Use the Theory relating to Adaptation, Aggregation and Arbitrage to explain the success of Lenovo/Motorola in India.Make a strategy recommendation for how Lenovo/Motorola should approach the Chinese market in the future.In the first half of the report you introduce ideas, then in the second half of the report you will discuss and evaluate these ideas to identify what is most important.
Lenovo/Motorola targets the regional or national markets while identifying the differences in accordance with their perceptions, attitudes, buying behavior and they do so to attain the maximum benefit so that more profits can be attained. Generally, company deploys the diverse part of the supply chain within different places. The main and most critical reason is that the worldwide labor "arbitrage" that sent organizations surging abroad. Compensation in China and India have been going up by 10-20% a year for as far back as decade, while assembling pay in America and Europe has scarcely moved. Different nations, including Vietnam, Indonesia and the Philippines, still offer low wages, yet not China's scale, proficiency and supply chains (Han, 2011). There are still huge differences between wages in diverse parts of the world, yet different components, for example, transport costs progressively counterbalance them. In accordance with the manufacturing, the labor cost arbitrage in administrations leaves the firms with all the downsides of separation and ever less cost funds to compensate for them. There has been a widespread complexity with outsourcing information technology and the standard back-office errands that used to be carried out in-house. A few activities that used to be viewed as fringe to an organization's benefits, for example, the management of the data, are presently seen as crucial, so they are less inclined to be endowed to an outsider supplier a large number of miles away.
While making their way to the Chinese market, Lenovo should focus on the core business of personal computers and target the new opportunities that exist within the tablets and smartphones. This would be termed as a protect and attack strategy. Lenovo ought to attack diverse markets around the globe. Those incorporate developing markets where the organization has made critical traction in the course of recent years, for example, little and moderate sized business (SMB) customers which Lenovo characterizes as organizations with 1,000 representatives or less, got driven through a channel strategy. It likewise incorporates entering the retail channel, and keeping on growing it’s impart and vicinity in all the topographies
They ought to concentrate on four things: first is appropriate and great performance. The second is innovative items and third is effectiveness of their supply chain. Lastly the differentiated worldwide leadership team comprehends the needs of distinctive geologies. On top of that, in the most recent four years they have had a technique of 'protect and attack'. They secure their strength in their core business, that is, China business and worldwide enterprise business. Also they target and attack new markets with brand new products — like developing market.
This is all due to the fact that in China, Lenovo can acquire the best US technology and make use of the innovative technology afterwards to execute the performance in an innovative manner (Sun, 2013). Overall, Lenovo has a widely accepted brand image and according to the author, it just need to focus on the protect and attack strategy while approaching the Chinese Market in the future because this is their core strategy for expansion and this can let them grow effectively and innovatively.
Han, G., 2011. Lenovo's Brand Management Strategy – Promotion and Protection. China Intellectual Property, 21(2), pp.13-25.
Sun, Z., 2013. Capability Accumulation and the Growth Path of Lenovo. Journal of International Business, 25(4), pp.15-28.
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