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Lenovo

Essay by   •  June 23, 2011  •  Case Study  •  703 Words (3 Pages)  •  1,220 Views

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In 2004, the computer investment has reached 42,372 billion euros, a 3 % growth compared to 2003. 13 % of these investments IT should were generated by all the state, a regional and local authority, so that is about 5,6 billion euros.

The weight of the spending of the IT of the public sector is situated between that of industrial companies (26 % for a volume of investment which reached 10,544 billion euros in 2004), and that of banks (12,5 % for a volume of investment which reached 5,465 billion euros in 2004).

The sales of computers in France have increased by 10,7 % over one year, to reach a little more than two million units for the third quarter of 2006. This resumption, more important than what the forecasts stated, would notably be due to the craze of the French consumers for laptops, which present henceforth a ratio performance / price similar to that of desk machines.

The six main manufacturers of the market share 67,7 % of sales . 30,6 % of market shares for Hewlett Packard (HP), 22,2 % for Acer, 16,7 % for NEC, 15,7 % for Dell , 7,4 % for Toshiba and 8% for Lenovo.

For the first time, Acer seizes the second place on the French market, in front of NEC. The Taiwanese remains besides the uncontested leader of the market of mobiles with approximately 20 % of market shares. On the laptop side, sales progressed of 30,8 % over one year in the third quarter.

The general public is, as for several quarters, the main engine of the growth of the market of PC, with a 17,9 % growth on the quarter. On the professionals side, sales show a growth of only 4,6 %.

Although the Chinese market keeps on growing, it remains quite low. It equals hardly the French market even if grows faster than it. However, in a long term, only the global actors that have managed to break into all the geographic places (America, Asia and Europe) will remain profitable and competitive. To succeed on this market, newcomers have to have a big size and the strength to compete in a short and in a long term.

The computer market has always remained very competitive, even more concerning the laptop market because it grows very faster than the desk computer one.

Concerning Lenovo, thanks to IBM, it just buys notoriety and this is the only thing it aims on the French market. The company already has factories then the purchase of IBM enables it to increase its scales economies. This detail matters a lot

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