Project #50382 - Entrepreneurship

Lenovo: Countering the Dell Challenge (HKU356)

Outline Form Response. 10-12 pages

1.Lenovo is the market leader in the PRC; Dell the market leader in much of the rest of the world. Describe, compare and analyze the business models of these two competitors in their respective markets. How are they similar? How are they different? Why has each been successful?

2.Based on the exhibits and tables in the case, analyze the opportunity by market segment in the PRC over the next five years. What trends are apparent in the PC pricing? Given the trends and opportunities in the market, what market segments would be most attractive to Dell, leveraging the strengths of their manufacturing strategies and direct sales model? Which segments would present the greatest challenges? Consider the issues addressed in Growth Outside the Core in your response.

3.Outline the “most likely” strategy for Dell in engaging this market in terms of target market segments, product offerings, distribution and pricing strategies. Consider the ideas from Growth Outside the Core and Three Strategies for Managing Fast Growth in formulating your response.

4.Outline a marketing strategy for Lenovo, with the following objectives: (a) blunt the thrust of Dell’s “mostly likely “ strategy and minimize its market penetration; (b) aggressively grow Lenovo’s share in the markets in which their competitive advantage is greatest relative to Dell’s direct model; and (c) maintain and increase the company’s overall market share. Consider the ideas from Growth Outside the Core and Three Strategies for Managing Fast Growth in formulating your response.

5.Evaluate the rate of Internet penetration in the PRC. How is this likely to impact the sales of PCs? How can Lenovo most effectively exploit this opportunity?

6.Based on the data provided in the case, develop a five year forecast of the results of your recommended strategies for Dell and Lenovo, projecting the unit sales and market shares of Lenovo, Dell, and the other competitors (as a group). Use the data provided in the exhibits and attach a spreadsheet that presents your forecast and clearly identifies your assumptions and methodology. (see grade sheet for recommended approach to creation of demand forecast)

-Outline Form Response. 10-12 pages. The assignments specify an outline form response. I will expect a statement of the question followed by a bulleted or numbered list of the key items in your response. A format example is posted.

-Please use the attached documents!

-Identifying key organizational issues (decisions or actions required in a given situation).

 analyzing the situation (identifying problems; understanding the underlying causal factors; and identifying and evaluating options)

 recommending specific actions (what should be done, by whom, when and in what sequence) to address the key issues.

Specific questions have been provided for each case to focus your analysis. In general, there are no “right” or “wrong” answers for a specific case – different approaches and insights are possible, depending on your individual perspective and approach. Regardless of your approach and conclusions, I expect you to make recommendations that: (1) address the identified issues; (2) follow logically from your analysis and conclusions; and (3) make sense (are feasible) in the context of the case situation.

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Due By (Pacific Time) 12/08/2014 06:00 pm
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