The difference between Dell and Lenovo

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					The difference between Dell and Lenovo
Lenovo is China's best companies, Dell is the world's best
companies to explore the gap between Lenovo and Dell, our focus mainly in three
aspects. First: Lenovo and Dell are not the core technology, but they are the core
competitive ability of its own outstanding enterprises, their formative history of the
very short, they are also fully Butong profitable 模式, Lenovo is the Chinese class
Chenggong, Dell, the world-class The success of this gap is what? Second: Dell is the
world's oldest PC, Lenovo is China's oldest PC World boss
came to China, followed by a natural mystery is: the localization of Dell and Lenovo
in the international battle of who is the winner ? Third: the internal gap between
Lenovo and Dell Where is? Lenovo to become a world-class excellent company to
learn what needs to Dell?

On what basis cohesion of the people: Lenovo and Dell's cultural concepts

At any time, business leaders realize the company's business processes are
the company's development of an asset, which is the company culture pool
staff a "not copy" approach

All world-class business leaders in emphasis "spirit" of the time,
have emphasized the justice and humanity's pursuit of customer
value-based, if we have the obvious limitations of the times some things as permanent,
an inevitable result of this deification is "cocoon."
Lenovo is the company has a distinct cultural identity. This distinctive performance in
two ways: first, China's IT industry association as boss        Lenovo Lenovo
culture of success includes a unique concept and philosophy. Such as
Lenovo's core philosophy is "the employee's personal
pursuit into the company's long term development," its
enterprise spirit is "realistic, enterprising, innovative", it not
only standardized enterprise "work style", as well as
"life style", which makes it another shot to play with those parts
of the "computer company" to distinguish; second, Lenovo and
all the successful Chinese companies as a great man behind Liu, Lenovo's
culture is also everywhere Liu embodies the shadow. The principle of doing things
such as Lenovo: "Sprinkle a layer of soil, compaction, and then sprinkle a
layer of soil, then compacted the" principle of doing business associations
such as: "things can not be profitable dry; making money, but do not vote
from the money that it can not dry; investment of money and making money, but also
people who do not credible, such a thing is not competent. " From these
colloquial principle, we can believe that this is basically "Liu

In fact, the association of the Liu "quotations" of such
compliance may start the process of IT companies on the successful experience of a
"path dependence" - As the entrepreneur's unique
insight beyond the uncertainty created a brilliant business enterprises this will be such
a "unique understanding" standard for the company
"principle or spirit." Dell             such as business leaders on
"quotations" of compliance, said that Dell's Office of
the design is very simple with little decoration, the only decoration is Dell's
own quotes: "Customer Experience: grasp it."

At any time, business leaders realize the company's business processes are
the development of the company a fortune. Best companies in the world, we can be
seen everywhere in this "business leaders Quotations" respect
and inheritance, such as Hewlett-Packard Company "HPWay"
Huipuzhidao      carried    forward,     Motorola    Galvin   "Motorola
family" concept of inheritance, Dell on Dell's own
"efficiency first" policy, love, these companies are an important
part of culture, is their pool of employees of a "not copy"

However, I would like to remind the association noted that all world-class business
leaders in stressed that the "spirit" when in stress two points:
first, the axiom of humanity, such as Nokia, people-oriented; the second is based on
customer value pursuit, such as Dell's emphasis on the customer and
efficiency, these two are super times. If we have the obvious limitations of the times
some of the things as eternal, inevitable result of this deification of the

Business Strategy and Competitive Advantage: Lenovo and Dell battle

Lenovo is the world's first star for the introduction of television advertising
of PC manufacturers, from the 1 +1 computers, to various series of home or business
machine, Lenovo will play all of this consumption of PC brands, the price sensitivity
of hidden " value-added game "

In any battle, if you want to play PC games have had to face the Dell model of the
three golden rules: reduced inventory, listen to customer comments; direct sales.

In 2001, Yang and his team have a "420 Pledging Conference",
at which he announced a new Lenovo's strategic goals: "We
must think of all my colleagues and together with Lenovo in 10 years to become the
world's leading high-tech companies to enter the Global 500. "
In this "strategic" system, he also announced a
"three-Lenovo products business chain": the first layer is to
provide the cash flow business chain business desktop, home desktop, notebook and
motherboard business, the second layer growth business is a server, handheld,
peripherals, etc., supporting the future development of the so-called third category of
business is business services category, including information operations, IT services
and IT141, etc. This is to a more sustainable long-term development needs of planting,
cultivating long-term business. In accordance with the association's
strategic layout, to help add value through service, product development services to
help business development strategy, taking into account the three dimensions of

"This is an investment not only help us to improve the effectiveness, but
also reduce the investment risk of business development strategy," Yang is
confident to this. However, the familiar theory of the three levels of business people
know that this business strategy, The Key to a so-called "ladder
realization": "From Reality to the future of the
ladder" from the first layer of business, that is, greater profit and cash flow
core business, supporting growth in the second tier and third tier seed business
operations. And "never came to the ladder now," is through the
cultivation of the seed business, testing, selection and elimination of the business
chain to ensure continued.

From this point of view think that we might not as optimistic as Yang. The first level
of Lenovo PC business, obviously will not be able to avoid war with Dell, the third
level in the market, IBM, the new HP already have arrived. "From now to
the future," or from "the future now" are facing
enormous challenges, the problem is Lenovo's successful strategy over the
last model on new cases, "reassert brave."

In a given industry, the main contention of the competitive advantage is built around
the so-called "three-dimensional competitive advantage" -
customer advantages, geographical advantages and product advantages launched.
Lenovo's success is largely integrates these three, creatively converted into
high-tech competition, consumption of PC competition. Through the grasp of
consumer psychology, through branding, distribution channels controlled by the
regional network building, through the state-owned enterprises and government sector
to establish business connections, Lenovo will be point of sale, consumers (especially
the government and enterprises) and of its own into the triangular relationship
between a "value added value game", each participant received
a benefit from the game, making Lenovo the largest winner. From 1 +1 computers, to
various series of home or business machine, Lenovo is the price sensitivity to play
hide the "value game." Lenovo is the world's first
star for the introduction of television advertising of PC manufacturers, this will be PC
brand of the Chinese consumer to create, successfully channel profit achieved a new
height, which will only "hold high (price) high hit (central city)
"in IBM, Compaq, HP, etc. out of the stage.
However, this trick on the Dell basically useless. In any battle, if you want to play PC
games have had to face the Dell model of the three golden rules (Three GoldenRules):
reduced inventory, listening to customers, and direct sales, the three golden rule of
product, customers and to create regional competitive advantage, in addition to
China's markets are fighting and winning repeatedly. If you can not come
up from the costs and benefits of programs lead off the game, the result was that they
were off, this is IBM, Compaq and other PC out the reasons. Not IBM, Compaq and
Dell do not have the strength for a long fight, but IBM, Compaq, Dell and better
thought out than attracted when the boss. This "trick" is the core
competitive advantage and profitability under competitive binding mode. So I have to
emphasize a point: Lenovo's entry into the international market more than
just an issue of scale and brand, but its advantages and He Xin Jing Zheng Jie He
Competitiveness profit model under question why the Acer eventually Wu Fa Shi
Chang Cheng Kung University in international device, stems from that.

Core competence dispute under the profit model: Lenovo and Dell who is the winner?

Lenovo's management will be through the distribution channel
manufacturers, large distributors and retailers, the relationship between the consumer
into a "win" and achieve value-added distributors. At this point,
the association called "world class"
Dell and Lenovo's success, is that they are able to integrate into the core
competitiveness among organizational behavior, has been melting into each employee
based on the level of specific acts so far, which makes other companies even know
their model can not imitation and replication.
Dell playing a "low-cost high-quality" games, but Lenovo is
playing "brand support channel" value-added game, when Dell
and Lenovo met Dell's core competencies will little by little, the potential
will eventually play the contrary, Lenovo, but may lose a little bit advantage.
In the industry view, Dell and Lenovo are very exciting encounter between the core
competitiveness of their composition. Generally see PC's fighting started
around the so-called smile curve, this curve is a U-curve. In this curve, the value of
the lowest point is simple OEM assembly, on the left along the production display,
memory, CPU, and gradually increase the value of software, etc., right along the
localization of parts production, marketing, sales pipeline, the electronic commerce
increase. Intel, Microsoft and other high-end value of the left, of course, won in the
PC field of high profits, while Dell and Lenovo in the right side, but also through the
flame into China PC's international boss boss.

However, while Dell and Lenovo are all the right end of the smile curve, but their
core competitiveness is entirely different.

What is a core competence? Core competitive power is contained in the enterprise
itself, and organizational skills and technology that integrates a combination of
collective learning is the ability of the enterprise, Er Bu Shi a single, independent
skills Huo technology. According to this concept, profitable products, technology,
brands, patents, physical assets, communication ability, teamwork, change
management, quality, productivity, customer satisfaction, etc. are not core

Therefore, Dell's core competitiveness is not really direct, but on the
low-cost direct sales model parts supply and assembly operation system's
implementation capacity. It is said that Dell is the only not to visit its parts supply and
assembly systems, that is, Dell came up after receiving orders, fast and low-cost spare
parts supply and assembly systems, allows consumers to accept low prices
Personalized service. This is why IBM and Compaq have all imitate Dell's
direct sales, but are not a success, because the cost is too high or too low efficiency.

Lenovo's core competitiveness, on the contrary, Lenovo's core
competitiveness is its ability to grasp the value-added distribution system, that is, the
management of distribution channels through the production and the major
distributors and retailers into the relationship between consumers
"win" and achieve value-added distributors. At this point, the
association called "world class." Correspond with this model is,
IBM, Compaq, China adopted a number of agents model that in the fierce competition
can guarantee the interests of suppliers, without contributing to the interests of dealers,
the results again good things can not make the scale, only defeated.

More crucial here is that this core competence is built on various levels in the
company, Dell and Lenovo's success, is that they are able to integrate into
the core competitiveness among organizational behavior, has been melting into each
staff levels based on specific acts so far, which makes other companies even know
their model can not be imitated and duplicated. It would appear, if Dell is
Dell's successful direct sales representation, then the association of the
distribution of value-added system is Lenovo's success to grasp the root

Therefore, Dell and Lenovo battle has great strategic value, because it can answer this
in the PC industry, competition, behind Dell's direct model parts supply
and assembly of low-cost operation system over the distribution of value-added
system Lenovo or the distribution of value-added system of Lenovo over
Dell's direct model behind the low-cost spare parts supply and assembly
operation system, or the issue of coexistence between the two people are trying
different angles and from the fact that, guess the new century, Dell and Lenovo
China's PC industry Who is the winner of the battle.

If we view this as a battle to see Dell and Lenovo, will find the key point of this fight
is the localization of the expansion capacity of Dell and Lenovo's
international expansion capability. I am the judge, when met, when Dell and Lenovo,
Lenovo brand support through the distribution of profits generated by the model
becomes "false profits" - because Dell is playing
"low-cost high-quality" game, Lenovo's play is
"supporting the brand channel" value-added game, when Dell
and Lenovo met Dell's core competencies will little by little, the potential
will eventually play the contrary, Lenovo, they may lose their edge a little bit.

Why Lenovo is losing little by little edge? The reason is that Lenovo's core
competitiveness of its "international" no help, and
Dell's core competence is precisely the association's nemesis.
Why? Dell's direct sales model based on low-cost spare parts supply and
assembly operation of the system is low cost just to play the game. It is like the
Dell's vice president for global operations, as Keith ? Maxwell stresses:
"The current system requires the entire organizational integration of
production, there is no cushion. To product backlog is impossible, because there is no
backlog." The result is an order to shipping from Dell, the production
process takes only about a day and a half years, Dell's stock in 1995, the
number of days to 32 days, 1998 has been reduced to 7 days, is said to now greatly
reduced to 5 days. The IBM and Compaq was unable to do, think even more

Therefore, one can imagine the conclusion that the distribution of value-added system
once Lenovo and Dell direct sales model based on low-cost spare parts supply and
assembly operation of the system blows it, Lenovo and point of sale, consumers
(especially the government and enterprises) of may no longer exist between the
triangular relationship, because Dell's customers will be customized with
low cost, will become redundant retail outlets, so the consumer from the association
without a fight hand the enemy is to construct a more competitive integration of the
core competitive advantages and competitive profit model, any of its rivals will find
the face of this mode, if the attack in addition to failure or failure, the only way out is
in transition.

Dell's idea if we see more of the customer, speed, and the emphasis on the
company's operations, then to the current Lenovo culture more
"Chinese                  characteristics"                  and

Lenovo is a banner of China's enterprises, meaning that a flag composed of
three parts: First: Lenovo is the world-class IT industry, successful companies such as
IBM, Compaq, HP and other leading out of camp from the computer market, local
companies in China ; Second: Lenovo is a "set strategy," said a
Chinese company, and successfully completed the updating of its leaders; Third: The
Legend leader Liu has a unique business ideas and personal charm.
Dell is the world's corporate banner, compared to Lenovo, Dell, meaning
that the flag is more epoch-making significance. First: Dell is not recognized as the
core technology of high-tech companies, a core technology of the computer is not able
to do the industry's oldest companies and a number of big companies such
as IBM, Compaq forced out of the dead, this is the core technology that superstition ,
or business failure is not attributable to the core technology of domestic enterprises is
undoubtedly a challenge; Second: Dell is the most recognized core competencies of
the company, all the people know that Dell is doing direct sales, many companies are
talking to Dell Science Direct, but not a challenge to succeed.

On the surface, Dell's model seems quite simple: direct sales to customers,
thereby reducing the cost of intermediaries, Daliang buy accessories to get lowest
price, and force the supplier to build its own warehouse near the factory, so that
within a few hours spare parts can be delivered. However, in my opinion,
Dell's success is a landmark, Dell achieved a great strategic success: do not
fight the enemy. This success in the past only Coca-Cola, Procter & Gamble
and other consumer goods companies do, and the current high-tech companies, only
Dell to do.

What is "not fighting the enemy" type of victory? The so-called
"winning without fighting the enemy" is constructed of a more
competitive edge to the core competitiveness and integration of competitive profit
model, any of its rivals will find the face of this mode, if the attack in addition to
failure or failure of The only way out is transformation - to open up another battlefield,
this is IBM, HP and other face of Dell's competitive landscape. Low-cost
direct sales with strategic options for business customers constitute Dell's
comparative advantage, but on the assembly and supply system design and
implementation capacity is Dell's core competitiveness, the combination of
the discovery makes the rival Dell, Dell After price reductions have great profit
potential, the results would have to stay away.

Lenovo also has its own unique core competence, core competence, however this is
difficult to compare with its competitive advantage - our brand strength and channel
integration. Dell's business model depends on the supply system, but Dell
does not control their loyalty to the contrary, often by Dell cut prices Cushiduishou
Jiang Jia, the final result in lower prices Lai requirements Zhenggehangye suppliers
Xiangdi supply prices so that consumers receive the benefits, which Jiang Gui Mo
bigger, in turn, increased purchases by the benefits to suppliers. But Lenovo will have
to carefully model the dealer to design a win-win value chain, and the value chain
depends on the value consumers associate the brand recognition (pay more).

So, Lenovo announced its entry into the computer direct marketing news, I am very
understanding. Fortunately, soon after the association announced that transformation,
weight will be IBM as an example. In fact, the situation in the then IBM, HP who
have happened. In the computer industry has proven the fact that any distribution of
married manufacturers succeed in direct sales of a war with Dell, the final odds are
against us. So, I think the recommendations are:

First: Do not try to distributors and direct online at the same time the two operations,
to lead the distributor of the past turn to do "direct curve",
which remains a "high cost" of the road, I hope that Lenovo will
not forget from distribution of value-added model to get the truth: the role of
education is limited, only the common interest is eternal. Do a good job distribution,
may also be "cash flow" hold, as the foundation for future
business growth. Liu this point on the right, in terms of the PC industry, China can
continue to enlarge the pie, we hope the competition will not light when the attention
pie, but also pay attention to how big this cake.

Second: Do not try to quickly become an international PC boss. We have already said,
Lenovo's core competitiveness of its international basically did not help,
buttoned buttoned the Chinese market still may not be able to the international market,
peace of mind will make the Chinese market, Dell can not eat all of the market
Lenovo PC, still a struggle Moreover, there is a large IT services market.

Third: Legend of the future will be? Lenovo should have learned from
Dell's innovation and an important point, that is, the so-called core
technology or brand is also not a prerequisite for success, you can still research and
consumer access to new consumer to grasp the "core competitiveness
", so not too concerned about the so-called Lenovo's core
technology, Dell's core technology is not no boss can do the same? Lenovo
may be in the wireless terminal based on the consumer computer, and then embark on
a road in China.

We believe that Lenovo has begun to enter the "Yang" era, at
this point I suggest that truly understood the Liu Yang, it should be clear that
"Liu spirit" has on the 80's and 90's the
"signs of the times." Such as Lenovo's Web site, the
principle of doing business is still new Liu's words: "set foot on
a step, step indeed, and again set foot on a step, then step on fact, when the foot is a
solid yellow confirm the future of land and ran." What is behind this large
vernacular? Fact is that time, "plan benefits and market
interests" of a "deeply understood." What is
"realistic"?         Shi     Yuzhu's         "giant
building" is not a catchy title that is unable to withstand the temptation of
government officials and the repeated increase it?

So, with his proud Liu contrary, I think Lenovo Digital China's Guo Wei
Yang and do not necessarily really believe that these "legacy"
has little effect, so they took office the first thing is to find an international consulting
firm to do "strategic" because they really clear, heritage is
valuable, but the long-term association staff people gather definitely not the kind of
pragmatism Liu's "vernacular", but the same as the
establishment of the social value of HP's "philosophy of human
nature ", or the same as Dell's customer base built on
the" values ", but it all takes time.

"Initially, we are an entrepreneurial culture, the second stage is the
goal-oriented culture, the third stage is rule-oriented culture, family culture, the fourth
stage is the team, now is the entrepreneurial culture, turning a circle." Yang
Moreover, the "Global entrepreneurs ", said a press audio
applications, while another ten years of service in the first Lenovo executives
say," Lenovo's problem is not with the ability of controlling the
not very obedient people. "(" Global Entrepreneur "s

In fact, the problem is not the result is not "obedient", a
company in the pool of people is concerned, I think the key is what to gather. Such as
Dell, expressed in his autobiography clearly: Dell by focusing on facts and figures, is
responsible for the establishment of self-belief on the results to unite all the Dell
people. So think it through it? Dell's idea if we see more of the customer,
speed, and the emphasis on the company's operations, then to the current
Lenovo culture more "Chinese characteristics" and
"pragmatism." Lenovo back again when the new
"business culture" starting point, we still do not see this new
association which can be summed up lap run through the "rallying
point." For 10 years after China's efforts to become a
world-class company's CEO, the Yang is still long way to go, we all hope
is still on the line in a word: blessed. Taken away little by little in

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