Nottingham University Business School
Business Economics (N14M79)
Is It a Successful Strategic Decision for Lenovo – the Merger between Lenovo and IBM?
Lu Xiang (012241)
Word Count: 2,000
With the rapid economic development and globalization, merger and acquisition (M&A) have been recognized as one of the valuable opportunities for local companies to expand themselves and touch the international market. The merge between Lenovo and IBM also aims to achieve similar purpose. Thus, the objective of this paper is to evaluate and identify whether this cooperative merger is a successful strategic decision for Lenovo or not by PEST and SWOT analysis. Then, the final results of analysis illustrate that this merger should be identified as an initial successful example, and more improvements need to be considered for maintaining profitability and sustainability.
1. Merger between Lenovo and IBM 2
1.1 What are Lenovo and IBM? 2
1.2 Industry overview 2
1.3 The merger within two companies 2
2. PEST Analysis for This Strategic Decision 2
3. SWOT Analysis of This Strategic Decision for Lenovo 2
With the trend of rapid globalization in macroeconomic environment, merger and acquisition (M&A) have become one of the valuable opportunities and challenges gradually, especially for local firms which tend to expand their scale/scope and enter the global market for accessing more probable customer segments. Therefore, companies not only can receive sufficient support in terms of manufacturing, finance, marketing and management techniques through M&A, they but also may avoid corporate weaknesses and share the possible cooperative risks to new components. In this case, more Chinese enterprises select this boundaryless approach to gain strategic assets in order to solve the problems of their backdraws in competition (Deng, 2009).
The purpose of...