Lenovo Acquires to become 3rd Largest Each time

3 is a Lucky Number in China, and Chinese businesses are very conscious of number before and after any engagements. Lenovo again repeats its love for 3 by becoming the...

3 is a Lucky Number in China, and Chinese businesses are very conscious of number before and after any engagements. Lenovo again repeats its love for 3 by becoming the world’s 3rd largest maker of smartphones as it completes acquisition of Motorola Mobility from Google. What does this mean for Google? Google will continue to maintain ownership of most ofMotorola Mobility’s patent portfolio, while “Lenovo” will receive a license to this rich portfolio of patents and other intellectual property. Lenovo will keep the Motorola Mobility brand and trademark portfolio.

The total purchase price of approximately US$2.91 billion for the Motorola brand and Motorola’s portfolio of innovative smartphones like Moto X, Moto G, Moto E and the DROID trade mark series, as well as the future Motorola product roadmap, positions Lenovo could yield major wins for Lenovo as it struggles to deliver premium handsets.

In 2013 Lenovo became the world’s largest personal computer vendor by unit sales from its prior 3rd place. Lenovo, which became 3rd largest personal-computer maker after it bought IBM’s personal-computer business ( The ThinkPad line of notebook computers and the ThinkCentre line of desktops) in 2005, continues its rabbit pace with clear and smart strategic acquisitions to support today’s survival skills in equipment manufacturing.

As a Chinese multinational computer technology company with headquarters in Beijing, China, and Morrisville, North Carolina, United States. It designs, develops, manufactures and sells an array of personal computing ware including, tablet computers, smartphones, workstations, servers, electronic storage devices, IT management software and smart televisions.

Lenovo’s plans to expand in the server market is also an attempt to find new engines for growth beyond the saturated PC market. With the announcement to buy the IBM server unit in January raising concerns among many IBM customers, it seems almost likely the deal will pass all concerns and once more place Lenovo in the top quadrant of leading server manufactures.

The new momentum behind Chinese investment in economies outside Asia is spurred by changing commercial realities that are forcing Chinese firms to look abroad. In the past, the attraction of growth at home overshadowed the lure of overseas opportunities coupled with state control and with limited outward FDI.

The most significant hurdles for Chinese firms looking to expand their footprint outside Asia are not purely a matter of foreign policy or politics, but a lack of capability and experience with overseas investment as these markets maintain high sophistication. While in the past, most Chinese firms focused themselves in establishing competitive domestic market to serve overseas markets through exports, this trend is changing with a need to innovate and improve quality using and leveraging foreign skills and expertise.

With a growing realization of the gap, and increasing diversification, Chinese establishments and businesses are executing both outside-in and inside-out strategic capability improvements that is opening up a new take on quality, cost management and most importantly innovation. We’ve seen and heard of aggressive recruitment of expatriates as injection into Chinese firms for the soul purpose of improving quality and driving innovation.

Now while it can be argued that this is no easy feat, successes by Chinese firms to innovate and deliver quality yet affordable can be seen with company’s like Alibaba, Xiaomi, Lenovo, Huawei, Tencent, Baidu and more. The game has changed, and we’re just at the eve of the Chinese action, like it or not.

 

Sources & Credits: Lenovo Group Ltd., IBM, Google, Wikipedia

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