1. Chine's Lenovo Acquires IBM's PC Operations case study used what mode of strategy?

2. What we can learn from the said case?

China's Lenovo Acquires IBM's PC Operations costs, which meant more sales volume, and 27 match Western companies on product innovation differentiation, Yn late 2004, the Chinese personal computer manufacturer and brand Lenovo stunned the business world when it announced that Their solution was to acquire IBM's PC business, which it would acquire IBM's PC operations for $1.25 billion. held 6 percent of the global market in 2004. The IBM Lenovo, formerly known as Legend, was founded in 1984 by purchase not only gave Lenovo potential scale economies a group of young Chinese scientists with government renowned engineering skills, exemplified by the company's and global reach, but it also brought Lenovo IBM's financing. The company started as a distributor of computers best-selling line of ThinkPad laptop computers, and and printers, selling IBM, ACT, and Hewlett-Packard brands. IBM's extensive sales force and long-established In the late 1980s, however, the company moved to customers. Top executives at Lenovo were smart enough manufacturing and began to design, make, and sell its own to realize that the acquisition would have little value if personal computers. Taking advantage of China's low labor TBM's managers and engineers left the company, so they costs, Lenovo quickly emerged as a low-cost provider- made another surprising decision+they moved Tenovo's By 2004, the company led the PC market in China, where global headquarters to New York! Moreover, the former it had a 26 percent share. But for Lenovo's founders, this head of IBM's PC division, Stephen Ward, was appointed was not enough. They were worried about the entry of CEO of Lenovo, while Yang Yuanqing, the former CEO of efficient foreign competitors, such as Dell; into the Chinese Lenovo, will become chairman, and Lenovo's Mary Ma will market. Lenovo might have low labor costs, but its be CFO. The 30-member top management team is split 2.3 percent share of global PC sales left it trailing far behind down the middle-half Chinese, half American-and Dell and Hewlett-Packard, which held 18.3 percent and boasts more women than men. English has been declared 15.7 percent of the global market, respectively. Dell and HP the company's new business language. The goal, according could realize substantial conomies of scale from their to Yang, is to transform Lenovo into a truly global glcbal volume. As a result, increasingly they were able to corporation capable of going head-to-head with Dell in the match Lenovo on costs. At the same time, Lenovo's battle for dominance in the global PC business. managers wondered whether it was time to expand internationaliy and turn Lenovo into a global brand to deal Sources: D. Barboza, "An Unknown Giant Flexes Its Muscles," The Vew York Times, December 4, 2004, pp. B1, B3; D. Roberts and L. Lee, "Easi with Dell at home, and expand into the global marketplace, Meets West," BusinessWeek, May 9, 2005, pp. 1-4; and C. Foreile, How Lenovo's managers realized that they needed to do two IBM's Ward Will Lead China's Largest PC Company." The Wall Street thing : 411 attain greater scale economies to further lower Journal Aprii 21, 2005, p. 6