Case | HBS Case Collection | July 2006 (Revised October 2006)
Lenovo: Building A Global Brand
by John A. Quelch and Carin-Isabel Knoop
Announced in December 2004, the $1.75 billion acquisition of IBM's PC division by Lenovo, China's largest PC maker, made headlines around the world. A relative upstart in the business, Lenovo acquired the division of IBM that invented the PC in 1981. While Lenovo was arguably the best-known brand in China, it was virtually unknown in the rest of the world. In 2004, over 90% of Lenovo's revenues came from China, but with this major deal, Lenovo aimed to become a global technology giant. As a new multinational with 20,000 employees operating in 138 countries, Lenovo needed a global marketing and branding strategy to extend its global reach. This meant determining what Lenovo stood for and designing products that supported that claim. In January 2006, 13 months after the deal was announced and eight months after it closed, Lenovo is preparing for the intense limelight that would come with its sponsorship of the February 2006 Turin Winter Olympics. There, it plans to introduce a Lenovo-branded product line designed from the bottom up for the small to medium enterprise space--a move considered very bold and risky by many observers.
Keywords: Marketing Strategy; Multinational Firms and Management; Hardware; Global Strategy; Acquisition; Brands and Branding; Manufacturing Industry; Computer Industry; China;
The global brand face-off In this case, the main issue is Espoir Cosmetics tries to change its brand from local to global brand. Natasha Singh, global marketing officer, was the one who planned to offer sponsorship for upcoming movie ”Diana’s she devils ”to extend their selling scope to worldwide especially Europe, South Asia, South America. She truly believed that movie would be a best strategy to induce people’s desire to buy the cosmetics even though in various countries. However, not all the local executives can approve her global promotion which brought out some essential problems to obstruct the success of being global brand. There are several problems are discovered after she met local executives from different areas. First, global manager and local executives cannot coordinate with each others. For example, Singh cannot bear with other local executives’ opinions like use Miss Ukraine to promote the cosmetics rather than movie promotion. On the other side, local executives do not agree global promotion is worth to strive for and not