Management C onsultant for Lenovo

1. Management Consultantfor Lenovo Done by: Tony Zhou (26) Lucas Teo (9) LoyWeiPeng (7)

2. Comparison of market share between Apple and Lenovo since they have a number of similar products Do note that our statistics are based on the third quarter of 2012

3. VS *Do note that our statistics are consolidated based on the third quarter of 2012

4. Developed many of the applications that we use today (Google Chrome browser, Google Map, Gmail…etc) • 67% of search engine market shares

5. Acquired from:http://en.wikipedia.org/wiki/Usage_share_of_web_browsers

6. Profit Figures (Apple) Acquired from :http://www.ifoapplestore.com/stores/charts_graphs.html

7. Profit Figures (Lenovo)

8. Acquired from: http://www.lenovo.com/ww/lenovo/pdf/report/E_099220121121d.pdf

9. Profit Figures (Google) Acquired from: http://investor.google.com/pdf/2012Q2_google_earnings.pdf

10. Generally, Lenovo already has its foundation for worldwide market sales, but it has still yet to consolidate it place at the US market • It is relatively strong in Asia market, but still relatively weak in the West • Cultural differentiation can be obstacles for Lenovo when breaking into the US market

11. Lenovo market share in different countries

12. Lenovo market share in different countries

13. Notable policies by Google • 20% rule to encourage innovation • Peer review system to encourage positive competition • Both external and intrinsic motivation so workers feel devoted to their job • Conducive work environment • Attractive and correct rewards to engineer, like providing the application developed to the public for free. After all, to have people using their applications are what all engineers dream of

14. Notable policies by Apple • Outstanding leader to ensure stable development • Suitable criticism accompanied with encouragement to motivate workers (Steve Jobs can make the task of designing a power supply feel like a mission from God) • Analysis of strength and weakness of every worker upon entering the company • Secrecy of product development to gain advantages in different stages (“If you start out early and do a good job and get a good market share, you'll grow and maintain your percentage as you grow.”)

15. American Consumers Why does Lenovo need to know about US market? • American consumers judge retail brands by how they engage them • Consumers want retailers to listen to their preference • Lenovo has to collect opinions from this group of consumer • Current US consumer is breaking traditional trend of in-shop purchasing, they are turning to online platforms now • Improve navigation for online purchasing websites • Simple checkout process • Presence of product image

16. Suggestions for

17. Suggestion (Management policy) • The 20% rule would be a great policy for all technology firms, especially when accompanied by peer competition • Recruiting of more youths since they are usually more creative and prefer uniqueness. (20% rule would be great for attracting them) • Support risk-taking and creativity by organising mini competitions for development of products or applications within the company

18. Suggestion (marketing strategy 1) • Wider use of social media as an extra platform to collect opinions • Easier accessibility into consumer’s opinions • Ability to collect opinions from different perspectives and consumers from around the world • A good platform for advertising

19. Suggestion (marketing strategy 2) • Improve online purchase procedure Convenience is widely regarded now among many consumers such that they turn to the online platform for purchases instead. Ensuring the online tools are well maintained can be a boost to Lenovo’s sales • Better presentation of websites • Lower shipping costs • Presence of product image from different angles • Online surveys to understand users’ shopping experience and ensure that the different policies stay relevant

20. Suggestion (product strategy 1) • Following the birth of the SSD (solid state drive), it has a great potential to replace traditional hard disk drives • SSD may be more expensive than traditional hard disk drives but they are more resilient to shocks with minimal mechanic parts • Higher performances compared to hard disk drives Faster start-ups, reading/writing speed, file transfer etc • Uses half as much energy compared to hard disk drives • With its high prices, it may not be attractive in PC market, but it definitely has its future in the tables and smartphones market since memory consumption is much less and the price becomes more balanced. Currently, the only major technology firm which uses SSD widely is Apple, so Lenovo still has the chance to control the market by deploying SSD technology before other companies

21. In the long run? • Consider the aging population which will revolutionize the entire market in the next decade • Quality of products and technology are key to the PC markets, but presentation of products should not be neglected either • Mature consumers complain that many tag labels of electronic products are too hard to see • Too complicated systems and functions • Can Lenovo produce a gadget that take the older consumers into consideration too? It would be good to start now so as to accumulate enough experience to combat the massive older consumer in the market after the next 50 years • Areas to consider: Packaging of products

22. Lenovo’s stats https://www.idc.com/getdoc.jsp?containerId=prUS23772412 http://www.reuters.com/article/2012/11/08/us-lenovo-results-idUSBRE8A707020121108 http://www.zdnet.com/cn/lenovo-to-become-top-smartphone-player-in-china-by-2013-7000007721/ Apple’s stats http://www.macrumors.com/2012/10/10/apple-hits-new-high-with-13-6-share-of-u-s-pc-shipments-in-3q-2012/ http://mashable.com/2012/11/05/apples-tablet-market-share-drops-to-50-4-percent-report/ http://velositor.com/2012/04/04/apple-and-samsung-forecasted-to-lead-in-2012-global-smartphone-sales-no-expected-resurgence-for-nokia/ Google stats http://en.wikipedia.org/wiki/Usage_share_of_web_browsers