Study Of The New Lenovo's Core Competitiveness

After the acquisition of IBMPC department, Lenovo initiates a direct competition with leading companies such as DELL and HP in the IT industry, across in the global market. Striding into the international PC market through acquiring such a powerful competitor, Lenovo's future success is questioned by many people. In this paper, the distinctive competence of New (post-acquisition) Lenovo was studied by analyzing its value chain. Moreover, the competitive advantage based on its distinctive competence of New Lenovo, was also discussed, by comparing with its main competitors. This paper consists of seven parts. The first part is a brief introduction of the Chinese PC industry as well as the background of Lenovo's acquisition. In the second part, definitions and theories about distinctive competence were discussed. In the following part, the histories and the development of Lenovo was introduced. An illustration of the acquisition in detail was done as well in this part. In part four, the main section of the paper, the distinctive competence of Lenovo was analyzed. Part five focused on the competitive advantage of New Lenovo, drawn from its distinctive competence, was discussed. Part six showed that weather or not the distinctive competence of New Lenovo can be formed depends on the result of integrate. The last part is a close-up of the paper, summarizing the lessons from Lenovo's successful acquisition, especially, building up its distinctive competence after the acquisition for gaining more competitive advantage in the international market.