In a statement, Yang said, "While the transaction is a personal financial matter, I want to be very clear that my decision to make this investment is based on my strong belief in the company's very bright future. My decision to increase my holdings represents my steadfast belief in these principles. Lenovo's corporate culture differs from other Chinese companies. While Lenovo was founded using seed capital from the state-owned Chinese Academy of Sciences , Lenovo is run as a private enterprise with little or no interference by the state.
Lenovo's senior executives, including many non-Chinese, rotate between two head offices, one in Beijing and the other in Morrisville, North Carolina, and Lenovo's research and development center in Japan. Two foreigners have previously served as Lenovo's CEO. English is Lenovo's official language. Lenovo's CEO, Yang Yuanqing, initially did not understand English well, but relocated his family to Morrisville to improve his language skills and learn American ways.
One American Lenovo executive interviewed by The Economist praised Yang for his efforts to make Lenovo a friendly place for foreigners to work.
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He said that Yang had created a "performance culture" in place of the traditional Chinese work style of "waiting to see what the emperor wants". Yang Yuanqing is the chairman and chief executive officer of Lenovo. One of his major achievements was leading Lenovo to become the best-selling personal computer brand in China since In , Business Week named him one of Asia's rising stars in business. Ward, Jr.
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Ward was succeeded by Bill Amelio on 20 December Yang was chairman of Lenovo's board from to , and returned as chairman in alongside his role as CEO. According to Lenovo spokesman, Jeffrey Shafer, Yang felt that it would be the right thing to, "redirect [the money] to the employees as a real tangible gesture for what they done.
This was almost equivalent to a monthly salary of an average worker in China. Liu Chuanzhi is the founder and chairman of Lenovo.
Liu was trained as an engineer at a military college and later went on to work at the Chinese Academy of Sciences. Like many young people during the Cultural Revolution, Liu was denounced and sent to the countryside where he worked as a laborer on a rice farm. Liu claims Hewlett-Packard as a key source of inspiration. In an interview with The Economist he stated that "Our earliest and best teacher was Hewlett-Packard. I was wearing an old business suit of my father's and I sat in the back row. It was unthinkable. In early , Lenovo announced the addition of Yahoo founder Jerry Yang to its board.
Brand and model
Lenovo's CEO Yang Yuanqing said, "Jerry's appointment as an observer to our board furthers Lenovo's reputation as a transparent international company. Speaking of both men Yang Yuanqing said, "We believe that they will add a great deal to our strategic thinking, long-term direction and, ultimately, our ability to achieve our aspirations in the PC plus era. In , Lenovo became the first personal computer manufacturer to divide countries into emerging markets and mature markets. Lenovo then developed a different set of strategies for each category. Lenovo's competitors have widely adopted the same approach [15].
In , Lenovo made a major effort to expand its market share in developing economies such as Brazil and India through acquisitions and increased budgets for marketing and advertising. In China, Lenovo has a vast distribution network designed to make sure that there is at least one shop selling Lenovo computers within 50 kilometers of nearly all consumers. Lenovo has also developed close relationships with its Chinese distributors, who are granted exclusive territories and only carry Lenovo products.
As of July , Lenovo believes that urbanization initiatives being pushed by Premier Li Keqiang will allow it to sustain sales growth in China for the foreseeable future. Speaking at Lenovo's annual general meeting in Hong Kong in , Yang Yuanqing said: "I believe urbanisation will help us further increase the overall [domestic] PC market. Lenovo previously benefited from the Chinese government's rural subsidies, part of a wider economic stimulus initiative, designed to increase purchases of appliances and electronics.
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That program, which Lenovo joined in , ended in Lenovo enjoys consistent price premiums over its traditional competitors in rural markets and a stronger local sales and service presence. Lenovo has gained significant market share in India through bulk orders to large companies and government agencies. For example, the government of Tamil Nadu ordered a million laptops from Lenovo in and single-handedly made the firm a market leader.
Lenovo distributes most of the personal computers it sells in India through five national distributors such as Ingram Micro and Redington. Given that most smartphones and tablets are sold to individuals Lenovo is pursuing a different strategy making use of many small state-centric distributors.
Amar Babu, Lenovo's managing director for India, said, "To reach out to small towns and the hinterland, we have tied up with 40 regional distributors.
We want our distributors to be exclusive to us. We will, in turn, ensure they have exclusive rights to distribute Lenovo products in their catchment area. In February , Lenovo established a relationship with Reliance Communications to sell smartphones. Babu claims that the relative under penetration of smartphones in India represents an opportunity for Lenovo.
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Lenovo has assembled a team of senior managers familiar with the Indian market, launched mobile phones at all price points there, and worked on branding to build market share. Lenovo did marketing tests of its smartphones in November in Gujarat and some southern cities, where Lenovo already had a strong presence. Lenovo's strategy has been to create awareness, maintain a broad selection of phones at all price points, and develop distribution networks.
Lenovo partnered with two national distributors and over local distributors. As of February , more than 7, retail outlets in India sold Lenovo smartphones. Lenovo has also partnered with HCL in order to set up service centres in cities. In India, Lenovo grants distributors exclusive territories but allows them to sell computers from other companies. Lenovo uses its close relationships with distributors to gain market intelligence and speed up product development.
Canalys, a market research firm, said Lenovo took market share away from Apple and Samsung in the country. Lenovo first started doing business in South Africa , establishing a sales office, and then expanded to East African markets such as Kenya, Tanzania, Ethiopia, Uganda, and Rwanda.
According to Lenovo's general manager for Africa, Graham Braum, Lenovo's strategy is to put "great emphasis on products that sell well in Africa" and roll out "products alongside different African governments' rolling out of wireless technology". Products such as the Lenovo Yoga series are popular in Africa because of their long battery life, as many areas have unreliable electrical supply.
Other popular products include the Lenovo netbooks, which were introduced in Lenovo picked Nigeria in to release its smartphone because unlike South Africa and other African countries, there is no requirement to partner with a local telecom firm to sell its phones. In the long term, according to Braum, "Lenovo in Africa will focus on continuing to consistently supply personal computer products and allow this market to grow, while moving into new territory such as mobile and enterprise. The campaign was Lenovo's first to go global, except for its domestic market in China, where it retained its existing "Imagine" Pinyin : lian xiang slogan.
The campaign did not reach China because "do" carries connotations of manual labor in the country, an image that Lenovo did not want attached to their brand. Lenovo also started manufacturing products in the US in In October , Lenovo announced that it had hired Ashton Kutcher as a product engineer and spokesman. Kutcher announced Lenovo's Yoga Tablet at a media event the same month; he flew to China to meet with Lenovo executives shortly thereafter. David Roman, Lenovo's chief marketing officer, said, "His partnership goes beyond traditional bounds by deeply integrating him into our organization as a product engineer.
Ashton will help us break new ground by challenging assumptions, bringing a new perspective and contributing his technical expertise to Yoga Tablet and other devices. Kutcher studied biochemical engineering at the University of Iowa. Kobe Bryant starred in ads aired in China and other Asian countries for the K smartphone in When asked about Lenovo's brand Yang Yuanqing said, "The Beijing Olympics were very good for brand awareness in countries like the US and Argentina, but not good enough. The contest allowed students between the ages of 14 and 18 the chance to devise experiments to be performed by astronauts on the International Space Station.
The global winners had their experiment results live-streamed from space, and received a trip to either Japan or Russia. Lenovo will receive advertising space in NFL venues and events and be allowed to use the NFL logo on its products and ads.
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Lenovo said that this sponsorship would boost its efforts to market to the key to year-old male demographic. The NFL has been a Lenovo customer since and the sponsorship resulted from that relationship. Lenovo's sponsorship will last at least three years. The film depicted a mysterious young woman using the IdeaPad Yoga 13 to stay one-step-ahead of her evil pursuers.
Martin Campbell , who previously worked on action movies and James Bond films such as GoldenEye and the remake of Casino Royale, shot this film. Lenovo was the first Chinese company to make use of such marketing techniques. Lenovo also used Tech World to announce a refresh of its corporate logo and visual identity. The shift in Lenovo's visual presentation was accompanied by changes in Lenovo's business model.
Lenovo said that it was transitioning from being solely a hardware maker to producing both hardware and software. Lenovo announced several concept and production devices at Tech World including Smart View, a concept smartwatch with two screens and a virtual display; Smart Cast, a concept smartphone with a built-in laser projector that displays content and virtual user interfaces such as keyboards and musical instruments; Lenovo Cast, an Android-based streaming video device; Smart Shoes, concept shoes with a screen to display the user's mood and fitness tracking sensors; the ThinkPad 10 , a new tablet computer; and Cortana integration with Lenovo devices and software, including REACHit, which extends Cortana's search functions to non-Microsoft services.
ZUK , a separate company formed by Lenovo in , announced several products at Tech World, These included slim power banks, 3D printers that can print food such as chocolate, an outdoor sound box, and a Wi-Fi based control system for home automation. Lenovo launched a multi-year advertising campaign called "Goodweird" in the last half of Goodweird is designed to convey the idea that designs that seem strange initially often become familiar and widely accepted.
The Goodweird campaign includes a video with famous images of early attempts to fly with the aid of homemade wings and a bicycle that transitions to a modern-day shot of a man soaring across mountains in a wingsuit before transitioning again to a shot of the Stealth Bomber. Goodweird is part of Lenovo's wider strategy to appeal to millennials with an emphasis on design trendsetters. A portion of the funding for Goodweird is being directed to prominent YouTubers and Viners. BuzzFeed has been engaged to create relevant content. In February , Lenovo became the subject of controversy for having bundled software identified as malware on some of its laptops.
The software, Superfish Visual Discovery, is a web browser add-on that injects price comparison advertising into search engine results pages. To intercept HTTPS -encrypted communications, the software also installed a self-signed digital certificate. The head of Superfish responded to security concerns by saying the vulnerability was "inadvertently" introduced by Komodia, which built the application.
From October through June , the UEFI firmware on certain Lenovo models had contained software known as "Lenovo Service Engine", which Lenovo says automatically sent non-identifiable system information to Lenovo the first time Windows is connected to the internet, and on laptops, automatically installs the Lenovo OneKey Optimizer program software considered to be bloatware as well.
This process occurs even on clean installations of Windows. It was found that this program had been automatically installed using a new feature in Windows 8 , Windows Platform Binary Table , which allows executable files to be stored within UEFI firmware for execution on startup, and is meant to "allow critical software to persist even when the operating system has changed or been reinstalled in a 'clean' configuration"; specifically, anti-theft security software. The software was discontinued after it was found that aspects of the software had security vulnerabilities, and did not comply with revised guidelines for appropriate usage of WPBT.