Lenovo Quotes

The collapse, for example, of IBM’s legendary 80-year-old hardware business in the 1990s sounds like a classic P-type story. New technology (personal computers) displaces old (mainframes) and wipes out incumbent (IBM). But it wasn’t. IBM, unlike all its mainframe competitors, mastered the new technology. Within three years of launching its first PC, in 1981, IBM achieved $5 billion in sales and the #1 position, with everyone else either far behind or out of the business entirely (Apple, Tandy, Commodore, DEC, Honeywell, Sperry, etc.). For decades, IBM dominated computers like Pan Am dominated international travel. Its $13 billion in sales in 1981 was more than its next seven competitors combined (the computer industry was referred to as “IBM and the Seven Dwarfs”). IBM jumped on the new PC like Trippe jumped on the new jet engines. IBM owned the computer world, so it outsourced two of the PC components, software and microprocessors, to two tiny companies: Microsoft and Intel. Microsoft had all of 32 employees. Intel desperately needed a cash infusion to survive. IBM soon discovered, however, that individual buyers care more about exchanging files with friends than the brand of their box. And to exchange files easily, what matters is the software and the microprocessor inside that box, not the logo of the company that assembled the box. IBM missed an S-type shift—a change in what customers care about. PC clones using Intel chips and Microsoft software drained IBM’s market share. In 1993, IBM lost $8.1 billion, its largest-ever loss. That year it let go over 100,000 employees, the largest layoff in corporate history. Ten years later, IBM sold what was left of its PC business to Lenovo. Today, the combined market value of Microsoft and Intel, the two tiny vendors IBM hired, is close to $1.5 trillion, more than ten times the value of IBM. IBM correctly anticipated a P-type loonshot and won the battle. But it missed a critical S-type loonshot, a software standard, and lost the war.

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In 2015, Lenovo was caught selling computers with malware.

In 2005, IBM sold its PC business to Lenovo. A five forces analysis makes clear immediately why the business had become so unattractive that even one of its marquee players decided to throw in the towel. Its two superpower suppliers, Microsoft and Intel, captured almost all of the value the industry created. And as the industry matured, the PC itself had become a commodity, giving customers more power. Since one beige box was as good as another, customers could easily switch brands in order to get a good price. Rivalry among PC makers was intensifying, with more price pressure coming from emerging Asian producers. To top it off, a new generation of potential substitutes was taking off—a range of mobile devices that had some of the same functionality as PCs.

Lenovo laptops are designed with a balance of functionality and innovation, ensuring that users have the necessary tools to succeed in both work and play. Whether for multitasking, media creation, or gaming, Lenovo laptops provide a versatile and powerful computing experience.

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(Google did, however, eventually say that it is the largest computer manufacturer in the world—making its own servers requires it to build more units every year than the industry giants HP, Dell, and Lenovo.

a banker named Jean Liu when she found herself stranded with three unhappy children on a street corner in Beijing, midst a heavy rain, unable to flag down a taxi. Liu had been raised on tech—her father founded Lenovo, which purchased IBM’s personal computer business and is now the world’s largest PC maker—and she had done postgraduate work in computer science at Harvard.

Motorola Mobility and IBM’s personal computer division have been acquired by Lenovo;66 Smithfield Foods, the world’s largest pork producer, is owned by the WH Group;67 Legendary Pictures Productions, LLC, is owned by the Wanda Group,68 which also has held a significant stake in AMC Theatres, the largest chain in America.69

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Lenovo did not make itself the world’s biggest personal-computer maker by copying American competitors. Instead, it applied beyond China’s borders the practices it developed for China, while, at the same time, consciously redesigning itself to be an international business.

The first is your classic product company. Think Lenovo in consumer electronics. Lenovo makes and sells physical things. It builds physical assets, such as factories and distribution centers, in order to make its products and get them to consumers. Almost all manufacturing has worked in this linear fashion over the last century. So have distributors and resellers, which are companies that build or lease physical assets or technologies in order to distribute and sell physical products.

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