 1997: IBM PCD introduces the industrys first notebook equipped with a DVD-ROM, the ThinkPad 770. Legend s
15、igns an Intellectual Property agreement with Microsoft, the most valuable deal ever made in China at the time. Legend launches the first multi-function laser printer. 1998: IBM PCD introduces the ThinkLight, a small light that illuminates the keyboard for use in low-light work environments, such as
16、aboard an airplane. The millionth Legend PC comes off the production line. Intel Chairman Andy Grove attends the ceremony, and takes the PC for Intels museum collection. Legend establishes the first Legend Shop. 1999: IBM PCD introduces the industrys first sub-notebook, weighing under three pounds, with standard ports and a keyboard that is 95 percent the size of full-size keyboards. Lenovo announces its exit from the retail busi
