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Lenovo Group is restructuring its business in accordance with the offensive (emerging markets) and security (mature market) models.
Yesterday, Lenovo Group announced the establishment of a new business group - Mobile Internet and Digital Home Business Group. Senior vice president of Lenovo Group and former product group president Liu will become the president of the new group.
The Mobile Internet and Digital Home Business Group is responsible for the development of mobile Internet terminals, including tablet PCs, smart phones, and end products including cloud computing, smart TVs, and digital homes. The group will be responsible for the development of services and applications that will drive next-generation converged terminals. Lenovo Group will upgrade Peter Hortensius, former head of the Think Products Group, to take over as president of the product group. He will work at Lenovo's US headquarters in North Carolina.
Yang Yuanqing, the CEO of Lenovo Group, has been building the Lenovo Group's business in accordance with the "offensive and security" double-fighting model. According to him, under normal circumstances, emerging businesses will act as offensive businesses, and mature businesses will become security services, whether they are new or emerging. Mature businesses will once again find new ways of growth in accordance with the offensive and security strategies. Lenovo Group's other business groups also made corresponding adjustments this time.
Previously, Lenovo Group divided its business according to the front-end and back-end. The back-end includes Think Products Group acquired from IBM and Idea Products Group independently developed by Lenovo Group. Think Product Group was formerly the former senior vice president O'Sullivan. Idea products The group is headed by Liu, but since O'Sullivan retired, the “Defendive†Think product group and the “Offensive†Idea product group have merged to form a product group. Lu Yan and Wei Jun, vice presidents of Lenovo Group, are responsible for the two businesses respectively. . The product group is tied with the newly formed Mobile Internet and Digital Home Business Group, which means that the product group will become a “defending business†and the digital home business group will be an “offensive businessâ€.
According to informed sources, Lenovo’s front-line operations include “offensive†emerging market groups and “defensive†mature market groups. The person-in-charge is Lenovo’s senior vice president, emerging market group president Chen Shaopeng and Lenovo’s senior vice president. President, Mature Market Group President Milko Van Duijl. In this adjustment, the front-end business and the person in charge of the two groups remain unchanged.
In fact, the two concepts of offense and defense since Yang Yuanqing’s re-engagement as CEO in February 2009 have gone deep into Lenovo’s various businesses. Chen Shaopeng once told reporters that in emerging market groups, business has been growing and the stable China is defending business while other countries will become offensive business. Similarly, Chen Xudong, vice president of Lenovo Group and general manager of China, also told reporters that in China's business, first- and third-tier cities have become “guard-type†businesses, while fourth- and sixth-tier cities are “offensive†businesses.
Lenovo Group, which has been relying on the growth of the PC business, has released a new mobile internet product since the mobile internet strategy was launched on April 19, 2010, including the international consumption held in Las Vegas recently. At the Electronics Show (CES), Lenovo launched the IdeaPad U1 dual-mode notebook and Le Pad tablet, and demonstrated smart TV and digital home technology. At the same time, it plans to develop and launch new products in related fields. Yang Yuanqing said: "The establishment of the Mobile Internet and Digital Home Business Group is a manifestation of our two-punch strategy of firmly implementing the 'Defend and Attack' strategy. We will use our leadership position in the PC field with our rich mobile Internet terminals and digital homes. Products, attack this high-growth field."
According to an IT analyst who did not want to be named, Lenovo Group decided to develop mobile Internet business after the success of Apple Inc.'s iPhone and iPad. The timing is much better than in the early years, but "the key depends on the specific The implementation and creative ability of traditional IT companies have not been successful in the transformation of mobile Internet companies.
However, it is worth noting that at the beginning of 2008, Lenovo Group sold all its equity in its mobile phone business for US$100 million to private equity funds led by Hony Capital. At that time, Lenovo Group stated that the sale of mobile phone business will help Lenovo implement a long-term strategic development focus. This will enable the Group and its management to focus on the development of the core PC business while also enabling the handset business to operate independently and formulate its own strategic direction.
In November 2009, Lenovo Group announced to spend 200 million U.S. dollars to repurchase Lenovo’s mobile business. In January 2010, Lenovo officially announced the Lenovo mobile Internet strategy and launched the first generation of mobile Internet terminal products, including the smartbook Skylight, smart phone Music Phone and the new innovative IdeaPad U1 dual-mode notebook.
When Lenovo Group released the second quarter results last year, Yang Yuanqing said that Lenovo’s music phone handset shipments last quarter were slightly higher than the previous quarter, which was about 120,000, but it did not reach expectations. The industry believes that the Lenovo Group set up mobile Internet and digital home business group, the purpose is to strengthen this business.
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