Lenovo begins its reform plan
The largest computer maker in China—Lenovo has reorganized its regional operations into two business groups, at the same time, it has also established two product groups to deal with the global financial crisis.
It is said that Lenovo will focus on the developed and emerging market, Milko Van Duijl, Lenovo’s president in EMEA (Europe, the Middle East and Africa) region, will be in charge of the mature market group, such as United States, Japan and Australia market.
In addition, the emerging market which includes China, Russia, India and Africa will be led by Chen Shaopeng, president for Asia Pacific region and Russia.
It is also said that two product groups are going to be established by Lenovo, and both of the groups are based on the “Think” and “Idea” branded products, the “Think” brand mainly serves the corporate customers, while the latter one serves consumers.
The CEO of Lenovo, Yang Yuanqing, said in a statement that though different markets have different characteristics, Lenovo will still use the similar market strategy.
Yang said that Lenovo’s work is to build a faster, more streamlined organization so they can capture the growth opportunity as quickly as possible and pay more attention on their core business.
After Lenovo releases a net loss of $96.7 million last month for the fourth quarter ending December, the company’s reform plan finally comes. In the plan, the company’s founder Liu Chuanzhi would return as chairman and Yang Yuanqing will become chief executive instead of Bill Amelio.
Earlier Liu said that Lenovo would become to focus on the emerging market such as China and other countries, because many large companies in mature market have decided to decrease their IT investments due to the financial crisis.
In a recent E-mail to the staff in Lenovo, Liu said that Lenovo would be recovered within a year.
IDC, a US research company, estimated that global PC shipments will have a 4.5% fall to 282 million this year. Consequently, many PC-making leaders like HP and Dell decide to lower the cost by cutting employees and making operations more efficient.
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