Business Strategy

The consolidation of the Chinese computer giant Lenovo Group and the PC unit of the US behemoth IBM took its first step, as executives from both companies revealed their strategies for the Chinese market yesterday.
Here is the link of article(http://english.sohu.com/20050224/n224410011.shtml)

Let’s take a concrete example, Lenovo put more than 10 million dollars in buyer power every year. And put more than 10 billion dollars in supplier power. Meanwhile Lenovo put more than 10 million dollars in services for the force of threat of substitute products or services. Lenovo also put more than 50 million dollars in technical innovation for the forces of threat of new entrants and Rivalry among existing competitors. Now it is clear for us see how much power each of the 5 forces has through how much money they put in each 5 forces. How does Lenovo reduce the buyer power? They create a competitive advantage by making it more attractive for customers to buy from them than from their competition. For example, they asked some super stars to join their advertisements and create many pretty cool and convenient functions. Lenovo actually is a customer of other supplier organizations. Because Lenovo never produced any parts. Lenovo just put every parts together and then sell it. And many supplier organizations want to increase their buyer power so that they are willing to sell their products to Lenovo. So Lenovo could get what they need in lower price. So Lenovo could reduce their supplier power. How do they create switching costs and entry barriers? Lenovo put a large amount of money in customer services and technical innovation. Meanwhile they spent a lot of money in improving their quality. So there are more and more people prefer choosing Lenovo rather than choose others. As we all know, a lot of demand bring them a lot of profits.

SCM- Lenovo embraces the values of customer service, innovative and entrepreneurial spirit, and integrity. Lenovo seeks to integrate these core values into every aspect of its business and into policies and procedures in areas of quality and safety for products, employee welfare, managing a global supply chain, ethical corporate behavior, social investments and environmental affairs.

The IT organization of Lenovo is fully integrated throughout the organization. And their philosophical approach is decentralized, early adopters of technology empower employees throughout the organization to try new and emerging technologies in the hope of finding a few that can provide significant competitive advantage.
(1)Overall cost leadership (2).differentiation (3).focus It will also further differentiate its brand and product positioning, establish a corresponding end-to-end integrated organizational structure, and create product marketing mechanisms that can react to market changes more quickly.

E-Commerce

Kinds of e-commerce
All kinds of business to business(B2B) e-commerce, business to consumer(B2C), business to government(B2G)are used in lenovo.
here is a link for businesses (http://shop.lenovo.com/SEUILibrary/controller/e/web/LenovoPortal/en_US/special-offers.workflow:ShowPromo?LandingPage=/All/US/Portals/resources)
Types of marketing mix
Both B2B and B2C are used in lenovo. Marketing mix of B2C, like registering with search engines, online ads, viral marketing, and affiliate programs are all used in lenovo. Also, marketing mix of B2B is used too.
Link for Affiliate Program(http://affiliates.lenovo.com/affiliates/files/aff-program.html)

Payments
Payments of financial cybermediary and electronic bill presentment and payment of B2B are used. Electronic data interchange and financial electronic data interchange are both used too