Lenovo's business strategy of entering internationalmarketIntroductionChoosing what kind of strategy to enter the overseas market is not only important to the business success of accessing to overseas markets, but also important to the business to further develop and expand. This influences the company's competitive position in the global market and international development pace. This management report is based on the related theory, company’s advantages and the objective s of the international business company. Its aim is to put forward for Lenovo to enter the international market and international business model design.1. Lenovo business backgroundLenovo was founded in 1984 by the CAS Institute and being invested 20million Yuan. The founders are 11 scientific and technical people. And today Lenovo has grown into a diversified development large enterprise groups in the information industry. At the beginning, the turnover of the company is only 300 million. But the number was 1.1 billion i n 1994 and 30 billion i n 2004 in annual sales development. Today's Lenovo Group is China's leading IT Company. It is primarily engaged in the desktop computer, notebook computer and mobile phone devicesand servers .It has developed into a diversified development company. Lenovo has been across two steps from its beingset up: Before the 90s in the 20th century, Lenovo was mainly a trade-oriented enterprise. Survival is the main purpose; the secondAfter stage is the development of its own brand in the later ten years.20 years’ development, Lenovo has been ranked first in Asia in the computer industry, dominating the Chinese market; the future of the space is the global market and global competition.2 Lenovo Corporate CultureLenovo has made brilliant achievements and attracted worldwide attention in the past 20 years in the territory of China. It is a charming legend of Chinese enterprises. T hen what is Lenovo’s secret of success? Through the course of development and the understanding for Lenovo business culture, we think the success is based on different stages of the corporate culture and making theappropriate adjustments according to the situation. Thatis, with the transition o f the company time after time, that the cultural evolution are carried out again and again.Recalling the past 20 years, the association of11people enterprises has developed as a major international enterprise groups.Liu and 11 others started by 20 million to set up the Institute of Computer Technology - the predecessor company. This stage primarilyused technology services to accumulatefunds through open market with its competitive products. The corporate culture of this period mainly represented that entrepreneurs developed that the researchers stood behind the counter and made some Lenovo rules, etc to explore the managementof enterprise management. Among them, the association put forward that we want the results not the process and the benefits notthe effort. The market outlook included the quality is life, the user is Queen and the reputation is even more expensive than gold.2.1 Liu's business and customer cultureThe culture of Liu’s period emphasized the pursuit of a strong executive. In 1984, Lenovo was set up in a square room of the Chinese Academy of Sciences. 11 staff started the business by 20 million invested by CAS Institute of Technology. What Lenovo face during thisperiod is related to the competitive pressures of survival. They are full ofdetermination to start business and full o f the spirit t o overcome allAt that time Lenovo often say that we should let 5% of difficulties.possibility turn to 100% of reality. This is a very strong entrepreneurialculture shown in the environment at the time. In the view of Liu’sword being word, action being action which is executed firmly, the staffshave a very strong response. This will help Lenovo the target ofcustomer-centric orientation at this time. Lenovo believes that thecustomer is queen, and treating customers are going to face the cold ass.This reflects the association has strong customer awareness. Fromchanging from scholarship to do the market, Lenovo began tounderstand what to be concerned about is what customers need,consider what products we should go for sale, consider how to controlcosts in order to earn money, consider creating our own brand. As aresult, business sense builds up step by step Lenovo people often saythat there is no master. It is ourselves lead us into the door of themarket; At the same time, the most impressive cultural memories haveto be realistic and enterprising spirit of the association, which requirespeople to have the spirit o f down to earth and the realistic spirit o fmaking progress.2.2 Yang's strictness and entrepreneurial cultureWhen the company first got into the business and a long-termsustainable development objective shown in front of Lenovo, the corporate culture walks toward the rules-oriented. Lenovo people want precise and efficient rules, want everyone to be strict, serious, active and efficient. They put a lot of things into one workflow system to have specifications. They say obeying the three principles of working, turning around the rule. The behavior of employees needs to be regulated, howto carry out the business needs norms, businesses management alsoneeds to be regulated. Lenovo culture gets into a strict culture period. That strict c ulture as a management style appears at this time is conducive to the overall management level. The company promotes thestrict accurate culture of this period which ensures the rapid development trend of Lenovo's 1997-1999 three-year.When the company got more and more developed, more and more departments, Lenovo discovered that simple strict culture is not conducive to focus on collaboration within the company. So this period Lenovo spoke more about team sense, telling us the truth that how towork in little company, how to be a man in large company. Meanwhile,the company advocated equality, trust, appreciation, affection of family culture to make Lenovo a little more conducive to collaboration withinthe company's air. Family culture promoted mutual support, promotedmutual customer philosophy, implemented matrix management model,required the co-ordination between departments and levels andresource sharing, promoted equality, trust, appreciation and affection. At this time the corporation culture began the transition that is guidance from the rules to the support. In 2000 Lenovo formally definedthe support of family-oriented culture. Yang yuan qing is Called From the revered teacher, to the respected the manager, now as Yuan Qing. Three such changes have been achieved for China's IT flagship corporation for 17 years after its setup. Yang admitted: Lenovo was more left early in the days and family composition is relatively small. So we began to emphasize the family culture two years ago. There will be a fixed day each month, leading members of the team standing in front ofthe company to meet the staff. Yang let all Lenovo employees call him Yuan Qing. Who called president Yang would get a fine of 100 Yuan. Lenovo stressed family culture for a time. Researchers at the Institute follow the work in Silicon Valley, such as the allocation of working hours can be on their own decision, casual dress in the office and so on. Yang also proposed that in the staff birthday, present birthday cake asthe company name; even on Valentine's Day let everyone get off to date early. Family culture is the content of building creativity i n a more relaxed, vibrant atmosphere.Since the moment the new generation of Yang truly took over the future from the older generation Liu, Lenovo began its new journey, which is Lenovo's second business. Lenovo now advocate entrepreneurialculture on the basis of culture in the family. In the full sense of post-industrial designed Lenovo's new building in Shenzhen, offices, elevators, cafeterias and even bathrooms can find small banners everywhere associated with the entrepreneurial culture. Yuan Qing want to always remind people to think that let everyone back together to have a self-made spirit to face the current competitive environment. Lenovo's new entrepreneurial culture is precisely in line with the profound sentiment which Yang points: Lenovo ten years, the most basic thing which never should be lost, is never satisfied, keep making progress, look at the big, lofty goals. There is a goal, then always another goal, which is the kind of jumping to reach.If the Lenovo culture which is from an entrepreneurial culture, clientis on behalf of the company’s culture to strict culture, family cultureculture of past and present, then the culture which is about to start the business is Lenovo's future culture. Therefore, the culture is Lenovo's core competitiveness. Today it is the culture that creates Lenovo. Lenovo is not only changing their culture step by step, but also creating their own culture in another step. In Lenovo's cultural construction, Lenovo have learned international advanced enterprise culture, and ultimately the unique formation is formed. This is Lenovo's business model of cultural development at different stages of development and showing a different orientation. The development of corporate culturespiraled up. In general, the company carries out the evolving corporate culture from the innovation (first business) oriented, goal-oriented, rules-oriented, support-oriented and high level of innovation (second business) oriented and finally form the formation of spiral trend.3 Lenovo’s challengesDecember 2004, "Lenovo" took over IBM PC Division by huge amountsof money of the company, which caused great shock and marks that Lenovo began to walk the road of export-oriented by the help of "International Strategic Alliances". Lenovo's international road faces complex international market. Lenovo needs to build up its own comparative advantages. Through the integration of the IBM brand, management and channel edge, it needs to form a unique competitive edge.Beijing December 8, 2004 in Beijing, Lenovo Group announced it getthe acquisition of IBM's global PC business as total 1.25 billion, including business desktop and notebook business. Specifically, Lenovo paid 1.25 billion, including 0.65 billion in cash and 0.6 billion stock composition of Lenovo. The Chinese shareholder, Legend Holdings will hold a stake of around 45%. IBM will own about 18.5% ofthe shares. Lenovo also announced a high-level change adjustment,IBM senior vice president Stephen • Ward will serve as the new Lenovo CEO while Yang was named chairman of the company.Contact the previous March 26, 2004, Lenovo signed with the International Olympic Committee. The signing ceremony theme is: letthe world think of China. Lenovo became the 6th Olympic Partner. Lenovo's international journey has started long time ago. The acquisition is actually two acts of IT cooperation about China-US strategic partnership. Lenovo will be changed from international import-oriented to export-oriented of the road through "international strategic alliances “.Facing the new challenges of the Internet economy, the new era of Lenovo is ready to step forward at the new strategies, new journey of the oath-taking rally. As Yang who is the core leaderships of the new generation said that the culture and the new Lenovo's strategy is the first and foremost urgent problem. Then through the review of corporate culture changes, founder Liu said, "Western management emphasizes standardization. Oriental Management stresses human, family, or more artistic management. Lenovo should take the standardized and scientific management as the foundation, and regulate with human feelings and family. “‘Main ingredient’ stil l needs to be standardized.”4 International market developmentInternationalization has always been a goal and strategic objectives of Lenovo. Raising the 2001 target, the 2002 Technology InnovationConference, April 8, 2003 the new association's name, 2008 Lenovo sponsors Olympic Games, being an Olympic sponsor and the Lenovo acquisition of IBM are all tactical measures for the association International, which have become an integral part of this strategic action. This acquisition is a historical powerful combination between Lenovo and IBM. Lenovo is bullish on IBM's influence in the international and excellent technique and management resources. Modern Marketing tells us that if companies want to ensure their survival in the competition, and actively explore the market, the best way is to seek some new mode of competition in order to achieveco-existence and common development goals. In an increasingly competitive international market, the principle pursued by the previous competitors that competitors are enemies to each other has become increasingly obsolete business concepts and is abandoned by people. International strategic a lliance is just a new marketing organization having the function of both competition and cooperation.World's fourth largest PC maker Lenovo Group released fiscal earnings 2008/2009 in the third quarter. Until December 31, 2008 in the third quarter, Lenovo's net loss is up to $ 97,000,000. Lenovo Group must acknowledge its remaining issues and positive response in order to get more healthy and stable development in the current global financial crisis situation, and sustaining process of international business. Theprincipal analyst Ye Lei of Gartner which is China's leading market research firm in Chinese hardware market said 2009 is the key. Lenovois ready to fight to defend against the war.4.1 Mature markets recognition overseasThe global market is divided into emerging markets and mature marketby Lenovo. In the United States mature market, the main customershave an approval for Think Pad and Think Centre products, whileLenovo has no attractiveness. There has been a "U.S. Department ofState Procurement storm" interpreted by the industry analysts aslow-cost sales strategy in China American Psychological conflict. Lenovo Group former vice president and chief marketing officer De Puke • Advani pointed out that Lenovo is really not fully involved in all over about small businesses in the U.S. market, in product, market accessand other aspects related to the brand. He pointed out actually "It contains a full market opportunities inside it." As a result, Lenovo will be in broader product coverage in the United States. The market is not just the Think brand, but also focuses on small business users. Onlythe multimedia home user market is not being involved. Therefore, in mature markets recognition overseas, only the Lenovo Group seize this opportunity in the complete market, its international business can be protected.4.2 New product market opening upIn the business strategy, product strategy for Lenovo Group International Trade, we have already explained that in the third quarterof fiscal year 2008/09, it is high time for Lenovo to launch a Netbook. At that time Asus was selling netbooks, but Lenovo worried about that the netbook would fail to keep up the pace of PC market. So Lenovo oncehad a negative attitude towards the market. But when the netbook started to show the market's early growth, Lenovo is still a attitude of seeing. It is the positive attitude that let Lenovo lose opportunities in the shopping mall. And meanwhile it led to miss opportunities to avoid the crisis for Lenovo. As many manufacturers have started entering the netbook market, Lenovo finally reached the market. So seize the opportunity to develop new products for Lenovo later days in the market should be a good suggestion.In international business course, Lenovo should do develop new products to get more market share, seize new opportunities in time andhave a keen insight into the market.4.3 Human ResourcesThe accumulation of human resources plays a key role in business growth for IT Corporation. Lenovo has been hired former IBM executive Stephen Ward • M as the new Lenovo's CE O, former senior vice president of Dell William •J • Amelio as president and CEO, formerpresident of China Dell Michael David as president of Lenovo in Asia Pacific and Lenovo senior vice president. Lenovo announced that former Vice President Gerry Smith of Dell took over Liu Jun’s position who is the original senior vice president. Stakeholders once reckoned that Lenovo was changing into "Dell". And if Lenovo truly wants to become a successful international entrepreneur, it must have international talent, and the courage to reuse experienced personnel in order to have the opportunity to gain surprise.Followed by the acquisition of IBM PCD, the internal association breedsa culture of inertia. It represents mainly that the weak performance in innovation, the negative promotion at business model and the setbacksfor the PC market sensitive (such as the netbook market in the late judge). Lenovo personnel innovation incentive mechanism should be established. Except in the marketing model, staff motivation and successful innovation on the organization, Lenovo should eradicate the culture of inertia of the staff in the most important technological innovation. So let it be a business full of vitality and vigor. Therefore, in the international business, Lenovo should do to deal with human resources issues and open up better international business.4.4 Establishment of a global consumer businessIn announcing layoffs, restructuring and a series of heavy news, Lenovo has finally started to beat back to the market: In one year, Lenovo willlaunched nearly 50 consumer computer products worldwide. In this counter-attack war, China indisputably becomes the most important piece. It not only provides a successful model for the global market, but also stays ahead of a situation gesture when more powerful enemy arrives to.In the system of international business, Lenovo Group should have the ability t o resume the global sales operations in order to protect the integrity of the process of its international business.5. A more developed structureIn order to effectively carry out international business activities and ensure the strategic goals of international business, Lenovo Group should establish a strategy of the organization and a form of controlling consistent with its international business. It should continuously improve the management of the organization in the international business.In recent years, Lenovo Group makes some appropriate adjustments inthe organizational structure. And headquarters move to the United States from Beijing. But the personnel arrangements, information flowing problems, the effective m anagement of business activities, controlling and coordination problems, the level of appropriate management, the range of management issues, centralization, decentralization and allocation of responsibilities have always impactedon the enterprise's international business results.The establishment of transnational network structure represents the ability f or rapid response for the local environment. And it is a new solution for taking advantage of global economies scale, seeking places for complex needs such as the superiority of global knowledge sources.ReferenceLenovo. 2010, Annual Report and Financial Statements.Chen, F., 2001.. O mega, 29(3), pp. 221-231Emilia, R. & Sara, M., 2008.. Journal of World Business, 43(2), pp. 171-185Jarko, F. & Iikka, K., 2010.. Journal of Asian Economics, 21(3), pp. 293-303Jerry, B. & Tracy, D., 2005.. Organizational Dynamics, 34(1), pp. 89-102.Kevin, G. & Mark, U., 2003.. 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