international strategic alliance between (2)

8/10/2019 International Strategic Alliance Between (2)

http://slidepdf.com/reader/full/international-strategic-alliance-between-2 1/11

LENOVO AND IBM



An strategic alliance is an agreement for cooperation

among two or more independent firms to work

together toward common objectives.

It is a collaboration with aim of synergy where each

partner hopes for greater benefit than as individual

efforts.

When firms of different company alliance together itis called international strategic alliance.



Enables to gain competitive advantage in new

economy

Grow and expand more quickly and efficiently

Learning from partners and developing competencies

that may be more widely exploited elsewhere

To get benefits from established channels of

distribution , marketing, brand reputation etc



ALLIANCE BETWEEN

LENOVO AND IBM



Lenovo Group Limited is a

Chinese multinational technology firm with

headquarters in Beijing, China

It sells personal computers, tablet computers,Smartphones, workstations, servers, electronic

storage devices, IT management software and smart

televisions

Lenovo has operations in more than 60 countries and

sells its products in around 160 countries and has

now become the 3rd pc provider in the world.



IBM is an

American multinational technology and consulting c

orporation

headquarter in New York, United States manufactures and markets

computer hardware and software, and

offers infrastructure, hosting and consulting

services in areas ranging from mainframecomputers to nanotechnology



ALLIANCE: December 8th, 2004

VISSION: to develop and deliver industry specific,

integrated technology solutions for enterprises, small

and mid-market businesses and individuals AGREEMENT: The agreement aligns Lenovo's

expertise in building the best engineered personal

computers with IBM's extensive IT services and

technology capabilities



To deliver end-to-end technology solutions that meet

the business needs of clients in industries such as

healthcare, financial services, education, retail and

government



Lenovo had little business outside the country

The increasing fierce competition from aggressive

foreign rivals such as Dell and HP

Both the companies was financial problems

Shares of the Lenovo dropped nearly 60 per cent in

the year 2004



Lenovo intended to expand its business globally

Lenovo needs a well-developed worldwide

distribution network

IBM’s presence in the world’s fastest growing IT

market

China is a tough nut to crack especially for outsiders



FINANCIAL ASPECTS-the pressure from the

market leader Hewlett-Packard and Dell and low

confidence of the shareholders

BRANDING-‘Lenovo’ name is almost unknownoutside of China, it is hard for marketers to build an

international brand from scratch

CULTURAL CLASHES- The differences can be

caused from the different corporate cultures or

national cultures.

international strategic alliance between (2)

Documents