A

PROJECT REPORT

ON

“COMPARATIVE STUDY BETWEEN

DELL AND LENOVO ON THE BASIS OF 4P’s ”

SUBMITTED FOR THE PARTIAL FULLFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION
TO

INVERTIS UNIVERSITY, BAREILLY(UP)

SESSION 2016-17
Supervisor: Submitted By:
Mr. Manmohan Bansal Anmol Agarwal
Assistant Professor 1410101012
BBA VI –A

1
 CERTIFICATE

TO WHOM IT MAY CONCERN

This is to certify that Mr. Anmol Agarwal student of BBA-VI Sem in our institute has
successfully completed his project work entitled “ Comparative Study Between Dell And
Lenovo on the basis of 4 p’s ” for the partial fulfillment of the degree of Bachelor of Business
Administration for the session 2016-17.

Dr, Manish Gupta Dr. Dheeraj Gandhi Mr. Manmohan Bansal

(Dean Management) (HOD, BBA & B.Com) (Assistant Professor)

2
 PREFACE

It gives us immense pleasure to work on the project as it is entirely creative. This does not come
all of a sudden, but it comes by result of discussion, consultation &contemplation. Problem
unsolved here can never be satisfactory eliminated later it is therefore a slow process.
Moreover practical training is an important part of management courses. The theoretical studies
are not sufficient to get into the corporate world only practical knowledge can help us to
understand the complexities of large scale organization.
To develop healthy managerial & administrative skill in potential managers. It is necessary that
theoretical knowledge must be supplemented with exposure to the real environment. Actually, it
is life for, a management itself is realized.
My topic of project is “A study on the Comparative study between the Dell and Lenovo on
the basis of 4p’s”

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 AKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of any task would be incomplete
without the mention of the people who made it possible, whose constant guidance&
encouragement crowned my efforts with success.
I would like to show my gratitude towards my guide Mr. Manmohan Bansal for guiding and
making me capable enough to work on this report.
I would also like to show my gratitude towards Dr. Dheeraj Gandhi (HOD, BBA Invertis
University) for this valuable advice, knowledge & encouragement towards my endeavor in
making this project successful along with my faculty members I would like to pay special thanks
to MS. DARSHNEEL GROVER for helping me in my Project.
And last, gratitude towards the people for their time and direct or indirect contribution which
helped in completing my project.

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 INDEX

Serial Topics Page No

No.
1. Objectives Of the Study 6
2. Research Methodology 7-9
3. Introduction
10-35
4. Literature Review 35-39
5. Comparison Analysis between Dell & Lenovo 40
6. Market Share 41
7. Findings 42
8. Conclusion 43
9. Limitations 44
10. Recommendations 45
11. Bibliography 46

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 OBJECTIVES

 To study the marketing strategy adopted by Dell and Lenovo.

 To study the SWOT Analysis of Dell and Lenovo.

 To study the comparison between the features of Dell and Lenovo.

6
 Research Methodology:

Research Methodology is a way to find out the result of a given problem on a specific matter or
problem that is also referred as research problem. In Methodology, researcher uses different
criteria for solving/searching the given research problem. Different sources use different type of
methods for solving the problem. If we think about the word “Methodology”, it is the way of
searching or solving the research problem.

Research Design:

Descriptive Research
Descriptive research does not fit neatly into the definition of either quantitative or qualitative
research methodologies, but instead it can utilize elements of both, often within the same study.
The term descriptive research refers to the type of research question, design, and data analysis
that will be applied to a given topic. Descriptive statistics tell what is, while inferential statistics
try to determine cause and effect.
Descriptive research can be either quantitative or qualitative. It can involve collections of
quantitative information that can be tabulated along a continuum in numerical form, such as
scores on a test or the number of times a person chooses to use a-certain feature of a multimedia
program, or it can describe categories of information such as gender or patterns of interaction
when using technology in a group situation. Descriptive research involves gathering data that
describe events and then organizes, tabulates, depicts, and describes the data collection (Glass &
Hopkins, 1984). It often uses visual aids such as graphs and charts to aid the reader in
understanding the data distribution.

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Data Collection Technique:

Secondary data
Secondary data is the data that have been already collected by and readily available from other
sources. Such data are cheaper and more quickly obtainable than the primary data and also may
be available when primary data cannot be obtained at all.

Advantages of Secondary data:

1. It is economical. It saves efforts and expenses.

2. It is time saving.

3. It helps to make primary data collection more specific since with the help of secondary data,
we are able to make out what are the gaps and deficiencies and what additional information
needs to be collected.

4. It helps to improve the understanding of the problem.

5. It provides a basis for comparison for the data that is collected by the researcher.

Source:
www.dell.co.in
www.lenovo.com

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Graphical Representation:
A graphical representation is a visual display of data and statistical results. It is often more
effective than presenting data in tabular form. There are many different types of graphical
representation and which is used depends on the nature of the data and the type of statistical
results. An appropriate graphical representation of category frequencies is a pie chart, where
each slice represent a different category and slice angles are proportional to the frequencies of
the categories. Another graphical method used for category frequencies is a bar chart, where each
bar represents a different category and the heights of the bars are proportional to the frequencies
of the categories. Suitable graphical representation of frequency distribution of discrete
quantitative data is also a bar chart, while for frequency distribution of continuous quantitative
data convenient graphs are a histogram, frequency polygon, and/or stem-and-leaf plot.

Tabular representation :
A table is a means of arranging data in rows and columns. The use of tables is pervasive
throughout all communication, research and data analysis. Tables appear in print media,
handwritten notes, computer software, architectural ornamentation, traffic signs and many other
places.

Percentage analysis
Percentage analysis consists of reducing a series of related amounts to a series of percentages of
a given base. All items in an income statement are frequently expressed as a percentage of sales
or sometimes as a percentage of cost of goods sold. A balance sheet may be analyzed on the
basis of total assets. This analysis facilitates comparison and is helpful in evaluating the relative
size of items or the relative change in items. A conversion of absolute dollar amounts to
percentages may also facilitate comparison between companies of different size.

COMPANY PROFILE:

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 DELL:-

Introduction:-

Dell Inc. is an American privately owned multinational computer Technology Company based

in Round Rock, Texas, and United States that develops, sells, repairs, and supports computers
and related products and services. Bearing the name of its founder, Michael Dell, the company is
one of the largest technological corporations in the world, employing more than 103,300 people
worldwide.

Dell sells personal computers (PCs), servers, data storage devices, network switches, software,

computer peripherals, HDTVs, cameras, printers, MP3 players, and electronics built by other
manufacturers. The company is well known for its innovations in supply chain
management and electronic commerce, particularly its direct-sales model and its "build-to-order"
or "configure to order" approach to manufacturing—delivering individual PCs configured to
customer specifications. Dell was a pure hardware vendor for much of its existence, but with the
acquisition in 2009 of Perot Systems, Dell entered the market for IT services. The company has
since made additional acquisitions in storage and networking systems, with the aim of expanding
their portfolio from offering computers only to delivering complete solutions for enterprise
customers.

Dell Computer was founded as PC’s limited in 1984 by University student Michael Dell. Selling
assembled computers from his dormitory room, Michael abandoned the university during the
planning stage of his first in-house computer design in 1985. The company was so successful
that within two years PC’s limited had distributed offices in Europe, and changed its name to
Dell Computer Corporation. By 1991, seven years after selling its first computer, Dell Computer
Corporation was listed in Fortune 500. With much experience in mail order telephone sales, Dell
was one of the first companies to offer computers for mail order via the Internet. The Dell
Coupon program made many Internet models cheaper than other brands, and continues to be
popular to this day.

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 HISTORY

Dell Inc.'s (Dell or "the company") history date backs to 1984 when Michael Dell founded Dell
Computer Corporation to sell personal computer (PC) systems directly to customers. In 1985, the
company introduced the Turbo, its first PC. In 1988, Dell made its initial public offering. In the
following year, it introduced its first notebook PC. In 1990, the company opened a
manufacturing center in Limerick, Ireland to serve the European, Middle Eastern, and African
markets. In 1993, Dell expanded its global presence with new subsidiaries in Australia and
Japan. In 1996, Asia Pacific manufacturing center was started in Malaysia and it started selling
PCs through its website. In the following year, the company introduced its workstation systems.

In 1998, Dell expanded its manufacturing facilities in the Americas and Europe. In the following
year, the company opened a facility in Nashville, Tennessee and a manufacturing facility in
Eldorado do Sul, Brazil to serve its customers in Latin America. In 1999, Dell acquired
CovergeNet, a storage hardware and software developer.

In 2000, the company launched PowerApp appliance servers. In the following year, the company
launched Blade server, Aximx5 handheld and 3100MP projector. In 2003, the company's name
was changed from Dell Computer Corporation to Dell Inc. In the same year Dell opened its
second contact center in Hyderabad, India, and a Dell Enterprise Command Center in Limerick,
Ireland.
In 2005, the company opened its third manufacturing location in the US at Winston-Salem,
North Carolina. In the following year, the company expanded its operations in India, by
establishing its fourth Indian customer contact center in Gurgaon, and first manufacturing facility
in Tamil Nadu, India.

In 2006, Dell entered the high-end PC gaming market with the acquisition of Alienware, a
gaming PC manufacturer.

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In 2007, Dell established a new global research and development center in Bangalore, India, for
developing next generation network servers, data-storage systems and software products. In the
same year, the company expanded its operations in Brazil by building a new plant at
Hortolandia, Sao Paulo. Subsequently, Dell partnered with Gome, China's largest consumer
electronics retailer, for retail sales in China. During the same year, the company expanded its
retail presence by entering into retail agreements with DSG International, one of the major
consumer electronics retailers in Europe; and Tesco, an international retailer with operations in
Europe and Asia. Dell acquired several companies, including SilverBack Technologies, a service
delivery platform provider; ASAP Software, a provider of software solutions and licensing
services; ZING Systems, a consumer technology and services company; EqualLogic, a provider
of high-performance iSCSI storage area network (SAN) solutions; and Everdream, a provider of
Software-as-a-Service (SaaS) solutions for remote-service management.

In 2008, Dell established its second European manufacturing plant in Poland. In the same year,
Dell acquired Networked Storage, a consultancy firm specialized in IT data storage solutions.
Subsequently, Dell expanded its retail presence in China by adding Suning as retail partner, by
extending relationship with Gome and by launching its products at Hontu, Wuxing, Meicheng,
Heng Chang and Heyong stores.

In 2010, the company acquired KACE, a systems management appliance company; and Scalent,
a private company that provides software for data center infrastructure; and Ocarina Networks,
an online storage optimization solution provider, and its compression and deduplication
technology.

In January 2014, Framestore, a British visual effects company, partnered with Dell to expand its
business presence in North America.
Dell won a five-year services contract with Lufthansa, the largest airline in Europe, whereby Dell
will provide maintenance and support for the front-end of Lufthansa's ticketing and reservations
passenger booking system, in February 2014.

12
In February 2014, Dell enhanced collaboration with Ingram Micro to expand its channel partner
program for delivering electronic medical records (EMR) solutions and services to the physician
market . Dell formed a division focused on bringing together end-to-end IoT solutions that span
hardware, software and services, in May 2015. In the following month, Dell launched Premium
Support, a new support service for consumer PCs and tablets that improves the customer
experience through simplified, hassle free support.

KEY EMPLOYEES

Name Job Title Board

Michael S Dell Chairman of the Board, Chief Executive Board
Executive Officer
Jeffrey W. Clarke Vice Chairman, Operations, Senior Management
and President, Client Solutions
Marius A. Haas Chief Commercial Officer and Senior Management
President, Enterprise Solutions
Steve H Price Senior Vice President, Human Senior Management
Resources
Karen H. Quintos Senior Vice President and Senior Management
Chief Marketing officer
Richard J. Rothberg Senior Vice President and Senior Management
General Counsel
Thomas W. Sweet Senior Vice President and Senior Management
Chief Financial Officer
John A. Swainson President, Software Senior Management

Suresh C. Vaswani President, Services Senior Management

Cheryl Cook Vice President, Global Senior Management

Channels and Alliances

MAJOR PRODUCTS AND SERVICES

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Dell Inc. (Dell or "the company") is an information technology (IT) company offering a broad
range of products, including desktop personal computers (PCs), servers, networking products,
storage, mobility products, software and security. It also provides a range of services including
consulting and product-related support services.The company's key products and services include
the following:

Enterprise Solutions Group (ESG):

Servers
Networking products
Storage products
ESG related peripherals

Client Solutions:
Notebooks
Desktops
Tablets
Thin clients
Third party software
EUC related peripherals

Dell Software Group:

Systems management software
Security solutions
Information management software

Dell Services:
IT and business services
Support and deployment services
Infrastructure services
Cloud services
Security services
Applications and business process services

SWOT Analysis of Dell:

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 Strenghts Weaknesses
 Comprehensive portfolio of products  Relatively weaker presence in
and services smartphones market
 Established market presence
 Presence across diversified end markets
and geographies

Opportunities Threats
 Positive outlook for cloud computing  Negative trends in the PC market could
market
impact sales
 Data center networking market represents
growth opportunity  Intense competition could dent market
 Strong growth in big data market
share

Strengths

 Comprehensive portfolio of products and services

Dell offers a broad range of products and services. The company's products and service portfolio
can be broadly categorized into: client, servers, networking, storage, services, software, and
third-party software and peripherals.The company offers notebooks, desktop PCs, tablets, third-
party software and peripherals. The company also offers cloud-based mobile computing
solutions and includes a portfolio of Windows-8 touch-enabled tablets and convertibles.
According to industry estimates, Dell was the third largest player in the worldwide PC market
with shipments of 9.2 million units in the fourth quarter of 2014. Dell’s product portfolio also
includes servers, networking, and storage. Dell also offers a range of networking products for the
enterprise IT environments. The company offers a comprehensive portfolio of advanced storage
solutions, including storage area networks (SAN), network-attached storage (NAS), direct-
attached storage, and various backup systems.

 Established market presence

Dell has established itself as a strong player with significant presence across several markets.

15
 According to the company, it is a strong player in the security market. The company manages
110 digital identities, analyzes 76 billion cyber events, blocks 1.8 billion malware downloads,
and protects $14 trillion in assets. Dell also has market leadership in healthcare and it provides
infrastructure to store approximately 131 million clinical studies and counting. In addition, it
powers a chain of hospitals which serves approximately 90 million patients; and serves more
than 100 hospitals in the US to secure, store and analyze electronic medical records (EMRs).
Moreover, the company serves 10 million small businesses globally, enabling them to seize new
opportunities. The company also serves seven out of 10 pharmaceutical companies through its
Dell Specific offering. Dell is also a strategic technology supplier to top 10 global airlines.
Furthermore, the company serves 98% of Fortune 500 companies and has strong partner network
comprising over 165,000 channel partners.

Established market presence provides the company a formidable position. It also provides strong
brand recognition enabling Dell to add new clients from existing and new geographies.

 Presence across diversified end markets and geographies

Dell has proactively expanded and diversified its operations and has transformed itself since its
inception. The company has focused on positioning itself as a company offering IT products and
solutions from originally being a PC brand. Accordingly, it has made several investments and
gained significant market in enterprise solutions and in offering IT services. These services have
higher margins and are also significant growth areas. Dell has a diversified customer base as
well, owing to the expansion of its product and service portfolio. Similarly, Dell has also
diversified geographically. Diversified end markets and geographic reach spreads the business
risk of the company. Furthermore, they offer access to a wider customer base and enable
continued inflows resulting in a strong revenue position for the company.

Weaknesses

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 Relatively weaker presence in smartphones market
The company has relatively weaker presence in the robustly growing smartphone market.
Although, Dell forayed into the smartphones market in 2007, that business did not turn out well.
As a result, the company disbanded its smartphones business unit in 2010. Comparatively, Dell's
key competitor, Lenovo has a strong smartphones business. Lenovo is the second largest
smartphone manufacturer in China after Samsung. According to industry estimates, its
worldwide smartphone shipments in the fourth quarter of 2014 were recorded as 18.7 million.
Globally, Lenovo is ranked fourth largest manufacturer of smartphones. It further strengthened
its smartphones market presence through the acquisition of Motorola Mobility form Google.
Similarly, HP, the company's another competitor, re-entered the smartphones market with the
launch of two new large-format smartphones in India, in 2014. While Dell's competitors are
focused on manufacturing and selling smartphones, which are in huge demand, the company is
only restricted to reselling other vendors' smartphones.
Relatively weaker presence in the smartphones market places Dell in a disadvantageous position,
as its competitors are well positioned to benefit from the robust smartphones market.

Opportunities
 Positive outlook for cloud computing market
The worldwide demand for cloud computing services is expected to record strong growth in the
coming years. Cloud computing is a computing infrastructure model, which enables delivery of
SaaS. This reduces the upfront royalty or licensing payments, investment in hardware and other
operating expenses. Several organizations around the world have been realizing the potential
benefits of cloud and are adopting these disruptive technologies to gain business advantage.
According to industry estimates, the public cloud services' spending is forecast to grow at a
CAGR of 22.8% during 2014-18 and reach more than $127 billion in 2018. In 2018, public IT
cloud services are estimated to account for more than half of worldwide software, server, and
storage spending growth. Industry estimates also suggest that global SaaS market is expected to
be major contributor to the cloud computing market.

Positive outlook of the cloud computing services and the company's significant presence in this

17
 market will provide incremental revenues and enhanced customer base to the company.

 Data center networking market represents growth opportunity

According to industry estimates, data center networking market is expected to grow robustly in
the coming years. The data center networking market is expected to reach $21.9 billion by 2018.
The market is expected to be primarily driven by increasing adoption of next-generation Ethernet
switches, SAN products, and network security tools for virtualized data centers. Dell is well
positioned to benefit from the growing data center networking market.The company offers a
range of networking products including fixed port Ethernet switches, wireless networking,
chassis switches, PowerEdge M series blade interconnects, server network adapters, network
management and fibre channel SAN switches, among others. The company with a broad and
strong data center networking product portfolio will benefit from rapidly growing end market,
thereby increasing its revenues and market share.

 Strong growth in big data market

Big data, which is a primary contributor to the pace of overall data growth, refers to the large
repositories of corporate and external data, including unstructured information created by new
applications including medical, entertainment, energy and geophysical, social media and other
web repositories. It also refers to the new analytics and other technologies that are available to
help people do things with the significant amount of enterprise and external data. According to
industry estimates, the big data market is estimated to grow at a compound annual growth rate
(CAGR) of 26.4% to reach $41.5 billion in 2018.

Industry estimates also suggest that the continued growth of data in the digital universe would
create a huge challenge for IT departments who must store and manage information. Growing
unstructured data rapidly within organizations is not suitable to be stored, managed and analyzed
by traditional IT systems. To address this, IT departments are expected to acquire new
technology, build new applications and serve insightful information. This new technology must
be designed to operate at petabyte scale - employing "scale-out" architecture.
Threats

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 Negative trends in the PC market could impact sales
The PC market has been struggling since last few years. Slowing demand in emerging markets
and cannibalization by tablets and smartphones has led to a downfall in PC sales. According to
industry estimates, the global PC shipments volume is expected to decline from 295.9 million in
2014 to 291.7 million in 2018, representing a compound annual rate of change (CARC) of 1%
during 2014-18. Similarly, the PC shipments in mature markets are expected to decline at a
CARC of 2% and reach a shipment volume of 130 million in 2018. Further, the company’s
shipments decreased by 6.3% reaching 9.2 million units in the first quarter of 2015. Despite
efforts to diversify into other business segments, Dell is significantly exposed to the PC market.
The adverse outlook of the global PC market is expected to adversely impact the company's
topline.

 Intense competition could dent market share

The company faces intense competition in all areas of its business, including from both branded
and generic competitors. Dell competes based on its ability to offer competitive, scalable, and
integrated solutions with the most current and desired product and services features. It also
competes in terms of price, quality, brand, technology, reputation, distribution and range of
products, among other factors. Dell faces stiff competition in enterprise PC and server markets
from Acer, HP, Lenovo, IBM and Toshiba, among others. In some regions, the company faces
competition from local companies and from generically-branded or white box manufacturers. In
the consumer market, Dell faces stiff competition from HP, Acer, Apple, Sony, Lenovo and
Asustek. Furthermore, in the European and Asian netbooks markets the company faces intense
competition from Asustek.Thus, fierce competition may affect the company's industry unit share
position, revenue, and profitability in the coming years.

DELL MARKETING STRATEGIES

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 Dell is a diversified information technology provider and partners directly to customers cover a
wide range of global products and services. Dell in “Fortune” magazine “America the most
appreciated companies” rankings, and ranked No. 1 in “Global most appreciated companies”
rankings, ranked third. Dell commitment to provide our customers design, build and deliver
innovative customized based systems in order to provide customers with outstanding value.

Spanning over 20 years, the company has always been associated with designing,
manufacturing and customizing products and services to satisfy a diversified range of
customers including individual customers to corporate and retailing businesses. The company’s
philosophy to deal with customers one-on-one has become a management model for other
companies. Having gained the market leadership position in computer products and services,
Dell’s team has always been careful in sustaining its marketing strategy of providing standard-
based computing solutions.

 Product:
 Dell’s unique approach to manufacturing separates the different processes so that Dell is not
reliant on singular production or supplier’s chain for equipment production. Though there is
no segregation of the different products and services but nevertheless in separating the
components enabled it to target the customers based on the regions in which the products are
manufactured. By assigning each regionalized production center particular component for
production not only has diversified the risk of concentration of labor and production costs but
also depending on particular infrastructure.

 Price:
Dell’s product pricing reflect the affordability of the local consumers. For example basing
plants in Xiamen, China Dell has been able to provide products and services at the local
prices without incurring additional costs to price. Price reasonability and the availability of
support, after sales services and parts have alleviated Dell’s position from others.

 Place: 

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 Dell has been able to affect the location strategy aspect of its marketing campaign. As Dell’s
products are always available at the nearest dealer’s customers develop trust for the “local
Dell” thereby achieving the objective of gaining their trust in Dell products and services, and
forming a large and diversified consumer base.

 Promotion:
Dell in the past have not concentrated on extensive marketing campaigns but this
revolutionized in 1999 when Dell changed its tactics by engaging inextensive marketing
campaigns. The “Be Direct” attitude has changed the way consumer view Dell as the local
producers.

Business-Level Strategy

C u s t o m e r   e x p e c t a t i o n s   i n   t h e   i n d u s t r y   h a v e   c r e a t e d   a   g r o w i n g demand for
low-priced, differentiated products. As a result, Dell n e e d s t o b e a b l e t o p e r f o r m
p r i m a r y a n d s u p p o r t a c t i v i t i e s t h a t simultaneously yield low costs and
differentiated features, or an
I n t e g r a t e d   c o s t L e a d e r s h i p / d i f f e r e n t i a t i o n s t r a t e g y . T h e objective of
using this strategy is to efficiently produce products with attributes that boost product
quality or performance.
Successful use of an integrated cost leadership/differentiation
strategy has the added benefit of building skills that can help Dell adapt more
quickly to new technologies and rapid changes in the external
environment.S i m u l t a n e o u s l y   c o n c e n t r a t i n g   o n   d e v e l o p i n g   t w o s o u r c e s  
o f   competitive advantage (cost and differentiation)
I n c r e a s e s   t h e number of primary and support activities in which the company must
become competent, which contributes to greater flexibility.
Flexible manufacturing systems, information networks, and total
q u a l i t y   m a n a g e m e n t   s y s t e m s   c a n   a l s o   y i e l d   a   m o r e   f l e x i b l e organization
. Each type of initiative should be considered by Dell as it tries to balance the objectives of
continuous cost reductions and continuous product enhancements.

T o t a l   q u a l i t y   m a n a g em e n t   ( T Q M )

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I t i s   a n o t h e r   m a n a g e r i a l innovation that emphasizes an organization’s total
commitment to the customer and to continuous improvement of every p r o c e s s through the use
of data-driven, problem-solving approaches based on empowerment of employee groups and
teams. The development a n d u s e o f T Q M s y s t e m s a t D e l l w o u l d a l i g n a c t i o n s
with the company's strategic needs and would concurrently serve to
( 1 ) Increase customer satisfaction
(2) Cut costs
(3) Reduce the amount of time required to introduce innovative products to the
market place.
All of these objectives have been identified as critical factors that will influence Dell's future
success.
TQM systems result in the enhancement of innovative abilities, the ability to exceed
customers’ quality expectations (differentiating the company from its competitors), and
the elimination of process inefficiencies to cut costs (allowing Dell to offer better performing
features at the relatively low prices expected by its customers).
Thus, an effective TQM system will help Dell develop theflexibilit
y needed to identify opportunities to implement its
Integrated cost leadership/differentiation strategy.

Corporate-Level Strategy

A corporate-level strategy specifies actions a firm takes to gain a

c o m p e t i t i v e   a d v a n t a g e   b y   s e l e c t i n g   a n d   m a n a g i n g   a   g r o u p   o f   different
businesses competing in different product markets.C o r p o r a t e -
l e v e l   s t r a t e g i e s   h e l p   c o m p a n i e s   s e l e c t   n e w   s t r a t e g i c  positions to increase the
firm’s value. They are also a means to grow revenues and profits.
By 2006, Dell has already diversified from a purely desktop
PC  p r o v i d e r   t o   o p e r a t i n g   i n   t h e   f o l l o w i n g   a d d i ti o n a l   p r o d u c t c
ategories: mobility, server, storage, printer, enhanced services, software, and consumer
electronics.

22
More than thirty percent of its revenue is generated outside of its dominant business.
Because of t h i s   r a t i o   a n d   b e c a u s e   t h e r e   a r e   e x i s t i n g   l i n k s  

B e t w e e n   i t s diversified businesses, a related constrained

diversification.

Head Office
Dell Inc.
One Dell Way
Round Rock
Texas 78682
USA
P:1 512 728 7800
http://www.dell.com/

23
 LENOVO

Lenovo Group Limited (Lenovo or "the company") is a provider of consumer, commercial, and
enterprise technology. The company’s portfolio of product and services covers personal
computers (PCs), servers, workstations, storage, smart televisions (TVs), and a family of mobile
products, including tablets, smartphones and applications.The company operates across Asia
Pacific, Europe and Americas. Lenovo is headquartered in Quarry Bay, Hong Kong and
employed more than 60,000 people as of March 31, 2015.

The company recorded revenues of $46,295.6 million during the financial year ended March
2015 (FY2015), an increase of 19.6% over FY2014. The operating profit of the company was
$1,108.5 million in FY2015, an increase of 5.4% over FY2014. The net profit of the company
was $828.7 million in FY2015, an increase of 1.4% over FY2014.

Lenovo Group Ltd. is a Chinese multinational computer technology company with headquarters

in Beijing, China, and Morrisville, North Carolina, United States. Lenovo was founded in Beijing in
1984 as Legend and was incorporated in Hong Kong in 1988. Lenovo acquired IBM's personal
computer business in 2005 and agreed to acquire its Intel-based server business in 2014. Lenovo
entered the smartphone market in 2012 and as of 2014 is the largest vendor of smartphones in
Mainland China. In January 2014, Lenovo agreed to acquire the mobile phone handset
maker Motorola Mobility from Google, and in October 2014 the deal was finalized.

Lenovo has operations in more than 60 countries and sells its products in around 160 countries.
Lenovo's principal facilities are in Beijing, Morrisville and Singapore, with research centers in
those locations, as well as Shanghai, Shenzhen, Xiamen, and Chengdu in China, and Yamato in
Kanagawa Prefecture, Japan. It operates a joint venture with EMC, Lenovo EMC, which
sells network-attached storage solutions. It also has a joint venture with NEC, Lenovo NEC
Holdings, which produces personal computers for the Japanese market.

24
"Lenovo" is a portmanteau of "Le-" (from Legend) and "novo", Latin ablative for "new." For the
first 20 years of its existence, the company's English name was "Legend". In 2002,  Yang
Yuanqingdecided to abandon the Legend brand name to expand internationally. "Legend" was
already in use by many businesses worldwide, making it impossible to register in most
jurisdictions. In April 2003, the company publicly announced its new name, "Lenovo," with an
advertising campaign including huge billboards and primetime television ads. Lenovo spent 18
million RMB on an eight-week television advertising campaign.

HISTORY

Lenovo Group Limited (Lenovo or "the company") was incorporated in Hong Kong in 1988 as
Legend. Its parent company, Legend Holdings, was established in China in 1984. In 1988, a
branch of Legend was established in Hong Kong, to distribute foreign brand computer products
and peripherals for Legend (Beijing) and other distributors in China. The company distributed
products manufactured by multinational technology and consulting corporation, IBM, AST
(acquired by Samsung) and multinational information technology corporation, Hewlett-Packard.

In the beginning of the 1990s, Legend began to design, manufacture and distribute its own line of
PC's. Shortly after, Legend (Hong Kong) invested in the Huiyang and Guangdong provinces to
construct the Legend Science and Technology Park. The technology park served as Legend's
manufacturing base. Legend (Hong Kong) was listed on the Hong Kong Stock Exchange in
1994. The company also started to manufacture printed circuit boards during 1994. Legend
successfully spun off its foreign brand distribution arm, Digital China Holdings, in 2001.

In 2002, the company became the first China-based partner of Brocade Communications
Systems, a provider of infrastructure solutions for storage area networks (SANs). Legend and
Brocade entered into a strategic relationship under which Legend would sell and support the
company’s intelligent fabric products.

25
In partnership with semiconductor chip maker, Intel, the company established the Intel-Lenovo
Technology Advancement Center in Beijing, China, in 2003. By the end of 2003, Lenovo sold
50% of its motherboard business to memory module manufacturer, Ramaxel Technology. In
2004, the company changed its name to Lenovo Group. Lenovo moved its executive
headquarters from Hong Kong to Purchase, New York in 2005.

IBM and Lenovo together launched ThinkPad T43, a thin and light notebook computer, with a
new version of Antidote virus protection software, in 2005. In the same year, Lenovo acquired
IBM's PC hardware division. The acquisition made Lenovo one of the biggest PC vendors in the
world. Subsequently, Lenovo established a new innovation center in the state of North Carolina
in partnership with Intel, IBM, LANDesk, Microsoft and Symantec. During the same year,
Verizon Wireless and Lenovo partnered to integrate wireless technology using Verizon Wireless'
Evolution Data Optimized (EV-DO) network in upcoming versions of ThinkPad notebooks,
beginning with the new ThinkPad Z60m.

In 2006, Lenovo introduced the first dual-core ThinkPad notebook PCs, improving productivity
and extending battery life for up to 11 hours. During the same year, Lenovo and Microsoft
signed a global agreement that expanded the strategic cooperation between the two companies.

Lenovo and Avaya collaborated on internet protocol (IP) and unified communications solutions,
in 2007. In the same year, Microsoft and Lenovo entered into a global agreement to pre-load
Windows Live services on Lenovo PCs sold worldwide, including ThinkPad notebooks,
ThinkCentre desktops and Lenovo-branded PCs.

The company entered the worldwide consumer PC market with new 'Idea' brand in 2008.Later in
2008, the company entered into the worldwide server market by launching ThinkServer line
targeting small and medium businesses. Subsequently, Intel, Lenovo and Absolute Software,
jointly introduced hardware-based anti-theft and computer-theft deterrence technology for
notebook computers for businesses.

26
In 2009, Lenovo acquired Switchbox Labs, a start-up focused on developing new consumer
technologies. In the same year, Lenovo and Research In Motion (now known as BlackBerry)
joined forces to work together for better integration between Lenovo ThinkPad laptop computers
and BlackBerry smartphones. Subsequently, Lenovo and Microsoft launched academic personal
computer promotion with the launch of laptop PCs designed specifically for college and
university students, faculty and staff.

In 2011, the company created new mobile internet business group to focus on tablets,
smartphones and smart televisions (TVs). In the same year, the company formed a joint venture
with NEC to create Japan's largest PC group.

In 2013, Lenovo and EMC agreed to create LenovoEMC joint venture to offer network attached
storage solutions to SMBs and distributed enterprise sites. In the same year, the company
acquired CCE, a leading company in Brazil that offers PCs and consumer electronics.

In June 2014, Lenovo introduced ThinkServer RS140, an entry-level single-processor 1U rack

server for SMBs and remote office deployments. In the following month, Lenovo launched New
Business Development (NBD), an internet-centric business platform in China aimed at startups.
Lenovo launched ThinkStation P Series and enhanced its desktop workstations product lineup, in
August 2014.

Lenovo completed its previously announced acquisition of IBM’s x86 server business, in
October 2014. Further in October 2014, Lenovo completed its previously announced acquisition
of Motorola Mobility from Google.

Lenovo introduced three new devices to the smartphone portfolio: the new VIBE Shot and
A7000 smartphones and the Lenovo Pocket Projector, in March 2015. In April 2015, Lenovo
announced the newest addition to the ThinkCentre Tiny business desktop family: the
ThinkCentre Chromebox. Lenovo announced two new SAN offerings, the Lenovo Storage
S2200 and S3200 storage arrays, in May 2015. In July 2015, The Open Gaming Alliance (OGA),

27
a non-profit trade association focused on the games industry, announced Lenovo as the latest
company to become a corporate member.
In September 2015, Lenovo announced its latest portfolio of laptops and desktops specifically
designed for the small and medium business. The portfolio includes the ThinkPad E Series and S
series desktops including elegant all-in-ones.

KEY EMPLOYEES

Name Job Title Board

Yang Yuanqing Chairman and Chief Executive Executive Board
Officer
William O. Grabe Lead Independent Director Non Executive Board
Zhu Linan Director Non Executive Board
Zhao John Huan Director Non Executive Board
Tian Suning Independent Director Non Executive Board
Nicholas C. Allen Independent Director Non Executive Board
Nobuyuki Idei Independent Director Non Executive Board
William Tudor Brown Independent Director Non Executive Board

Ma Xuezheng Independent Director Non Executive Board

Yang Chih-Yuan Jerry Independent Director Non Executive Board

Gianfranco Lanci Corporate President and Chief Senior Management

Operating Officer
Wong Wai Ming Executive Vice President and Senior Management
Chief Financial Officer
Gerry P. Smith Executive Vice President and Senior Management
Chief Operating Officer, PC
and EBG Business Groups
Peter D. Hortensius Senior Vice President and Senior Management
Chief Technology Officer
Zhou Qingtong Senior Vice President and Senior Management
Chief Information Officer

MAJOR PRODUCTS AND SERVICES

28
Lenovo Group Limited (Lenovo or "the company") is a provider of consumer, commercial, and
enterprise technology. The company's key products and services include the following:
Products:
Laptops
Desktops
Tablets
Workstations
Servers
Storage devices
Networking products
Software

Accessories and upgrades:

Audio and video
Batteries and power
Cables and connectors
Carrying cases
Docks and port replicators
Keyboards and mice
Memory
Mobile carts
Monitor accessories
Monitors
Security
Software
Storage
Tablet accessories
Wireless and networking
Network storage accessories
Brands:

29
Lenovo
Essential
ThinkPad
Yoga
Motorola
VIBE
ThinkCentre
ThinkStation

SWOT Analysis of Lenovo

Strengths Weaknesses
 Leading player in the worldwide PC  Significant product recalls could dent
market brand image
 Strong performance across all product
lines
 Exposure to highly growing Chinese
market
 Strong presence in PC+ market
Opportunities Threats
 Growing smartphone and tablet market  Competitive pressure could reduce market
 Positive outlook for cloud computing share
market  Negative trends in PC sales could impact
 Strategic acquisitions to boost topline revenues
Growth  Declining average selling prices may
strain margins

Strengths

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 Leading player in the worldwide PC market
Lenovo is one of the leading players in its core business of PC manufacturing. According to
industry estimates, Lenovo is the largest PC maker in the world with a market share of 20.3% at
the end of the second quarter of 2015. The company’s closest rival HP recorded a market share
of 18.5%, while Dell had a market share of 14.5%. Moreover, Lenovo and Apple were the only
two vendors among the top five worldwide that experienced an increase in PC shipments in the
second quarter of 2015. All the other PC vendors witnessed a decline in PC shipments during
2015. The leading market position imparts significant competitive edge to the company in terms
of scale and recognition, which in turn augers well for its expansion plans.

 Strong performance across all product lines

The company witnessed strong performance across all of its products lines during FY2015.
Lenovo’s continued to outperform the PC market through solid execution of its strategy to reach
record-high market share across all geographic, product and customer segments. During FY2015,
the company’s commercial PC unit shipments increased 3% year-over-year (YoY). Its consumer
PC unit shipments grew 15% YoY, a 17 point premium to the market. Revenues of the
company’s PC business were $33,346 million, representing approximately 72% of the
company’s total revenues, recorded a YoY increase of 5.4%.

 Exposure to highly growing Chinese market

Lenovo's high exposure to China and its presence in other emerging markets is a strong
competitive advantage. The company by virtue of its presence is exposed to the markets that are
witnessing strong growth in the PC market. Better business and macro environments in these
regions helped the company propel itself as a leading company in the world. Lenovo's brand
name, product development and distribution in China will provide an edge over other peers that
created devices in mature markets before selling them in the world's largest PC market. Because
of its established presence in China, the business offers strong base from which the company can
fund the cost of its expansion into other emerging markets, both geographically and product
based. While its peers like HP and Dell are grappling with sluggish PC markets in the developed
world, Lenovo's exposure to China is a key competitive advantage.

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 Strong presence in PC+ market

Lenovo while enjoying the benefits of being a strong player in the PC market has been focusing
on the PC+ markets which are an extension to PC market. These include smartphone, tablets and
Smart TVs among others. Lenovo was able to make significant inroads into the PC+ market and
has become the third largest player within two years of entry. The company’s mobile business
segment, a key component of the company’s PC+ strategy accounted for 19.7% of total revenues
in FY2015. Smartphone sales surged in China, as Lenovo became the second largest player in
the world’s biggest smartphone market.

Weaknesses

 Significant product recalls could dent brand image

The company has conducted a number of product recalls, which could affect its brand image. For
instance, in December 2014, the company announced a recall and replacement program in
cooperation with government regulatory agencies.This recall is for affected AC power cords
distributed worldwide with Lenovo IdeaPad computers which were sold in 2011 through 2012.
Earlier in 2012, the company recalled 13,000 Thinkcentre M70z and Thinkcentre M90z systems
due to a defect in the power supply that could lead to overheating and become a fire hazard.The
company also recalled a number of battery units. Significant product recalls indicates decline in
product quality which could negatively impact consumer confidence in Lenovo’s products and
could strain its sales. In addition, consistent future recalls could negatively influence the
company’s reputation in the market place.

Opportunities

32
 Growing smartphone and tablet market
The smartphones and tablets market is expected to grow at a robust pace in the medium term.
According to industry estimates, the global shipments for smartphones reached 1,250 million
units in 2014 as compared to 1,004 million units in 2013. Furthermore, smartphone shipments
are expected to grow at a CAGR of 13% between 2014 and 2018. Moreover, emerging markets
are expected to lead smartphone shipments with a CAGR of 16% during 2014-18 as compared to
a CAGR of 3.6% for the mature markets during the same period. Furthermore, the demand for
tablets is also increasing. The shipment of tablet PCs is estimated to grow from 233 million units
in 2014 to more than 304 million units by 2018, growing at a CAGR of 6.9% during 2014-18.

 Positive outlook for cloud computing market

The worldwide demand for cloud computing services is expected to record strong growth in
coming years. Cloud computing is a computing infrastructure model, which enables delivery of
SaaS. The appeal of cloud computing has been increasing as it enables companies to reduce
expenses such as upfront royalty or licensing payments, investment in hardware infrastructure
and other operating expenses. Consequently, the demand for cloud computing services has been
increasing and is expected to grow rapidly and cross $1.9 billion by 2018. In addition, public
cloud services market is forecasted to grow at 33% in 2015 to reach $838 million. The market is
expected to be driven by smartphones, tablets and high-speed internet access demand.

 Strategic acquisitions to boost topline growth

The company has completed a number of acquisitions in the recent past which will boost its
product portfolio and provide topline growth. For instance in October 2014, Lenovo acquired
Motorola Mobility from Google.The acquisition of the Motorola brand and Motorola's portfolio
of innovative smartphones like Moto X, Moto G, Moto E and the DROIDTM series, as well as
the future Motorola product roadmap, is expected to position Lenovo as the world’s third largest
maker of smartphones. In the same month the company acquired IBM’s x86 server business,
which included System x, BladeCenter and Flex System blade servers and switches, x86-based
Flex integrated systems, NeXtScale and iDataPlex servers and associated software, blade
networking and maintenance operations.

Threats

33
 Competitive pressure could reduce market share
The company faces intense competition in all its business segments. It competes in terms of
price, quality, brand, technology, reputation, distribution and range of products, among other
factors. Lenovo faces stiff competition in enterprise PC and server markets from Acer, Dell, HP
and Toshiba, among others. In some regions, the company faces competition from local
companies and from generically-branded or white box manufacturers. In the consumer market,
Lenovo faces intense competition from Dell, HP, Acer, Apple, Sony and Asustek. Furthermore,
in the European and Asian netbooks markets, its major markets for netbooks, the company faces
intense competition from Asustek. In addition, the company’s mobile business competes with
Apple, RIM, HTC, Nokia and Samsung. Growing competitive pressure could impact Lenovo's
operating performance and market share in coming years.

 Negative trends in PC sales could impact revenues

The increasing popularity of mobile computing devices such as tablets and smartphones with
touch interfaces has impacted the demand for desktop PCs. According to industry estimates, the
global PC shipments volume is expected to decline from 295.9 million in 2014 to 291.7 million
in 2018, representing a compound annual rate of change (CARC) of 1% during 2014-18.
Similarly, the PC shipments in mature markets are expected to decline at a CARC of 2% and
reach a shipment volume of 130 million in 2018. Further, the company’s shipments decreased by
6.3% reaching 9.2 million units in the first quarter of 2015. The decline in PC shipments is
expected to impact the company’s desktop business, which accounted for 72% of total sales in
FY2015.

 Declining average selling prices may strain margins

The average selling prices (ASPs) of mobile devices and smartphones continue to decline.
According to industry estimates, the ASP of smartphones is expected to decline from $297
worldwide in 2014 to $241 by 2018. The popularity of Google's Android platform has made
entry into the smartphone market easier for a number of hardware manufacturers, targeting the
mid-to-low range of the smartphone market. Furthermore, the popularity has resulted in
increasing commoditization in the smartphone market, impacting customer choices.
LENOVO MARKETING STRATEGIES

34
 Lenovo is one of the most popular computer and peripheral manufacturing units of the world,
which has risen manifold in size in the recent years and has been growing ever since. Lenovo
was found by the name of Legend in the year 1984 in Beijing, China, and was incorporated by
the name of Lenovo in 1988, and from then has enjoyed major proportion of the market and has
become one of the most important players in the computer and peripheral market. This giant, as
of now holds a very strong position in the market and has developed into a very reliable brand,
so much so that now it has even taken over PC manufacturing facility of IBM, apart from
agreeing to take over Motorola Mobility, the mobile phone manufacturing facility currently
owned by Google, which would further benefits its own range of mobile phones.

 Product:
Computer and IT based market is highly volatile and has numerous challenges that follow it, and
to overcome it a participant has to offer variety and technologically advanced products in order
to stay abreast and sustain the market. Lenovo is a brand that has widely differentiated and has
not depended upon a solitary class of items or administrations for its extension. The key for
Lenovo has been to furnish the business sector with a wide mixed bag of technology driven
products to satisfy their separate aspirations. This development has been focused around a broad
research and investigation of approaching needs of its clients and distinguishing a need even
before it exists, which makes an unedifying dependability and dependence among clients and
customers. It has offered machines, and continually enhanced them at consistent interims, and
wandered into working frameworks, and giving changes on them consistently keeping the pace
alongside the business sector.

There are a large varieties of products in which Lenovo has its expertise namely – Laptops,
tablets, smart phones, desktops, servers and accessories. The accessories of Lenovo are one of
the most selling and most in demand in the market. The products of Lenovo are known to be
dependable and reliable.

 Price

35
 Lenovo is priced competitively when compared to other top brands. In fact, in some areas like
accessories it also uses penetrative pricing. The key factor for Lenovo is to balance the price as
well as the brand value. If priced too low, then Lenovo risks the drop of brand image and
positioning in the mind of customers. However, if priced too high, Lenovo will lose customers to
competitors like Dell and Hewlett packard. On the mobile front, Lenovo has too less models to
be actually competitive and hence it uses a cost plus pricing method where a fixed markup is
added to the product. In the end, laptops are one of the leading products for Lenovo where it is
strongly placed on the pricing front – having high value for the demanded price of the product.

 Place
Lenovo has exclusive showrooms as well as multi brand showrooms. It markets itself through
modern retail, E commerce chains, and majorly through the vast numbers of IT and peripheral
shops present across the country. Typically, Lenovo operates through channel sales wherein
distributors are associated with the company. These distributors in turn give to individual
retailers and channel dealers. At the same time, Lenovo sells the products directly through
modern retail and through online channels. Because of channel marketing concept, Lenovo has
been able to spread far and wide for its products. Today, Lenovo has 60000 employees and is
present in 160 countries across the globe.

 Promotion
Due to its products, Lenovo has a certain measure of headway when it concerns the promotions
department. The technology segment and especially the IT marget is filled with competitors like
HP, Dell and Microsoft to make the competition very high in the segment. However, by using
the right marketing communications and by targeting geeky customers who like a bit of zing in
the products that they use, Lenovo has hit the right promotions mix. It has always showcased its
products as the right fit for their customers – which will get the work done. The concept is that
Lenovo makes machines which “Do the work” for the customers. The company uses various
ATL as well as BTL mediums to get its product across to end customers.

The Product Strategy of Lenovo

36
Lenovo's product strategy is the same as target market and positioning, mainly embodied as
follows: Middle and High End Market Positioning Take Lenovo’s personal computer as
example, the market survey shows that its refrigerators mainly focus on middle and high end,
Lenovo owns 70% market share in high end products, while the middle end count for 40-50%
market share, the market share of low end product is lower than 10%. Different Competition of
Product Development

Through segmenting the market, tapping users‟ unmet demand, thereby pre-empt competitors to
develop completely different products from the market, exclusive share the cake of segment
market. Seen from the introduction of Lenovo’s products in the past three years, we can see this
development idea. In light of this situation, in 2001 Lenovo introduced the "ThinkPad"
machines, which reaches not only to meet the needs of the users but also share the piece of cake
alone.

Focus Strategy
A focus strategy is aimed at a segment of the market for a product rather than at the whole
market or many markets. The major benefits of Lenovo‟ focus strategies are:

(1). It requires a lower investment in resources compared to a strategy aimed at an entire market
or many markets.

(2). It allows specialization and greater knowledge of the segment being served. (3). It makes
enter to a new market less costly and much simpler. Since Lenovo’s is regarded to adopt cost
leadership as its development strategy which share some features of differentiation in the current
by the author, the Lenovo’s competent advantage is developed from differentiation and cost
saving through value chain. Its core competence is illustrated:

· Improved supply chain;

· A cheaper price through lower transaction costs;

· Convenience and twenty-four-hour access;

· Good reputation among customers;

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· Quick and efficient search capability;

· The personality of the service;

· Wide selection and one-stop shopping;

· First mover in the market stronger than average and well-known.

Market Position of Lenovo

Lenovo’s marketing position mainly considers the following three factors: Take mainly to the
high-end, middle and high-end combination of market positioning methods. Middle and high-end
positioning can not only guarantee the consistency of Lenovo position in the market, also
continue the image and status in consumer's mind, while the computer industry‟ present status
such as the profits decline also decides the only choice for high-end positioning, will it be
possible to maintain the long-term favorable market competitive position (Gan, 2002). Generally
speaking, the high-end products‟ unit profits are 2 -3 times more than low-end products, in the
pressure of the rising cost situation, low-end products have no guarantee of profits, the profits of
enterprises is the key to taking the high-end route.

Low energy is not only the main consumer demand of IT industries, but also an image of the
representatives of high-tech enterprise, therefore, choosing low energy consumption and market
leading-edge technology positioning will enhance brand image. At present, the service content of
Lenovo brand is mainly limited to the after-sales service in a timely manner, etc. such narrow
positioning can no longer meet the needs of the competitive market situation. Management
master Michael Porter (2003) said, in the 21st century the multinational companies are unlikely
to be manufacturing companies, but the service industry.

Head Office

38
Lenovo Group Limited
23rd Floor
Lincoln House
Taikoo Place
979 King’s Road
Quarry Bay
HKG
P:852 2590 0228
http://www.lenovo.com/

39
LITERATURE
REVIEW

40
 The Case Study of the Dell

Dell Inc. is an American multinational information technology corporation which is based in

Round Rock, Texas, United States. The corporation being the largest technological corporations
in the world develops, sells and supports computers and related products and services which
employs more than 96000 people. The company bears the name of its founder, Michael Dell. The
company sells personal computers, servers, data storage devices, network switches, software, and
computer peripherals. The company is also popular for its HDTVs, cameras, printers, MP3
players and other electronics built by other manufacturers. The company is well known for its
innovations in supply chain management and electronic commerce. Dell's tagline is 'Yours is
Here' which is seen at their Mall of Asia branch Pasay City, Philippines. Their
Business/Corporate class represent brand where the company advertises emphasizes long life-
cycles, reliability, and serviceability. Such brands include Optiplex, Vostro, N Series, Latitude,
Precision, Power Edge; Power vault etc. Their Home Office/Consumer class emphasizes value,
performance, and expandability. These brands include Inspiron, Studio, XPS, Studio XPS,
AlienwareAdamo. Their Peripherals class is popular in market which includes USB keydrives,
LCD televisions, and printers. Dell monitors includes LCD TVs, plasma TVs and projectors for
HDTV and monitors. Their service and support brands include the Dell Solution Station , Dell
Support Center, Dell Business Support, Dell Everdream Desktop Management and Your Tech
Team . The general policy of the company to manufacture its products close to its customers so
as to minimize the delay between purchase and delivery has been really beneficial for the
company in terms of goodwill. This is done by implementing a just-in-time (JIT) manufacturing
approach, which minimizes inventory costs. Another signature of the Dell business model which
is a critical consideration in an industry where components depreciate very rapidly is Low
inventory. The manufacturing process of the company covers assembly, software installation,
functional testing, quality control and many more. Dell has proved be a great manufacturing
company. It manufactures desktop machines in-house and then contracted out manufacturing of
base notebooks for configuration in-house. Various innovation processes takes place in the

41
company which proves to be efficient for the company. Dell Inc. brands its service agreements at
five levels for their business customers. The first one being the Basic support which provides
business-hours telephone support and next business-day on-site support/ Return-to-Base or
Collect and Return Services which are based on contracts purchased at point of sale. Then is the
Silver support which provides 24Ã-7 telephone support and 4-hour on-site support after
telephone-based troubleshooting. The next being the Gold support which provides additional
benefits over and above Silver support. The Platinum Plus support provides additional benefits to
Gold Support. And the last but not the least is the two-hour on-site support. Another important is
the Dell's Consumer division which offers 24x7 phones based and online troubleshooting rather
than only during business hours in certain markets. Dell has put together packages of options for
each category of its customers be it small and medium-sized businesses, large businesses,
government, education, and health-care- and life-sciences.

42
 The case study of the lenovo

The Introduction of the Lenovo Lenovo is one of the largest famous personal computer makers
in the world. Today, Lenovo strives to be the global market share leader in each of the market we
serve. On September 24, in 2004, Lenovo purchased the personal computer business and the
brand “ThinkPad” famous computer IBM in the IT industry all over the world. This landmark
transaction is taken as its most important stage of the international strategy in the computer
industry. This marks the trinity Lenovo's internationalization strategy has risen to a new stage,
which indicates that Lenovo already in the United States established a brand-name image
localization. Now, the Lenovo has become the global application company (sales) that have their
own package plants in more than 7 countries and cooperation plants in many countries and make
the local enterprises business license and distribution contract. Lenovo is also one of the major
global companies (sales), and it has its own production plants in 7 countries, its products are
marketing in nearly 80 countries. Analysis of the Marketing and Management Capabilities In the
domestic market, according to statistics of ZhongYikang Company: Lenovo is actually the first
brand in Chinese IT industry: Lenovo’s overall share of computer market in China has reached
21%, significantly ahead of competitors; Lenovo has a monopoly status in the personal computer
market; Lenovo’s personal computer market share is 24%, which is much higher than the
internationally recognized monopoly; Lenovo also surpasses in the business computer market;
Lenovo’s business computer market share is 14%, which is higher than domestic computer
suppliers and the strong brand ranks the first. In the international market, Lenovo has three
products occupy the first three positions in the world market share of the computer industries.
According to the results of the latest survey of the global authority consumer market survey and
analysis institutions, EUROMONITOR show that on turnover statistics, the Lenovo Group
ranked the third in the world personal computer manufacturers, Lenovo's goal is to become the
world's first personal computer manufacturers in the near future.

43
44
 Comparision between the features of Dell and Lenovo

Basis Dell Lenovo

Availability Franchise Stores Internet
Internet Franchise Stores
Retail Shops
Market Share 16.7% of the total market 10.4% of the total market
Price Dell Lenovo
Inspiron 11 3148-Rs 36,500 G50-70- Rs25,000
Inspiron 15 3543-Rs 26,000 G50-45- Rs30,000
Products Personal computers (PCs) Laptops
Servers, Desktops
Data storage devices, Tablets
Network switches, Workstations
Software, Servers
Computer peripherals, Storage devices
HDTVs, Networking products
Cameras, printers Software
MP3 players
Competitors Apple, HP, Lenovo, Compaq Acer, Dell, HP, Apple
Origin of the USA China
company

45
 Market Share

Dell is the market leader in laptops market with about 16.7 % market share.
Followed by Acer having 12.1% , and than by HP having 11.2% and than by
lenovo having 10.4% maket share .

Findings

46
 Dell is the Legend of Laptop market on basis of product , place, promotion.
 Lenovo is best on the basis of price because Lenovo laptop are available at low cost.
 Dell is the market leader having a share of 16.7% and lenovo has a market share of around
10.4%.
 On the basis of swot -
Strength and threats are almost same of dell and Lenovo.
Weakness are different because Lenovo enter in smart phone market and dell is not there.
 Dell provides much more features in comparison to Lenovo.
 Dell provides better quality hardware than Lenovo, so it is much more preferred in India.

47
 Conclusion :-
In India, both the Dell and Lenovo has a very bright future. There are many
different Models with these companies. This research states that Price , processing
speed, battery-life are the most important factors which affects the purchase
intense of the customers. So both the companies should focus on these factors to
increase their sale.

We think that by impleting the suggestions made , the company Dell and Lenovo
can overtook its competitors to become No 1 in the market. The thing the company
need the most is the flexibility to ‘Adapt’ and then ‘Adopt’ as well , when the
market demands .

48
 Limitations

 This study is based on the limited data that is availble on the internet and guidance
 We are unable to conduct limited surveys from customers
 Full Fledged data was not available
 Filteration of data was difficult.

49
 Suggestions

 There should be difference in pricing strategy of Dell and Lenovo ie, in urban and rural
market.
 Dell Should improve their display quality .
 Dell and Lenovo should provide online good schemes and offers on their laptop so that
people may also prefer to buy it online.
 Dell and Lenovo should improve their audio quality.
 Lenovo should also improve their battery backup.

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 Biblography

 www.dell.co.in
 www.lenovo.com
 www.ebscohost.com

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