Group 1 Ibm
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The document discusses Lenovo's acquisition of IBM's PC division and its challenges using strategic models like the BCG matrix. It categorizes business units as 'stars,' 'problem children,' 'cash cows,' or 'dogs' based on market attractiveness and competitive position. Key factors influencing Lenovo's success include global market share, distribution channels, and competition in the technology sector.
Group 1 Ibm
- 2. The BCG (Boston Matrix)Problem childStarsDogsCash cowsLenovo China 2005, a successful star IBM PC Division, from star to problem child/dog.
- 3. The General Electric Market Attractiveness–Competitive Position ModelZone 1Build= “star”HighZone 3Hold/build/harvest= “problem children”MediumMarket attractiveness:Market size
- 5. Profit potentialZone 2Hold= “Cash Cow”Zone 4HarvestLowZone 5Divest= “dog”HighLowMediumCompetitive strength:Market share, potential to develop differential or cost advantage,Reputation.
- 6. Why was buying the IBM PC division an attractive proposition for Lenovo?Use of logo
- 10. Opportunity to challengeWhat are the challenges facing Lenovo in trying to make the acquisition work?The Compaq-HP dilemma
- 13. IT recessionDo you think Lenovo will be successful?2010