Chinese PC industry and Legend/Lenova

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Hi,

Interesting topic and some good articles. Have you read the articles, yet? If not, that is the place to start, as I will be referring to information in the article throughout the response.

One approach to help get you started on this paper is to address the two questions from the sources provided, which you can then draw on for your final copy. This is the approach this response takes. Like all academic papers, it will include an Introduction (e.g., introduce topic, and a purpose statement: The purpose of this paper is to...), Body (e.g., addressing the two questions) and a Conclusion (e..g, tie up main points).

RESP0NSE;

ASSIGNMENT:

Please answer the following questions:

1. What was the business strategy through which Legend/Lenovo came to dominate the Chinese PC industry?

China's PC industry has several major advantages that lead Legend/Lenovo to dominate the Chinese PC industry.

· One advantage it had over other Asian nations is that it has the lowest labor costs in the region after Indonesia (see Figure 2, Lo, 2002).

· In addition, China's excess capacity remains high, despite inventory reductions in the past few years (see Figure 3, Low, 2002). Inventory liquidation has put pressure on supply levels.

. Together with low labor costs, enabled China to cut export prices and win market share from its neighbors (Low, 2002).

The corporate strategy changed with the political and social arena, which is important. See the Spencer (2007) and the Lo (2002) articles, which reports that the Lenova's corporate strategy has paid off in keeping its position in the PC industry in China, including in that strategy low labor costs, partnerships, cultivating relationships with powerful allies to strengthen its position against Dell (Lo, 2002), job cuts, management shuffles, and a new global branding strategy at Lenovo (Spencer, 2007), which seems to have paid off as of this budget report in 2007 (see figures in Spencer, 2007).

2. What changes in corporate goals occurred after China entered the WTO?

In the Jung (2001) article, it contends that WTO having a leveling effect on the competitive terrain in the Chinese PC industry e.g. Dell, Toshiba, and IBM, so Legend's corporate strategy reflected this changing ...