Lenovo's Transition

S1 Ep 3 Tech Giants

Lenovo's Transition

Introduction

Lenovo is a China-based worldwide organization established by Liu Chuanzhi on 1st November 1984. It began under the name legend. In 2003, Due to its extension in other instead of china organization change its name to Lenovo. In which "Le" comes from their old name and "Novo" signifies anew. It is a multi-categorical Tech giant that makes personal computers, phones, Smart TVs, etc. It works in more than 60 nations and sells its products in 160 nations—this article about Lenovo's Personal Computers and transition.

The story of the Liu Chuan Zhi (brief) 

Liu Chuan Zhi was born on 29 April 1944. In the early year of his life, Liu Chuan Zhi wants to be an army person, but the Chinese army rejected him due to some issues. So he studied radar at Xidian university and worked in the China Academy of Science (CAS). But due to low wages (¥ 100), he left CAS and founded the company with 10 members at the start. For founding, he took a loan from CAS and named it Legend. 

Lenovo

Relation with IBM

International Business Machine Corp(IBM) was a Giant in the personal computer in the late 20th century. In 1985, after just 1 year of beginning, Legend(now Lenovo) sold circuit boards to IBM. It was their 1st great success. And In 2005, Lenovo acquired IBM's line of personal's computers and tablets in $1.25 B and an additional $500 M of IBM's debt. And With the help of a great advertising campaign, Lenovo absorbed the whole IBM Computer market. By this Lenovo's improved Its global share in Personal's computer.

Public offering and changing the name to Lenovo

In 1994 legend (now Lenovo) became public in Hong Kong IPO and raised the US $30 million. Till the year 2000, legend (now Lenovo) was leading the industry of personal computers in China and was ready to expand internationally. But In 2003, Due to its extension in other instead of china organization change its name to Lenovo. In which "Le" comes from their old name and "Novo" signifies anew. For advertisement purposes, Lenovo uses ¥ 200 M in that same year.

The year 1988   

After 4 years of its life span, they decided to move from mainland China to Hong kong. They bought a new office in hong kong. But they have only 5 employees, so they required more. In the same year, they placed 1st recruitment advertisement on the front page of china youth news. The number of applicants, 500, 280, was chosen to take a written employment exam. 120 of these applicants were met face to face. Even though interviewers at first just had the power to enlist 16 individuals, 58 were given offers. The new staff included 18 individuals with graduate degrees, 37 with under-graduate degrees, and three understudies with no college-level education.

Fact:- The present CEO of Lenovo Yang Yuanqing, was part of an above-discussed group.  

logo under transition
Source of image: 1000 logos

Microsoft Deal and Confusion 

In 2016, Lenovo sealed a deal with Microsoft for Operating System(Windows) before Lenovo sell all its Personal Computers Without and default OS. In 2008, the company sold its phone division for $100 M because they only focused on Personal computer decisions. But In the Next year, 2009, they rebought their phone division in $200 M. And in 2014, Lenovo bought Motorola from Google for the US $2.91 billion. Google just needed some info in Motorola mobile Division.  

2016 Lowes

In 2006, Expert said revenue for the year of Lenovo will be par above $100 M, but their revenue was below $100 M., So the stock price of the company drastically declined.

Transition 

Lenovo under transition toward Sevice-led organization. Lenovo is using 3's strategy, which is as follow:-

1)Smart IoT(Internet of thing):- This is further divided by Lenovo into the three

• They want to make current devices upgraded to the time.
• They want to launch a new device which will help them to compete in future
• Lenovo will be embedding their technology to other 3rd parties companies to make them smarter. 

2)Lenovo is building smart infrastructure for everything related to the data, from storing it to processing it. They are taking it very seriously.

3)They will be providing the solution in a wide range of categories like smart manufacturing, smart utility, Smart healthcare, Smart Cities, Smart Agricultural, etc. In the current situation, Lenovo is providing solutions wide range by themselves or with the help of 3rd party companies.

They are aiming to lead the technology industries soon. 

               

Lenovo's youtube:-
Wide range of product

Lenovo laptop controversy

In 2015, Lenovo was found installing a malicious program in the deceives in customer feedback program This was found by Computerworld author Michael Horowitz, who had bought a few Think product with the Customer Feedback program. In the beginning, they didn't even look at it seriously, but after 1 month, under the pressure of a customer, the CEO Yang Yuanqing comes up said they are stoping the program. But, In 2016, June duolab reported the same malicious program in the thinks system. In 2019, there were razor phone-related controversies. So after 2016 company is undergoing transformation but also low times too.

 Next time we will be discussing how great it is, tata, so stay tuned.

THE END