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In the modern business world, many companies dream to become world leaders. However, such goal demands a variety of hard work and costs a lot for its creators due to the fact that new market can have several unexpected issues. For instance, cultural differences may create sufficient problems for the successful international market entering strategy. In addition, in some cases, new market demands from a company to build its reputation among potential buyers from the beginning. As a result, it will lose time as well as normal income. Truth be told, there are several strategies in order to enter a specific international market. Nevertheless, I decide to use Lenovo as a sample company for this paper; therefore, its own strategy is presented there.
Important Facts of Lenovo’s International Market Entering Strategy
There is no denying the fact that nowadays Lenovo is a well-known international company. However, it had to implement a lot of important strategies and improvements in order to achieve such fascinating results. To begin with, after becoming a famous and successful brand in China, Lenovo’s executive board decided to expand its influence to the international market. They chose an acquisition strategy and bought the IBM PC division for getting access to the Western market. But such decision had both positive and negative sides that are listed as follows. IBM had a huge respect among its buyers; thus, this acquisition brought to Lenovo new customers. In order to satisfy their needs and become stronger at the U.S. PC market, Lenovo continued to sell ThinkPad brand PC and laptops. However, such decision did not bring effective results, because many customers were aware of this acquisition and prefer to buy another Western brand instead of Chinese one. Nevertheless, company could find a solution and developed IdeaPad brand. It was created for low-cost segment of the market and its target audience was young and active people. Such decision helped to strengthen company’s position on the Western market.
As sufficient problems of such strategy I should mention cultural differences between American and Chinese teams. Such situation created a variety of issues and misunderstandings inside this company. Despite their difficulties, Lenovo’s executive board could solve all of them and transit it to the successful international leader with a strong multinational staff.
There is another factor that deserves some words here. In order to become stronger player on this market, Lenovo decided to be a technical sponsor of some huge events. For instance, it implemented this strategy by participating at Olympic Games in Turin and Beijing. As a result, it became more attractive for new potential customers as well as showed that its leaders also think about other society’s issues.
Results of Lenovo’s International Market Entering Strategy
In fact, an acquisition strategy is a popular one among many Chinese companies in order to enter an international market. However, this strategy is also too risky and it turned into completely disaster in many similar cases. Despite this fact, Lenovo was able to achieve great results and become a world PC leaders among other international companies nowadays ("Lenovo: Best and Worst Laptop Brands"). Moreover, its executive board transformed two professional teams with a variety of cultural differences into one unique mechanism as well as built an international working environment across all its headquarters. Taking into account all of these factors, I may reach the conclusion that this acquisition strategy was the best decision for Lenovo’s board in order to emerge on the international market.
Works Cited
"Lenovo: Best and Worst Laptop Brands". Laptopmag.com. N.p., 2016. Web.
