Lenovo Goes Global - Essay Example

This was a process of learning of a way in which the multinational company should operate in order to succeed. In a result of this experience, the company has surpassed such global players on the PC’s market as Dell and Hewlett-Packard Company (Holstein, 4). Lenovo’s sales have almost doubled in 2014 compared to 2008 and reached $39 billion. This success was partially attributed to the company’s Mergers & Acquisition strategy. The company has successfully entered many foreign markets by acquiring local players.

One of the most recent acquisitions was the handset division of Google and IBM’s low-end server business in China (Holstein, 4). Another success factor was attributed to the company’s capability to develop a global network. Lenovo has developed effective HR strategies based on the global approach, adopted global management principles, and created a network-oriented enterprise. Also, the company has managed to transform its ineffective and costly supply chain into a highly integrated, cost-effective, flexible and competitive supply chain system.

In order to achieve this, Lenovo’s management has eliminated excessive elements and policies, have developed an effective system of performance measurement, and provided extensive training to its top managers. Lenovo has also adopted “out of box” thinking culture and against all the stereotypes have reestablished electronics assembly in the United States (Holstein, 6). Despite the fact that the workforce in the US was more costly than in China, Lenovo has managed to gain a structural cost advantage over its competitors and to offer better price to consumers.

Moreover, the company has kept all its “know-how” and other innovative ideas in-house, while other companies were outsourcing their brains to manufacturing firms (Holstein, 7).