Jenny Chan 陳詠欣
Jan 9, 2013

Lenovo's reorganisation into two business groups intended to sharpen branding

BEIJING - Lenovo has begun implementing an internal company reorganisation intended to sharpen its branding and enhance its ability to innovate in both premium and mainstream product segments.

Lenovo's reorganisation into two business groups intended to sharpen branding

Lenovo’s current operations, including its global supply chain and corporate functions, will be integrated and aligned into two new end-to-end business units:

Lenovo Business Group (LBG), led by Liu Jun, senior vice-president, will focus on the mainstream consumer/commercial desktop, notebook PC and tablet businesses. Previously, Liu led the company’s mobile internet and digital home (MIDH) businesses.

Think Business Group (TBG), led by Peter Hortensius, senior vice-president, will focus on premium products in both the commercial and consumer segments, as well as enterprise solutions (such as servers and storage) and work stations. Hortensius previously led the company’s global product group, which was primarily focused on PCs.

The company expects to complete this reorganisation and begin operating under the new structure by April, but "does not anticipate any workforce reductions directly related to this announcement".

In particular, Lenovo's smartphone business has gained momentum in China. Its smartphone market share rose from 1.7 per cent in 3Q11 to 14.8 per cent in 3Q12, making it the number-two brand behind Samsung (16.7 per cent) and ahead of Apple (6.9 per cent).

Chief executive Yang Yuanqing said in the high-end market, the Think unit will also have the best brand assets to compete with Apple.

Smartphones will be incorporated into the LBG unit. Matthew Cheung, principal research analyst at Gartner, predicted that by the end of this year, Lenovo will become the top smartphone vendor in China.

"It is the only local smartphone player that can compete with global top brands in China, thanks to its household brand recognition, nationwide distribution, strong portfolio and reasonable pricing," Cheung said.

"The brand is positioned at the mid-to-lower end, which will drive much of its future growth, and this is where global brands are less competitive".

Yang also said while the company tried to promote the Lenovo brand in mature markets, it only received recognition for its mainstream and low-end products. He believes separating the brand along two distinct themes will enhance the brand in separate market segments.

Source:
Campaign China

Related Articles

Just Published

1 day ago

Amazon CEO Andy Jassy on using AI to win over ...

The e-commerce giant’s CEO revealed fresh insights into the company's future plans on all things consumer behaviour, AI, Amazon Ads and Prime Video.

1 day ago

James Hawkins steps down as PHD APAC CEO

Hawkins leaves PHD after close to six years leading the agency, and there will be no immediate replacement for him.

2 days ago

Formula 1 Shanghai: A watershed event for brand ...

With Shanghai native Zhou Guanyu in the race, this could be the kickoff to even more fierce positioning among Chinese brands.

2 days ago

Whalar Group appoints Neil Waller and James Street ...

EXCLUSIVE: The duo will lead six business pillars and attempt to win more creative, not just creator, briefs with the hire of Christoph Becker as chief creative officer.