The problem with Lenovo over the past few years has been that it has not been able to establish its own domestic sales competency, including the failure to re-introduce a star product that has impressed consumers.
On May 16th, Lenovo’s Chairman of the Board of Directors and CEO Liu Yuanzhi, Lenovo Group’s Chairman and CEO Yang Yuanqing, and Lenovo’s President Zhu Linan issued a topic “Acting on Action” in response to the public opinion turmoil caused by Lenovo’s “5G voting door” incident. A joint letter of swearing to win the Lenovo Honor Defence Battle, stating the actual situation of '5G voting' and the results of the investigation.
Two years later, Lenovo's 5G standard voting old account was turned up, pushing Lenovo to the slogan of 'treating the country' and facing a huge glorious crisis. In fact, apart from the honour crisis that Lenovo faced today, Lenovo also Faced with the 'middle age', the market competitiveness continues to decline.
First of all, Lenovo is facing the embarrassing performance. The financial report shows that in the fourth quarter of 2017, Lenovo Group changed from a profit of 98 million US dollars to a loss of 289 million US dollars, significantly lower than the market expected profit of 124.5 million US dollars.
Examining Lenovo's financial statements for the first two quarters, it is not hard to find Lenovo's main business, PC (personal computer), data center, mobile business and 'device + cloud' business are also mixed.
Secondly, Lenovo was also recently kicked out of the Hong Kong Hang Seng Index. This is the second time that Lenovo has been kicked out by the Hang Seng Index. It entered the Hong Kong Hang Seng Index in 2000, was kicked out six years later, and rejoined in March 2013.
The reason is that in recent years, Lenovo has been the global PC market king. However, with HP's catch-up, and Lenovo's PC sales team is responsible for selling servers, Lenovo's PC market has recently been declining. Lenovo’s senior vice president of global sales and marketing Rod Lappin said that the excessive integration of PC and server business led to a decline in sales of x86 server business acquired from IBM.
For another reason, the loss of Lenovo's mobile phone has hit Lenovo's performance. Three years ago, Lenovo happily towed Motorola into the door. However, Fangfang has doubts about the value of this acquisition, thinking that 'second marriage' Motorola from Google's embrace. Turning to Lenovo may be a burden to Lenovo.
On May 16, Liu Chuanzhi publicly admitted that the mobile phone business was doing poorly, but it should not be the cause of being 'black'. Lenovo's 2016-December 2016 financial results show that net profit decreased by 67% year-on-year to 9800. Million US dollars. Among them, the sales of mobile services based on smartphones decreased by 23% and the loss was US$112 million. It is clear that the mobile phone business has dragged on Lenovo.
For its original purpose, Lenovo's acquisition of Motorola once again showed that Lenovo's use of mergers and acquisitions in the process of becoming an international market is becoming increasingly sophisticated. Lenovo had previously recruited IBM and recruited IBM's “pass” to enter the US market. Now again, 'take down' Motorola, this time Lenovo's mobile phone to open the European and American market channels.
However, the high-minded feelings and good wishes cannot be considered as market competitiveness. After seeing Motorola's golden signs, Lenovo's mobile phone lost its direction in strategy and missed two strategic opportunities.
The sudden and unexpected executive changes again and again have pushed Lenovo to the cusp. In the past few years, Lenovo’s high-level mobile phones have changed in a similar way, resulting in serious consequences of lack of continuity in strategic planning. Fire, quick success, making Lenovo mobile phone's strategic direction erratic.
In April 2017, Yang Yuanqing formulated the three-wave strategy of Lenovo Group, namely the computer field, the mobile phone business and the new smart device and the “device + cloud” model. The latter is the focus of Lenovo’s future. In the expectation of Yang Yuanqing, this year’s In six months, the outside world will see the effectiveness of Lenovo's transformation. 'Smart phones will enter the track of turning losses into profits.'
Some people say that Lenovo has entered the 'middle age'. The problem with Lenovo over the past few years is that it has failed to establish its own domestic sales competency, including the failure to re-introduce the star product that will impress consumers. 2018 will be In the key year when Lenovo turned its back on its knees, Liu Chuanzhi personally encouraged him to do something. Lenovo will take a big step next time. At this time, a more hard support point will be needed to reverse the crisis. Let's look at the strategic layout of Lenovo.
We are pleased to see Liu Chuanzhi’s “descent” at the critical moment of “Living in the Hearts of the Rivers and Lakes”, which will bring Lenovo to rejuvenate its glory.