Lenovo Case Analysis

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Lenovo Case Analysis
Competing at a global scale requires profound brand equity. Lenovo is a well-known brand in China 
(as Legend) but it cannot become a global technology giant like Dell or Hewlett-Packard, by merely 
acquiring the Personal Systems Division of IBM, whose products are popular across the world. 
Normally, the key challenge in establishing global brands lies in devising the manner in which a 
company can position its brands in customers’ mindsets, while taking into account global competition 
that comes from national and international suppliers (Wright, Millman & Martin, 2007, p. 139). Lenovo 
has to engage in intelligent marketing to attract consumers and make itself a force to reckon with in 
the global personal computer industry. According to the case study, the global PC industry is highly 
competitive with the leading performers being Dell, HP, Lenovo and its IBM acquisition, and Acer and 
Fujistu-Siemens among other corporations and vendors locked in tight competition (Quelch & Knoop, 
2006, p. 2-3). Therefore, Lenovo has a daunting task to create brand equity to thrive at a global scale.
The Key Issues
The issue that Lenovo is principally dealing with is how it can effectively enter into the global market, 
where it is not only struggling against the competition, but is also dogged by an incredulous market. 
On the surface, the deal between Lenovo and IBM seems to give the former a platform for success 
due to the complementary nature of the operations of the two firms and because the deal facilitates 
the expansion of Lenovo’s operations from China and Asia to over 138 countries in the world, where 
IBM is established (Quelch & Knoop, 2006, p. 6). However, in a marketing research that the company 
conducts among 4,000 IBM customers, the concerns raised are that the innovation, quality, and 
service and support are going to be negatively impacted by the takeover of IBM brands by Lenovo 
(Quelch & Knoop, 2006, p. 9). The grievances held by the consumers are a major undoing to 
Lenovo’s attempts to create strong brand equity.
The criticism shows that the customers harbor negative brand knowledge about Lenovo. Brand 
knowledge consists of brand awareness and brand image (Wright et al., 2007, p. 140). Normally, 
brand knowledge determines the directions that the brand takes and, in turn, this influences the 
decision that marketers take in creating a brand promise, which entails informing the public about the 
positive essence of the brand and its purpose (Kotler, 2012, p. 115). The competition must be 
addressed seriously through a brand promise, with strong product dimensions. A brand’s dimensions 
differentiate an offering from other offerings that are aimed at satisfying the same need by either 
emphasizing on product performance by introducing functional, rational, or tangible differences or by 
emphasizing the symbolic, emotional, or intangible factors (Kotler, 2012, p. 114).
Lenovo has the chance to utilize the brand equity creation process that emphasizes on the product 
performance in the phase of introducing itself into the global market, while intending to rely on the 
latter dimension in the long run. Brand equity is created by thoroughly satisfying the presence, 

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relevance, performance, advantage, and bonding dimensions, in an increasing order of importance 
(Kotler, 2012, p. 116). Profound consumer loyalty is achieved after the firm attains a market share. 
Companies acquire a share of the heart and a share of the mind of customers by being authentic and 
genuine, aspects, which lead to higher, market share and profitability (Kotler, 2012, p. 135). As much 
as the chief marketing officer of Lenovo states that branding is a business issue rather than a 
marketing issue, the brand is a matter of the perception created by product’s substance and 
marketers’ efforts.