Strategic and competitive positioning of Lenovo Free Essay Example, 3750 words

Generic Strategies of Porter Strategy Device Justification Cost Leadership Think Pad, Think Server, Think Centre Low price especially targeted for emerging markets. Product Differentiation Lenovo Tab, Lenovo Tab A8 and Lenovo Tab A10 Products with differentiated pricing Focus Strategy Lenovo Tablets Focussing on different segments of market; niche segmentation Lenovo has achieved cost leadership through its Think Pad laptops. With efficient manufacturing, Lenovo has been able to cut down prices of the basic laptop ThinkPad models (The Guardian, 2014). Also, Lenovo laptops are distributed in bulk among numerous colleges, universities and companies across the globe, thereby increasing its volume sales substantially. Lenovo vs. Main Competitors Figure 1 Lenovo and competitors (Source: Ragaza, 2014) The above data has been critically used for development of another model known as Bowman’s clock. The generic strategic of Porter can be better understood through visual expression. Bowman’s Strategy Clock Bowman’s strategy clock can be considered as an extension of the generic strategic, so as to establish better differentiation among similar services or products. Here, the offerings of firms can be placed at any location of the 360 degree model, owing to flexibility and placement of the model. The ThinkPad laptop division of Lenovo falls under the low price segment. We will write a custom essay sample on Strategic and competitive positioning of Lenovo or any topic specifically for you Only $17.96 $11.86/pageorder now Compared to laptops produced by other competitors such as, Dell and HP, basic Lenovo ThinkPad laptops are affordable and relatively cheaper, owing to their comparatively basic features and lesser offerings (Ragaza, 2014). As a result of its broad innovations, Lenovo laptops are considered under categories such as, low price, focused differentiation and differentiation. The laptops from Lenovo serve both middle income and higher income group segments (Rugman and Li, 2007). Bowman’s Strategy Clock for Lenovo and its competitors Apple, Lenovo, Acer High Dell, Lenovo 4 Differentiation Dell, Lenovo, Apple 3Hybrid Perceived Value 5 Focussed Differentiation 2 Low Cost Lenovo ThinkPad, HP 6 6, 7 and 8 Strategies 1 Destined for Failure Low Low Cost Low Value 8 7 Low Price High (Source: Author’s Creation) A strategic Bowman’s strategy has been formulated for Lenovo and its competitors.