Abstract

This case provides students an opportunity to learn how to assess the competitiveness and profitability of the global computer industry through the SWOT analysis framework. By analyzing the effectiveness of Lenovo’s business growth strategy, enabled by a dual supply chain approach for achieving both responsive and efficient objectives, students will also understand how Chinese companies can successfully transform themselves from operating merely as an OEM to OBM with a recognized global brand.

Learning Objectives

After analyzing the case, students will be able to:

·         Understand the implications of the smiling curve for a company to develop capabilities both upstream (design and development) and downstream (marketing and brand) in the supply chain

·         Apply the SWOT analysis to assess the competitiveness and profitability of the computer industry

·         Develop a competitive strategy that leverages the global supply chain opportunities and manufacturing excellence to counter the shortening product life cycle of computer products

·         Discuss the transformation of many Chinese manufacturing companies from OEM to ODM and eventually OBM in order to create a global brand

·         Discuss how Lenovo has successfully avoided the many geopolitical issues and sanctions imposed on many Chinese technology companies