Businessmodel of Lenovo

Customer Segments

Lenovo targets the mass market of consumer electronics. With a wide variety of products, including laptops, tablets and PCs of all different costs and specifications including:

• Workstations targeted at businesses and educational establishments.
• Affordable tablets aimed for casual and recreational users.
• Laptops aimed for both work use and leisure.
• High-powered gaming PCs. Each of these categories features a range of products at different expenses and specifications. No potential customer is excluded.

Value Proposition

Innovation remains Lenovo’s core tenet. With user-friendly hardware and groundbreaking technology, Lenovo strives to change the way we think about technology. For example, Lenovo has created innovative hinges on its laptops as well as critically acclaimed keyboards, that although new technology, remains reliable and durable. Lenovo machines utilize advanced cooling systems and efficient technology to reduce strain on internal systems and increase longevity.

Personal computers, smartphones and tablets do not come as a one-size-fits-all package, and so Lenovo focuses on customization as well as featuring a wide product range to capture the mass market.

Channels

Lenovo utilizes two main sales channels. Consumers can buy online from their website directly, or from an independent dealer. Independent dealers specialize on a variety of products, depending on the user’s intended function, for example home office and business users can buy from certain resellers, whilst home and student users may wish to buy from others.

Customer Relationships

Lenovo centers a strong focus on customer relationships, featuring warranties and extended support. Lenovo offers sales support to businesses and schools to ensure the correct product reaches the intended customer.

Personal Assistance is offered prior to purchase, though self-service tools are available for customers via Lenovo’s website. Technical support is also available.

Key Activities

Lenovo is a global company that attempts to push technology forward, updating and innovating products.

It provides technical support to its consumers.

Lenovo relies on large scale manufacturing facilities based in China, the U.S, Brazil, Germany and Mexico. Distribution is then provided by both Lenovo directly and various distribution companies.

Key Partners

Lenovo has a wide supply chain, utilizing numerous resellers and distributors across the globe.

National Resellers include: CCB, CDW-G, CompuCom, Insight, PC Connection, PCM, SHI, Softchoice, Tiger Direct, Zones. Lenovo also utilize many online and local retailers including Costco, BestBuy and Amazon.com.

Key Resources

Lenovo’s main resource is its research and development team primarily located in Beijing, China and in North Carolina, USA. Lenovo utilizes marketing teams and has manufacturers based across the globe.

Cost Structure

Lenovo has a cost-driven structure, by manufacturing products in-house costs can be kept lower. Products are also manufactured across the world, where they are intended to be sold to keep transportation costs down. The biggest cost drivers are in research & development, and manufacturing.

Revenue Streams

The primary revenue stream for Lenovo is the price it charges for physical products.