Case study 3 Lenovo’s success
What explains Lenovo’s success prior to the acquisition? What challenges did Lenovo face after acquisition?
Lenovo, previously known with the name of Legend, evolved to become China’s leading computer firm. Before the acquisition of IBM, Lenovo was focusing and targeting the Chinese markets. In order to meet the needs and the wants of the Chinese customers, Lenovo (Legend) was able to innovate and satisfy the market. Indeed, in 1987 the company introduced an original product, the Legend Chinese-character card. This card can translate English-language operating systems into Chinese. I think this was a huge factor that impact positively the popularity of Lenovo in China. Moreover, the company was innovative in term of technology (Chinese voice-recognition software and graphics pad for writing Chinese characters by hand). All these reasons permitted Lenovo to have a great position in the market share.