Essay On Lenovo

5. In trying to become a global brand, does Lenovo have a problem coming from China?

Exporting has become a very important business strategy nowadays. In order for firms to expand to the international market, and also to maintain and grow their share of market in whatever industry they are in, depending on their goals and objectives, any company must at least explore this possibility. A few and important advantages might come into place, in that they can extend their sales potential of their existing products, increasing margins through a larger customer base. Also, these small to large businesses can consolidate by gaining global share of market, they can reduce their dependence on their existing markets,

Business is continually growing on a global level leading to international business partnerships, agreements, and trades. During these types of business relationships disputes are common (University of Phoenix, n.d.). If a dispute occurs one party may chooses to take legal action against the other party. Making the decision to take legal action businesses must make considerations prior to proceeding. Making the right decisions can build a strong relationship between parties. Considerations to take include contracts, local law, and local customs and culture. Steps may be taken to minimize risks in international business agreements as well.

Starbuck risk management process involves internal and external analysis. Financial risks involve exchange rate related to international sales, price risk for raw materials, and supplies. Operational risks for international business run the risks of employee turnover, inability to find skilled employees, business process risk, including managing its supply chain, and information technology risk in automating

With every market-entry strategy there are always going pros and cons. First, with exporting, varies companies, from small to

Considering the conducted research and analysis, it can be clearly seen that the international strategy is not effective, that is why, needs to be fixed. Moreover, the company has a success in the local market, so it may be reasonable to put the efforts to promote inside the country.

There are a large number of activities (for example, doing research on the network, finding potential customers, selecting appropriate emerging markets, summarizing advantages of the product in the domestic market and so on) need to be involved in, and all of them are very important for the company at the pre-export stage. In other words, the pre-export behavior of the company should include the following points. Jansson and Soderman (2012) suggest that firms should focus on their domestic markets and accumulate enough experience, which are the cornerstone and quite useful for the firms to expand the international markets. Then, the firms need to select suitable markets by talking to local people or face-to-face communication. Furthermore,

Indirect exporting is when a company sells their product to a third party that will then sell that product to customers in foreign countries (2012). Strengths for this type of strategy are there is little financial commitment, the financial risk is reduced by using the third party, and there is a reduced risk that the future of the product or brand will look bad in the new market (2012). A limitation of this entrance strategy are the company has to rely on the third party to get customers and negotiate the sale prices for them (2012). Direct exporting is when the firm that is entering the market enters on its own and handles their own exports (2012). Strengths of this strategy are the company gets to handle their own exports, they have complete control, the company also has a greater amount of potential returns, and they can maintain a greater profit from their sales (2012). Limitations of this are there is a higher risk involved since the company is handling its own foreign markets, and there is a larger investment in not only money but time (2012). Licensing is when there is a relatively low link to risk that permits the company to enter into the market (2012). The strengths associated with licensing are no large capital investment, the company may be able to get around the restrictions and barriers a country can put up, and the company can charge a higher price for their product (2012). Limitations of licensing are

As a global leader in the PC market, Lenovo’s success rests on its ability to deliver consumer centric innovations in products that deliver a blend of mobility, performance and price. Design is an infrastructural element that helps define every aspect of a company, including Web site, stores, customer support, packaging, and messaging as well as its products. Lenovo has a well-earned industry reputation for delivering superior quality products. Quality is a fundamental component and commitment to customer satisfaction by delivering products that are of superior quality to comparable offerings from their competitors is the key to Lenovo’s success. In recent years, Lenovo relies heavily on local manufacturing strategies to shorten

This method also does not protect against any kinds of risks in the short or long term ei: exchange rate risk, opportunity cost of having the risk hedged and contingent exposure

Direct exporting is more expensive than indirect exporting. The entry cost & ongoing cost are high for direct exporting. In direct exporting a company have greater chances to build up good relationship. Direct exporting is used by many famous companies in toady’s competitive world as a source of entering new international market. SAMSUNG is also one of the companies who uses direct exporting as a source of Marketing Strategy. Direct exporting is cheaper as compared to other ways of market entering strategy and biggest benefit of direct exporting is it helps in acquiring the information of local market. Potential conflicts with distributors is one of the biggest disadvantage which a company can face in Direct

Foreign exchange risk is commonly defined as the additional variability experienced by a multinational corporation in its worldwide-consolidated earnings that results from unexpected currency fluctuations (Jacques, 1981). Multinational businesses exporting or importing goods and services or making foreign investments throughout the global economy are faced with an exchange rate risk, which can have severe financial consequences if not managed appropriately.

There are always business risk when it comes to expanding a company, especially from an international standpoint. There are many strategic risk that needs to be evaluated in order to expand the company successfully. Examining the possible risk of foreign currency exposure, basic functions of international banking/financial market, support of long term financing of operations, and assessment of opportunities that can be implemented within the company. There are risk on three dimensions of international finance, economic trends of the country, impact of globalization and monetary system. All of these situations will be discussed in this paper.

Thirty-three years ago, the founder of Lenovo founded the company with only 33,231 USD (converted from 20,000 CNY). 2 Nevertheless, Lenovo has become one of the Fortune 500 companies, and it is one of the largest PC manufacturers in the world, with a more than 20% market share, and around 43 billion revenues in 2016. 3 Over the past three decades, Lenovo has implemented numerous strategies to achieve such accomplishments. Since multinational enterprises often involve in

• Exporting requires significantly lower level of investment than other modes of international expansion, such as FDI. As you might expect, the lower risk of export typically results in a lower rate of return on sales than possible though other modes of international business. In other words, the usual return on export sales may not be tremendous, but neither is the risk.