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DELL vs LENOVO

SOP 2
Alex George Aparna mohan Bijesh S B Geethu K Ravi Rahul P M Vinayak S L

summary
Lenovo acquired IBM PC division in 2002 Lenovo expand its business to US They concentrated in law cost segment in US Dell entered china in 1988 Dell follows direct business model It was failure in china

About Dell
Founded by Michael Dell in 1984 Third largest PC vendor in the world Ranked 44 in the fortune 500 list More than 110000 employees world wide Direct selling

About Lenovo
Chinese based company, established in 1984 Market leader in china Acquired IBMs PC division in 2002 Worlds largest PC vendor

Chinese population is 22% of world population Chinese people enquire more about a product before they buy Low percapita income Only few people in china use credit card China is famous in low cost products

2.What factors according to you are different in China which Dell had not experienced in their home market?

3. What is the problem associated with Lenovo's startegy?


loss of the IBM brand name for laptops

4. Should Dell adapt its business model in China?


No, it cant adapt direct sale model in china.

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