Lenovo Group Limited: SWOT Analysis & Company Profile by BusinessReview

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Business Review’s Lenovo Group Limited contains a company overview, key facts, locations and subsidiaries, news and events as well as a SWOT analysis of the company.

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									Lenovo Group Limited

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Lenovo Group Limited: SWOT Analysis &
Company Profile


Reference code: BRTC056CP10-Q4

Published: Oct 2010




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Lenovo Group Limited - SWOT Profile                                                 Page 1
Lenovo Group Limited

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Lenovo Group Limited - Company Overview

Lenovo Group Limited (Lenovo) is a leading provider of computer and related products worldwide. The company is
engaged in developing, manufacturing, and marketing of products related to information technology (IT) industry.
Lenovo’s key products include laptops, desktops, workstations, servers, monitors, and accessories. Lenovo divided its
products under two groups, namely, Think Product Group and Idea Product Group. In addition, the company offers IT
services, property holding and property management, procurement agency, group treasury, supply chain management,
intellectual property rights management, and repair services for computer hardware and software systems. It operates its
business under three reportable segments, namely, China, Emerging Markets (excluding China) and Mature Markets.
Lenovo is headquartered at Quarry Bay, Hong Kong.


Financial Performance

The company reported revenue of USD 16604.81 million during the fiscal year ended March 31, 2010 (fiscal year 2010).
The company's revenue grew at a CAGR of 0.77% during the period 2008-2010 with a year on year growth of 11.43%
over fiscal year 2009. During the fiscal year 2010, its operating margin was 1.32% as against the operating margin of -
1.29% in fiscal year 2009. During the fiscal year 2010, the company registered a net margin of 0.78% as against the net
margin of -1.52% in the fiscal year 2009.




Lenovo Group Limited - Key Facts

Lenovo Group Limited, Key Facts

                                  23th Floor, Lincoln House, Hong
                                  Kong, , , Hong Kong Special       Ticker Symbol, Stock           0992 (Hong Kong Stock
Corporate Address:                                                                                 Exchange)
                                                                    Exchange
                                  Administrative Region of China


Telephone                         + 852 25900228                    No. of Employees               25,396



Fax                               + 852 25165384                    Financial Year End             March



URL                               www.lenovo.com                    Revenue (in USD Million)       N/A


                                  Technology and
Industry
                                  Communications


                                  China, Hong Kong Special Administrative Region of China, India, Japan, Singapore, France, Poland,
Locations                         United States, Mexico

Source: Annual Report, Company Website, Primary and Secondary Research




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Lenovo Group Limited - SWOT Profile                                                                                        Page 2
Lenovo Group Limited

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Lenovo Group Limited - Business Description

Lenovo Group Limited (Lenovo) is a Hong Kong-based company, engaged in developing, manufacturing, and marketing
IT-related products. Its products are catered to both commercial and consumer segments. Lenovo’s key products include
laptops, desktops, workstations, servers, monitors, and accessories. The company also offers IT services, property
holding and property management, procurement agency, treasury, supply chain management, intellectual property rights
management, and repair services for computer hardware and software systems.

The company has classified its business operations under three reportable segment, China, Emerging Markets (excluding
China), and Mature Markets. During the fiscal year ended March 31, 2010, the company generated 47.5% of total
revenues from China segment, 15.9% of total revenues from Emerging Markets (excluding China), and 36.57% of total
revenues from Mature markets.

The company categorized its product offerings into three principal groups, namely, Think Product Group, Idea Product
Group, and Mobile Internet Group.

Under Think Product Group, the company provides commercial PCs to address commercial customers. Further, it also
expanded its portfolio of Lenovo and ThinkPad notebooks to cater the SMB segment. In this direction, in the recent past,
the company launched ThinkPad X300 notebook, which is the thinnest and lightest full-function notebook in its class.
ThinkPad X300 also integrates various technologies that include solid-state drive storage, LED backlit display, ultra-long
battery life, and enhanced wireless connectivity and also features low-voltage processors. It also introduced thinnest and
lightest flagship T Series model, the T400s. In addition, it launched all-new ThinkPad Edge and ThinkPad X100e product
lines. Further, Lenovo introduced ThinkPad lineup, based on Intel Centrino Pro processor platform. Moreover, Lenovo
launched ThinkCentre M57e, a high-performance and high-value desktop PC targeted at large businesses, and
ThinkCentre A57, a desktop designed for the SMB customers. The company marketed two space-saving, secure,
manageable, and environment-responsible desktops, including ThinkCentre M57p and M57 Eco Ultra Small Form Factor.
The company’s Think branded PC segment grew at 9% year-on-year in the fiscal year 2010. During the fiscal year ended
March 31, 2010, the company generated over 65% of its total revenues from Think Product Group.

The company, under Ideal Products Group is focused on consumer and entry SMB products. Lenovo’s Idea branded PC
shipments showed a year-on-year increase of 70%, and a year-on-year increase of 295% outside China. During the fiscal
year 2010, Idea notebooks grew at 98% by unit shipments over the fiscal year 2009, while Idea desktops grew at 18% in
the fiscal year 2010 over the fiscal year 2009. During the fiscal year 2010, Ideal Products Group generated 33% of the
company’s total revenues. Mobile Internet Group, a new group was formed upon the reacquisition of Lenovo Mobile in
January 2010.

Lenovo operates over 40 subsidiaries across Asia Pacific, Europe, Middle East, Africa, and Americas. Some of the
principal subsidiaries of the company include Lenovo (Beijing) Limited, Lenovo (Shanghai) Co., Ltd., Lenovo (Asia Pacific)
Limited, and Lenovo (Belgium) Sprl. It also comprises of Lenovo (Japan) Ltd, Lenovo Mexico, S. de R.L. de C.V., Lenovo
Technology (United Kingdom) Limited, and Lenovo (United States) Inc.

Recently, the company introduced first value line of dual processor servers, including ThinkServer RD230, RD240 and
TD230. Lenovo signed a distribution agreement with Brightpoint North America LP, a subsidiary of Brightpoint, Inc. Also,
the company signed an alliance with Kaseya, a leading global provider of automated systems management software to
help channel partners in North America to enhance and expand their businesses through remote IT management tools
and PC technology.




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Lenovo Group Limited - SWOT Profile                                                                              Page 3
Lenovo Group Limited

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Lenovo Group Limited - Major Products and Services

Lenovo Group Limited is one of the world’s leading providers of personal computers. The compnay's key products and
services include:

Lenovo Group Limited, Major Products and Services
Products:

Notebooks

Personal Computers

Workstations

Servers

Accessories and upgrades

Software

Batteries and Power

Dock and Port Replicators

Carrying Cases

Monitors

Services:

Protection

Financing

Disposal and recycling

Deployment

Solutions for small business

Solutions for large enterprise
Source: Annual Report, Company Website, Primary and Secondary Research




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Lenovo Group Limited - SWOT Profile                                                                           Page 4
Lenovo Group Limited

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Lenovo Group Limited - History

Lenovo Group Limited, History

    Year                Event type                                                   Description


   2009   
								
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