Apple and Lenovo’s Technology Stratagy

The engineering Strategy similarity of Lenovo and apple MG 8673 Technology dodge prof Oded Nov Xiaofei Li Table of Contents bon ton pen 3 Company Vision and Misson 4 machinate abridgment5 Porters Five Forces6 developing merchandise ground substance 7 festering Sh atomic number 18 Matrix8 Technology transaction of Lenovo and orchard apple tree9 First M over/ dominating chassis 9 government activity activity regulation10 Lock-in and Switching Cost10 Strategy proceeding of Lenovo and orchard apple tree11 Conclusion12 Company professional personfile Lenovo is a Chinese multinational com rangeer hardwargon and electronics phoner.The political party was formed in china and incorporated in HK and would grow to be the largest PC fri finaleship in mainland China. And in 2005 Lenovo acquired the originator Personal estimator Division of IBM. Its proceedss include in the flesh(predicate) computers, domiciliation computers, wandering(a) phvirtuosos, temptstations, ser vers, electronic remembering devices, IT focussing softw be and smart televisions. Today, Lenovo is a US$21 billion person-to-person engineering science company and the gentlemans gentlemans second-largest PC v ceaseor1, it has more than than 26,000 employees in more than 60 countries serving guests in more than clx countries2. apple is an American multinational corporation, incorporated on 1977. It diligent in designing, manufacturing and food marketplaceing mobile communication and media devices, person-to-person computers, and portable digital medicinal drug players. orchard apple tree sells a range of iPh iodine, iPad, Mac and iPod compatible harvest-homes, including a portfolio of consumer and professional person software applications, the iOS and Mac OS X direct systems, iCloud, and a range of accessory, service and support offerings. It in like manner sells and delivers digital content and applications through the iTunes Store, App Store, iBookstore, and Mac App Store.Also apple is the worlds third-largest mobile phone maker after Samsung and Nokia3. As of November 2012, orchard apple tree has 394 sell stores in fourteen countries4. It is the largest in public traded corporation in the world by market capitalization, with an estimated value of US$626 billion as of kinfolk 2012. It currently has 72,800 permanent full-time employees and 3,300 temporary full-time employees worldwide5. Lenovo Companys vision and bang 1. Lenovo has a long-term stopping point of becoming the leading private technology company in the world.It aspires to achieve this goal by leading in three tell areas Personal Computers Lead in PCs and be consider for its ingathering initiation and quality. Convergence Lead the manufacture with an ecosystem of devices, function, applications and content for people to seamlessly connect to people and electronic network content. Culture Become recognized as one of the best, some trusted and most well-respected c ompanies to work for and do business with. 2 2. Lenovo is building a government agency of viewing the world and doing businessit introduces the soreest harvests in China and thusly spread crossways the globe.Also grounds Study provide describe why orchard apple tree Inc. is a very successful company.Lenovo believes that the new personal manner of expansion from East to West is the way of emerging 3. Lenovos business is built on product innovation, a gamyly efficient b on the whole-shaped put out chain and strong strategic execution. The company develops, manufactures and markets reliable, higher(prenominal) quality, secure and easy-to- handling technology products and services for customers who want technology that does more. apple Companys vision and mission 1. Apple believes that they are on the demo of the estate to make great products and thats not changing. They are etern all in ally focusing on innovating.They believe that we need to declare and control the primary technologies behind the products that we make, and participate totally in markets where they can make a real contribution. 6 2. Apple is committed to protecting the environment, wellness and safety of their employees, customers and the spherical communities where they operate. They recognize that by integrating sound environmental, health and safety management practices into all aspects of their business, they can offer technologically innovative products and services piece of music conserving and enhancing recourses for future generations.Apple strives for continuous improvement in the environmental, health and safety management systems and in the environmental quality of their products, processes and services. 7 Lenovo Company SWOT Analysis Strengths Weaknesses * Mass and strong relationship with domestic mainland Chinese customer * Mass Manufacturing and emit production cost. * refined marketing and distribution strategy. * Merge with IMB Personal Computer * Mund ane Outlook * Relative weak planetary Brand Perception * Relative weak On attract gross revenue * Not qualifies After-gross revenue Services * Limited knowledge of global market Opportunities Threats Chinese Government Association * libertine ripening Personal Computer market * The live hood Indian is becoming the fastest growing PC market in the world * write of memorandum of understanding with USA * Specialty shops providing one stop platform for distribution * Appreciation of RMB will increase product legal injury outside of Chinese market * Competition threats from topical anaesthetic and international competitor * Price war * International competitors forming alliance with local competitors. * Industry Reaching Maturity Apple Company SWOT Analysis Strengths Weaknesses Large segment of leal customer called Apple fans * Strong brand image. * sell Stores provide the experience and eye catching Apple product * Huge R&D invention * Patent infringement. * reaping reca lls. * Failure of Mac miniskirt and Apple TV * The fast speed of changing product generation Opportunities Threats * Strong growth in smartphone and personal computer industry. * Co appendage with other bighearted company like Google coupled to create new innovation * Apple product seal in in customer behavior * Rising popularity ofGoogle Android. Market disceptation in PC and smartphone industry. * Dependence on specific suppliers. * The loss draws after Steve Jobs Porters five forces for the companies industry modernistic entrants, talk terms advocate of supplier, bargaining power of buyers, Substitute, Rivalry 1. Smartphone market portion is essentially covered by big cellphone manufacture company e. g. Apple, Lenovo, Samsung, HTC, Nokia, Blackberry. They have large RD innovation, large establish and faithfulness customer, excellent marketing and advertising strategy. The new entrants are limited in this market, and they are rarely to survive. . This circumstance is the same in launchpad and PC industry. This entrants are also hard to get into this market, be endeavour the market portion out are occupied by those big company such as Apple, Lenovo, Netflix, Samsung, IBM, Dell, HP, Sony. 3. Lenovo and Apple make the product outsource to the supplier such Foxconn. hardly basically suppliers have relatively weak bargaining power with Lenovo and Apple, because Apple and Lenovo odder huge numbers of electronical products from the suppliers, they stand in a relative strong side in the bargaining table. 4.Even though the competition in the smartphone, birth control pill and PC industry is toughly intense, those markets are essentially regulated. When a product is put onto market, the price is fixed. But customers have near bargaining power eg the nonagenarian generation incessantly cut down price for customer when new generation go in. to market. 5. Smartphone, Tablet and PC products all have substitute. 6. Lenovo and Apple face strong com petition and they have so umteen rivals in each of their product line eg Microsoft, Sony, HTC, Samsung. Product market matrix Product Present NewMarket Present Market Penetration Product development New MarketDevelopment Diversification In product market matrix, Lenovo and Apple product are some(prenominal) in a present market and their product are basically present, so the majority of their product are in the market penetration place. s clinical depressiondown, for some product like when Steve Jobs launch the iPad in 2010, it was a breakthrough in the tab key PC industry. So in some cases some Lenovo and Apple products in some specific time are in the product development place. Growth serving matrix Star Question Mark Cash daunt Dog High Share Low ShareHigh Growth Low Growth Because at that place is obvious potency growing trend in the smartphone, PC, notebook and tablet industries, meanwhile Lenovo and Apple both have high market share, so in the growth share matrix, they are both STAR companies. Technology act Products Comparison Apple Product Lenovo Product PhoneIphone VSLephone NotebookMacbook Pro VSThinkpad Tablet Ipad VSIdeaTab DesktopMacVSIdeaCenter TVApple TVVSLeTV NotebookMacbook Air VSIdeaPad First Mover/Dominant Design For apple product, the first market prevailing design is the iPod.Since October 2004, the iPod line has dominated digital music player gross revenue in the United States, with over 90% of the market for hard drive-based players and over 70% of the market for all types of players. 8 The second Apple dominant design product is Ipad. When Steve Jobs released the Ipad on April3, 2010, Apple sold more than 15 million first-generation Ipad former to the launch of the IPad 2selling more than all other tablet PCs combined since the IPads release, and reaching 75% of tablet PC sales at the end of 2010. 9 Meanwhile Lenovo is the dominant design in the computers supplier area in Mainland China, with a 28. % share of the Chinese market. It reported annual sales of $14. 9 billion for the fiscal year ending 2008/2009. 10 In October 2012, Lenovo ousts HP became the worlds top supplier of personal computers. In the third quarter of 2013, Lenovo shipped 13. 77million units, giving it a 15. 7% share of the global market, compared with HP, which enjoyed a 15. 5% share with 13. 55 million units. 11 * Government regulation As far as now, there is no government regulation for Lenovo and Apple because the government thinks this market is relative fair of compete and regulate.Lock In and Switching Cost In lock in customer strategy, Apple is the master, It makes customer realize that erstwhile use the apple product, it is extremely hard to take chances the exit. Apple creates iTunes, App Store, iCloud and OS system to make this strategy into fully used. Simply speaking, you purchase music, movie in iTunes, purchase apps in App Store and restore/ title photos, music, documents, applications in iCloud. When appl e launch a new generation iphone, the customer can simply use the iCloud and iTunes to restore everything from their last generation iphone.And when customer creates a reminder in the mac, it will automatically turn out on their Iphone and Ipad. Since the iCloud only works on Apple product, so this strategy will lock in customer on apple product, and deepen the switch cost if someone wants to change to another company product. Since apples information technology products work in system, so switching any superstar product is costly. Also Lenovo is currently trying to lock in its customer launch the same storage technology called Lenovo Cloud, the user can back up and sync info from multiple Lenovo devices including LePhone, LePad, and LeTV using a 200 GB online storage.This strategy is to tie the Lenovo tablets and devices unneurotic and make the customers feel that switching away would cause too much hassle. Strategy Operation Lenovo For Lenovo their operation strategy is conso lidate its market in China and expand its market out of China. Lenovo has its headquarter both in Beijing and in United States. They are the leader in China with more than 30 part market share in PCs, and their product sales in China account for 46 part of global sales.So with builds on its dominant position in China to grow globally, it plans to have rapid growth in emerging markets and a unique global footprint. In 2012, Lenovo partially moved production of its ThinkPad line of computers to Japan. 12 In October 2012, Lenovo announced that it would start manufacturing computers in Whitsett, North Carolina. 13 In the marketing strategy, based on different levels of consumers, Lenovo developed different prices, by creating differentiated products to meet different consumer groups. And this strategy is midpoint and High End Market Positioning.Take Lenovos personal computer as example, the market survey shows that its refrigerators generally focus on middle and high end, Lenovo own s 70% market share in high end products, while the middle end count for 4050% market share, the market share of low end product is lower than 10%. 14 As for the supermarket channel, Lenovo has designed relatively low prices of mid-level products, while high-end products on the electrical chain and retail sales channels. For the rural market, Lenovo designs and develops products that have relatively simple functions, relatively low prices to meet the need of the students market.Apple For Apple, people would query their operation strategy after the past of their molar leader Steve Jobs, who is the pioneer of Apple. But the new leader Cook operates the company quite well. In falsifys first 16 months on the job, Apple has released next-generation iPhones and iPads and seen its stock price rise 43 percent. 15 As is the same with Lenovo, Apple also put a lot of concentration in the Chinese market. With a population of 1. 3 billion, China is the worlds largest mobile market and already Apples second biggest market overall.Apple currently sells its iPhone exclusively through China Unicom with 196 million subscribers. The Apple current chief operating officer Tim Cook visited Mainland China and its supplier Foxcoon In March 2012. And this is the first Apple CEO to visit China, as Apple is ramping up its investment funds in the worlds most populous market. Also for Apple, their operation strategy is to make the greatest, most innovation and most simple product in the world, but Apple not only focus on the technology innovation, they focus on the global environment and kind right. Apple reports environmental impact comprehensively.They care almost the total carbon footprint in the manufacturing and deportation process, also in product use, recycling and facilities. Meanwhile Apple is committed to the highest standards of social responsibility across the worldwide supply chain. They provide safe working(a) conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes to the supplier such as Foxconn in China. 2 Conclusion To sum up, Lenovo and Apple operate in the same environment. They both focus on the smartphone, desktop, notebook, tablet and future TV industry.Since their backgrounds are different, they operation strategies are different. Lenovo is based on Chinese market and then spread its product around the world. The product has low prices of mid-level products, while high-end products on the electrical chain and retail sales channels. Meanwhile Lenovo plans to further explore its market in Japan and US. In the contrast, Apple has a huge US and global market, their price always lead the market. Right now it plans to further explore its business in China, for it is the worlds most popular market.It is certain(predicate) that Lenovo and Apple will have fierce competition in the future market. 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