Lenovo: Being on top in a declining industry

Abstract

For the first time since the 2008 financial crisis, Lenovo, the world’s largest PC maker, had not only failed to increase its revenues and profits but also a net loss. Lenovo’s market share was still growing, but the PC market itself was shrinking by about five percent annually. Lenovo hoped to broaden its leadership toward smaller computing devices, a market that had seen more growth. It purchased Motorola Mobility in 2014 and continued to invest in its smartphone business through branding and innovation. Yet, in 2016, this business did not make a profit and only grew in some geographical markets. Lenovo faced fierce competition from giants such as Apple and Samsung and from Chinese manufacturers that had quickly grown in market share. How could Lenovo reignite growth and sustain its position as a global industry leader?.