Swot analysis of lenovo

Vrio analysis of hp

Lenovo currently ranks as 4th biggest tablets seller. This has reduced the costs of transportation, which is beneficial for lenovo as it will lower its overall costs. It makes Tablets, smartphones and smart TVs too. As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix. It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too. The fluctuating interest rates in the country do not provide a stable financial and economic environment. It has a skilled labour force that is highly qualified, innovative and diversified. As a result, it is making decisions based on 2 years old data, while customer needs may have evolved over time. This leads to lack of consistency and the possibility of damage to quality across its various outlets. Use its strong financial position to invest in intellectual property rights. The business can keep costs low, keep up with the pace, control inventory and rely less on original equipment manufacturers OEM. The performance appraisal is not in a systematic manner. It gave Lenovo an upper edge as compared to other competitors. It has been successful in past, in most of the initiatives it has taken in new markets.

It competes in terms of price, quality, brand, technology, reputation, distribution and range of products, with Acer, Apple, Dell, HP and Toshiba. On most media, there is more clutter than ever, and customers are bombarded with multiple messages.

Lenovo swot 2018

Macmillan International Higher Education. However, the challenge of competition is big as the other brands are also trying to make their clout felt with full might. Its products are highly popular in both China and India. Weaknesses of lenovo Research and Development: Even though lenovo is spending more than the average research and development expenditure within the industry, it is spending way less than a few players within the industry that have had a significant advantage as a result of their innovative products. SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. Lenovo manufactures nearly half of its hardware and has set up production plants in low cost regions such as China, Brazil and Argentina to benefit from higher margins. Instead of traditional headquarter model, Lenovo manages 3 centers of excellence around the world US, China and Singapore. It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too. Increase payrolls, provide incentive packages and benefits to employees to reduce turnover and improve work morale. This would help increase sales in volumes and is feasible due to low inflation and cost S2, O3. High level of customer satisfaction — the company with its dedicated customer relationship management department has able to achieve a high level of customer satisfaction among present customers and good brand equity among the potential customers. Product Portfolio: lenovo has a large product portfolio where it provides products in a large range of categories. The rise in prices of fuel has increased in the input costs for lenovo.

The company finds it hard to access US and Europe markets as its brand perception is low there. The exchange rate has been devalued. Government green drive also opens an opportunity for procurement of lenovo products by the state as well as federal government contractors.

Household income is increasing and so is the consumer spending.

Swot analysis of hp

High delivery time: The order delivery time in Lenovo is around 3 weeks. The company faces intense competition in all its business segments. The business can keep costs low, keep up with the pace, control inventory and rely less on original equipment manufacturers OEM. It lists the Strengths-Threats ST strategies that involve using strengths to fight of threats. The factors listed down in a SWOT analysis may be overemphasized by the company. However, there are still major challenges ahead. Boston: Irwin McGraw-Hill. Its products have maintained quality over the years and are still valued by customers, who find it as good value for the amount of money that they pay. This means that there is an opportunity for lenovo to expand their presence online; by using the internet to interact with its customers. It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical. New environment regulations under Paris agreement could be a threat to certain existing product categories. Journal of Strategy and Management, 3 3 , It will prove hard for Lenovo to compete in such market and continue to grow its market share. Strengths lenovo has a Strong Distribution network with a large number of outlets.

Financial planning is not done properly and efficiently. Suppliers: The bargaining power of suppliers has increased over the years with the decrease in the number of suppliers. Its business is divided into several business groups or divisions. It also leads to reduced innovation. There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies.

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It also faces cash flow problems. Market Research: lenovo has not conducted market research within the market that is serves since the past 2 years.

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Lenovo swot analysis by GotAbout