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SUMMER INTERNSHIP REPORT
ON
„Feasibility of Notebooks against Desktops‟
SUBMITTED BY
SHISHIR GARG (PG 09 40047)
(Accman Institute of Management, Greater Noida, UP)
Carried out during
Summer Internship Program
At
LENOVO INDIA PVT LTD.,
Vatika Business Park, Sohna Road,
Sector-49
GURGAON, HARYANA
SUBMITTED TO:
Prof. SUBIR GUHA (Faculty, Accman Institute of Management)
&
Mr. Pyush Khanna (Business Manager, LENOVO INDIA PVT LTD.)/
Mr. Siddharth Sharma (Sales Specialist, LENOVO INDIA PVT LTD).
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CERTIFICATE FROM LENOVO
TO WHOMSOEVER IT MAY BE CONCERNED
This is to certify that Mr. Shishir Garg, son of Dr. R. S. Baranwal, a student of
Post Graduate Diploma in Management (PGDM), session 2009-2011 at the All
India Council for Technical Education (A.I.C.T.E.) approved college Accman
Institute of Management, Greater Noida, has worked as a management trainee
at Lenovo India Pvt. Ltd., Gurgaon for two months (May 01, 2010 to Jun 30,
2010), as a part of his Summer Internship Programme (SIP).
To the best of our knowledge, he is a very sincere and dedicated person. We
wish him a very bright future.
Authorized Signatory
DATE: / /
3
DECLARATION BY THE CANDIDATE
I, Shishir Garg (PG 09 40047), hereby declare that the project report entitled
„FEASIBILITY OF NOTEBOOKS AGAINST DESKTOPS‟, which is
being carried out at LENOVO INDIA PVT LTD., GURGAON during the
SUMMER INTERNSHIP PROGRAM of our college, ACCMAN INSTITUTE
OF MANAGEMENT, GREATER NOIDA, as the partial fulfillment of the
requirement for POST GRADUATE DIPLOMA IN MANAGEMENT
(PGDM 2009-2011) as per the AICTE norms, submitted to my Project Guide
Mr. Pyush Khanna (Business Manager, UP and Uttarakhand, LENOVO INDIA
PVT LTD.), to my faculty Guide Prof Subir Guha (Faculty, ACCMAN Institute
of Management) and to Prof S C Ghosh (CHIEF CRIC), is my original work and
not to be submitted for the awards for any other degree, diploma, fellowship or
any other similar title or prizes.
Shishir Garg
Place: New Delhi. (SHISHIR GARG)
Date: Jul 12, 2010. (PG 09 40047)
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Acknowledgements
"Your treasure house is within; it contains all you'll ever need."
Making of this project was a tough job for me, right from understanding the topic to completion of the project; every other work questioned my abilities, attitude, innovative skills, inter-personal skills and the learning process about the subject (BUSINESS RESEARCH) which began couple of months ago.
Thanks to some wonderful people who were with me in the form of Guide, teachers, motivators, parents and of course our competitors who motivated me and instilled in me the confidence I needed desperately to do the job.
While it is not possible to name all of them, I would still like to mention a few important ones . . . .
I would like to give my sincere thanks to my Project Guide “Mr.Pyush Khanna”, Faculty Guide “Prof Subir Guha”, motivator and CRIC Chief “Prof S C Ghosh”, my corporate Mentor Mr. Siddarth Sharma & all other faculties and some wonderful intellectuals at LENOVO INDIA for keeping the faith in me. I would like to thank the CRIC of ACCMAN Institute of Management for providing such a wonderful experience of Summer Internship Program at such an esteemed organization LENOVO INDIA PVT LTD. – THE WORLD’S LARGEST PC MANUFACTURER.
I would like to thank to my friend, batch mate and colleague in this project, Mr. Deepak Kumar; we both have helped each other a lot whenever we felt some very hard problems, and we faced those problems very boldly. It was a very good experience to do my Summer Training with such a gentle man. I would like to offer my thanks to my friends and family members who were there for me in every thick and thin of mine. Every time, I felt tired and defeated they uplifted and filled me with energy. They understood me when no one could. Without mentioning the names I wish to thank them ….. I know they will understand my feelings for them.
SHISHIR GARG Date:-12\07\2010
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INDEX
1. COVER PAGE.
2. CERTIFICATE FROM LENOVO INDIA PVT LTD.
3. DECLARATION FROM THE CANDIDATE.
4. ACKNOWLEDGEMENT.
5. INDEX.
6. EXECUTIVE SUMMARY.
7. OVERVIEW OF INDIAN PC INDUSTRY.
i. Introduction
ii. History
iii. Major Players.
iv. Critical Success Factors
v. PEST Analysis
vi. Structural and Regulatory Reforms.
vii. Future of Indian PC Industry.
8. COMPANY PROFILE.
i. Background.
ii. Vision.
iii. Mission.
iv. Culture at LENOVO.
v. Objectives.
vi. Awards and achievements.
vii. Performance Heighlights-2009-10.
viii. Recognitions.
ix. Range of Products and Services.
x. Michael Porter‟s five forces Model.
xi. TOWS Matrix.
xii. SWOT Analysis.
xiii. Strategic Analysis.
xiv. Financial Position.2009-2010.
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9. OBJECTIVE OF THE PROJECT.
10. RESEARCH DESIGN.
11. DATA COLLECTION METHODS.
12. NEED FOR INFORMATION.
13. SOURCES OF INFORMATION.
14. SAMPLE PLAN AND SAMPLE SIZE.
15. RESEARCH METHODS.
i. Field work.
ii. Probing.
iii. Recording the response.
16. RESEARCH INSTRUMENTS.
i. Questionnaire.
ii. Observation.
iii. E- Mail.
iv. Interview.
17. DATA ANALYSIS.
i. Scoring.
ii. Editing.
iii. Coding.
18. CONCLUSION.
19. ALTERNATIVE SUGGESSTIONS FOR LENOVO INDIA PVT LTD.
20. BIBLIOGRAPHY.
21. ANNEXURE.
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EXECUTIVE SUMMARY
We started our summer training at Gurgaon branch of LENOVO INDIA PVT
LTD with an exuberance of exploiting the awaited opportunity to get the much
needed corporate exposure on May 01, 2010.
After a couple of days of induction, we were assigned to work on ‘the feasibility
of notebooks against desktops’. We grabbed this task as a challenge to prove
ourselves and hence, proceeded with a great excitement towards the
accomplishment of the same. This project gave us an exciting chance to aware
ourselves with the overall knowledge of the existing PC Industry in India.
Though, every other work challenged our skills and dedication, we also managed
to get rid of those with the help of some wonderful people around us.
It was a mixed experience of sorrow and delight while we were scanning through
every nuke and corners of several corporate, B schools, malls and even
individuals. At one place where we received a warm welcome with a glass full of
cold water in such a scorching Sun over our heads, at the other, we were just
pulled out of the doors. Yet, when our survey came to an end, we got a
marvelous response along with a bunch of corporate contacts, which might help
us in our future endeavors.
Also, we managed to excavate some astonishing facts related to our objective
which is hoped to be helpful to LENOVO, in order to strengthen their business
empire. All the findings, along with respective suggestions and recommendations
have been encrypted in our analysis part.
Finally, we extend our heartiest thanks to Mr. Siddharth Sharma, in whom we
saw a glimpse of corporate excellence and a wide source of learning through his
experiences, Mr. Piyush Khanna, our project guide, who could share only a few
of his valuable experience and guidance owing to his very busy schedule and
honorable Ghosh Sir, Chief CRIC, ACCMAN, who provided us such a
wonderful opportunity to work with such a reputed global brand.
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OVERVIEW OF INDIAN PC INDUSTRY
INTRODUCTION
The PC Industry in India is a rapidly expanding industry. It has shown a remarkable
growth in a very short span of one and a half decade after the economic liberalization
took place in 1991.
Post economic liberalization era and open market trade policy has opened the Indian
market for the global players. This experiences the intense competition with the global
giants like IBM (which later became LENOVO in 2005), HP, DELL, etc along with
some domestic brands like HCL, ZENITH, etc.
The PC industry in India has undergone a radical change during post millennium
period (2000-2010). A vast investment in the field of research and development with
the advancement of innovative technologies, Indian PC industry has been able to serve
the different aspects of the life which ranges from education to industries, railways,
aviation, shipment, space research and satellites to missiles, media to politics and even
to all kinds of criminal investigation departments.
The phenomenal growth rate of this industry in India is helping to stabilize the
economic balance with 27% contribution in the country‟s Gross Domestic Product.
Millions of employment opportunities originate from this industry which contributes
in increasing the per capita income of India from Rs.14400 p.a. in 1995 to Rs.38000
p.a. in 2010. Thus, the firm growth of Indian PC industry has helped the policy
makers to eradicate even poverty up to certain extent.
The growth of computer industry in India has led to the growth of software industry,
the hardware industry and the internet in India. GOI has accepted the fact that in order
to meet the expanding demands of India's more than 1 billion population, intensive
computerization is not only inevitable but imperative. One can hardly imagine the
present growth rate of this industry- the country which had only 100 computers in
1970s, currently holds more than 50 millions of computers i.e. one out of every 20
Indians own a PC.
HISTORY
The PC Industry in India started on a high growth path in mid 1980s. With the New
Industrial Policy of 1984-85, the Indian PC industry was liberated from heavy
government regulations (namely, the Monopolies and Restrictive Trade Practices Act)
on import of foreign technology and was allowed to form collaborations with foreign
firms.
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MAJOR PLAYERS
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CRITICAL SUCCESS FACTORS‟ ANALYSIS
Critical Success Factors (CSF‟s) are the critical factors or activities required for
ensuring the success your business. The term was initially used in the world of data
analysis, and business analysis.
Most smaller and more pragmatic businesses can still use CSF‟s but we need to take a
different, more pragmatic approach. Critical Success Factors have been used
significantly to present or identify a few key factors that organizations should focus on
to be successful.
FACTORS
WEIGH-
-TAGE
LENOVO HCL DELL ACER HP
R T.W. R T.W. R T.W. R T.W. R T.W.
COST
EFFECTIVENESS
0.3 8 2.4 6 1.8 5 1.5 7.5 2.25 7 2.1
CORPORATE
CULTURE
0.05 6 0.3 8 0.4 6 0.3 6 0.3 7 0.35
SERVICES
RENDERED
0.1 8 0.8 6 0.6 6 0.6 6 0.6 8 0.8
CUTTING EDGE
TECHNOLOGY
0.05 9 0.45 7 0.35 8.5 0.43 6 0.3 8.5 0.43
BRAND
IDENTITY
0.15 6 0.9 9 1.35 7 1.05 6 0.9 8 1.2
CUSTOMER
SATISFACTION
0.15 9 1.35 8 1.2 8 1.2 7 1.05 9 1.35
EMPLOYEE
BASE
0.05 7 0.35 9 0.45 5 0.25 5 0.25 8 0.4
AESTHETIC
FEATURES
0.05 6 0.3 7 0.35 9 0.45 6 0.3 7.5 0.38
MARKET
SHARE
0.1 3 0.3 4 0.4 5 0.5 2.5 0.25 8 0.8
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PEST ANALYSIS
A PEST analysis most commonly measures a market. Generally speaking a SWOT
analysis measures a business unit or proposition or idea, whereas a PEST analysis
measures the market potential and situation, particularly indicating growth or decline,
and thereby market attractiveness, business potential, and suitability of access market
potential and 'fit' in other words.
PEST helps to identify SWOT factors.
PEST assesses a market, including competitors, from the standpoint of a particular
proposition or a business, whereas SWOT is an assessment of a business or a
proposition, whether of your own or a competitor's.
All businesses benefit from a SWOT analysis, and all businesses benefit from
completing a SWOT analysis of their main competitors, which interestingly can then
provide some feed back into the economic aspects of the PEST analysis.
The four quadrants in PEST vary in significance depending on the type of business,
e.g. social factors are more obviously relevant to consumer businesses or a B2B
business close to the consumer-end of the supply chain, whereas this is not the case
with SWOT.
a. Political Factors Influencing Indian PC Industry:-
i. Government Stability
As we know that government instability leads to economical & political hazards
like inflation, dumping share markets, etc. hence government stability is a boon
for the growth of any industry.
ii. Environmental Protection Laws
In contemporary world of personal computing, modern PCs are needed to be
disposed according to the local-state and federal laws, to protect the
environment.
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iii. Special Incentives
Such types of perks are provided to the employees in order to motivate them
towards their contribution and commitment. These special incentives fill
exuberance among the employees and thus increase the CAGR/SAGR of the
organization.
iv. Attitude Towards Foreign Companies
Indian government has already opened its doors for the foreign players in this
industry.
b. Economical Factors
i. GDP Trends
A country is known by the services it offers. Indian PC Industry contributes 7%
of the overall GDP growth of India.
ii. Inflation Rate
While entire industry‟s growth rate declined during the global meltdown,
Indian PC industry also experienced the Inflation rate of 11.89%.
iii. Employment Generation
Approximately 10 million people are working in this industry and it is expected
to grow at the rate of 22% in the next decade.
iv. Pricing Strategy
With the intervention of open market, a revolution emerged, as a result of which
major global player grabbed Indian PC market, which ultimately led to the rapid
downfall of PC prices thus enabling almost all the middle class people to afford
computers.
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c. Socio-cultural Factors
i. Changing Lifestyles
As we know that „human wants are unlimited‟ so, in this changing scenario,
computers have become the essential part of the lifestyle of the contemporary
world and in these too, anywhere and anytime computing has brought a sea
change in the trends of carrying a notebook instead of antiquated desktops.
ii. Career Expectations
With the introduction of PC industry, a revolutionary change is being
experienced in every field of our life, be it education, transportation, business,
or even small shopkeepers like groceries, stationeries, chemists, etc.
iii. Consumer Activism
Several laws like RTI (Right To Information Act 05), Consumer Protection Act,
etc. and majorly the internet accessibility to every door has made the consumers
aware of the ifs & buts in all kinds of transactions.
iv. Growth Rate of Population
Higher the population more is the demand for PCs and since we (INDIANS)
stand at the second position in the world in terms of population, so there is a
wide scope for the growth of this industry in our country as compared to
others‟, except China.
d. Technological Factors
i. Industry Spending on R & D
Currently the Indian PC industry is spending approximately 7% of their overall
revenue i.e. 945 cr in its Research and Development.
ii. Cutting-edge Technologies
Indian PC industry has introduced various innovative features like Green
Computing, Noise control Technology, Aesthetic features, Face recognition
technology for convenient login, and many more which has positioned it in the
global market.
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iii. Transfer Rate of Technology
Earlier, it used to take more than one year for any new technology to come in
the market after getting developed inside the laboratory. But now, with the
intervention of the ready to use technologies and increased adaptability, this
transfer rate (from lab to field) got reduced to only 3 to 4 months.
iv. Patent Protection
After the Copyright Act 1957 was implemented, Intellectual Property Right
regime has covered the innovative world with patent protection.
STRUCTURAL AND REGULATORY REFORMS
Following regulatory reforms have come into picture as far as PC industry
is concerned:-
Information Technology Act 2008(Amended).
National cyber security.
To prevent video voyeurism.
Indian Computer Emergency Response Team (CERT) has been
designed.
FUTURE OF INDIAN PC INDUSTRY
Measured by the age of many industries, the PC industry in India is still in its infancy.
Yet, its growth and development has caught the attention of the world market so much
that India is now being identified as the major powerhouse for incremental
development of computers. The reason for this attention is not the actual size of the
industry but its rapid growth rate during the 1990s, its growth rate in first decade of
2000 and the projected growth rate in the upcoming decades.
As the socio-economic condition in India is developing, the PC Industry is bound to
gain momentum because India is on the path of becoming the „knowledge hub of the
world‟ in this century and this can not be possible without computers. So, Indian PC
market is bound to grow at a very stunning rate.
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COMPANY PROFILE: LENOVO
BACKGROUND
YEARS EVENTS
1981 IBM PCD introduces its first personal computer, the IBM PC.
1984 IBM PCD introduces its first portable computer, the IBM Portable PC, weighing 30
pounds. With an initial capital outlay of only RMB200,000, (US$25,000) Lenovo‟s
founding chairman Liu Chuanzhi, together with 10 like-minded colleagues, launches the
New Technology Developer Inc. (the predecessor of the Legend Group) funded by the
Chinese Academy of Sciences.
1986 IBM PCD announces its first laptop computer, the PC Convertible, weighing 12 pounds.
1987 IBM PCD announces the Personal System/2 personal computer. Legend successfully rolls
out the Legend Chinese-character card.
1988 Legend‟s Chinese-character card receives the highest National Science-Technology
Progress Award in China. Legend Hong Kong is established.
1989 IBM PCD announces the Personal System/2 personal computer.
1990 The very first Legend PC is launched in the market. Legend changes its role from that of
an agent for imported computer products into a producer and seller of its own branded
computer products. Legend PCs are ratified and accepted by the China Torch Program.
1992 IBM PCD introduces ThinkPad, the industry‟s first notebook with a 10.4 inch color Thin
Film Transistor (TFT) display and a Track Point (red ball) pointing device.
Legend pioneers the home PC concept and Legend 1 + 1 home PCs enter the Chinese
marketplace.
1993 Legend enters the Pentium era, producing China‟s first "586" PC. Legend establishes 1+1
retail network.
1994 IBM PCD introduces the industry‟s first notebook with integrated CD-ROM, the
ThinkPad 755CD. Legend is listed on the Hong Kong Stock Exchange. The Legend PC
business division is formally established.
1995 IBM PCD introduces the “butterfly” keyboard. IBM PCD moves from Boca Raton,
Florida, to Raleigh, North Carolina. Legend introduces the first Legend-brand server.
1996 Legend becomes the market share leader in China for the first time. Legend
introduces the first Legend brand laptop.
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1997
IBM PCD introduces the industry‟s first notebook equipped with a DVD-ROM, the
ThinkPad 770. Legend signs an Intellectual Property agreement with Microsoft, the most
valuable deal ever made in China at the time. Legend launches the first multi-function
laser printer.
1998 IBM PCD introduces the industry‟s first Think Light, a small light that illuminates the
keyboard in low light work environments, such as onboard an airplane. The millionth
Legend PC comes off the production line. Intel Chairman Andy Grove attends the
ceremony and takes the PC for Intel‟s museum collection. Legend establishes the first
Legend Shop.
1999 IBM PCD introduces the industry‟s first mini-notebook, weighing, under three pounds,
with standard ports and a keyboard that is 95 percent of full-size. IBM PCD announces its
exit from the retail business. IBM PCD introduces the industry‟s first PC with an embedded
security chip.
Legend becomes the top PC vendor in the Asia-Pacific region and heads the Chinese
national Top 100 Electronic Enterprises ranking. Legend launches pioneering Internet PC,
with its "one-touch-to-the-net" feature, which enables millions of Chinese PC users to
easily access the Internet.
2000 IBM PCD ships its 10-millionth ThinkPad notebook PC. Legend becomes a constituent
stock of the Hang Seng Index - HK. Legend ranked in top 10 of world's best managed
PC venders.
2001 An IBM notebook with an embedded security chip becomes the industry‟s first notebook to
be certified by the trusted Computing Platform Alliance, an industry body setting data
security standards.
Legend successfully spins off Digital China Co. Ltd., which is separately listed on the Hong
Kong Stock Exchange. Legend appoints Yuanqing Yang President and CEO. Legend
first introduces "digital home" concept and launches accessories-enabling PC.
2002 IBM PCD introduces Image Ultra and Rapid Restore, the first automatic data recovery
technologies of their kind. IBM PCD announces desktop PC outsourcing pact with
Sanmina-SCI.
Legend launches its first technological innovation convention, “Legend World 2002,”
which opens up Legend‟s “Technology Era”. Legend introduces its visionary concept for
the future of technological development and applications, its Collaborating Applications
project, as well as its strategies for implementing Collaborating Applications. Legend‟s
supercomputer, the Deep Comp 1800 makes its debut. It is China‟s first computer with
1,000 GFLOP (floating point operations per second) and China‟s fastest computer for
civilian use, ranked 43rd in the Top 500 list of the world‟s fastest computers.
2003 IBM PCD introduces the industry‟s first notebook with an extended battery life of up to 11
hours. IBM PCD introduces its Think Centre desktop PC line. IBM PCD introduces its
Active Protection System, the industry‟s first notebook with an airbag for hard Drive and
data protection in case the system is dropped. IBM PCD ships its 20-millionth ThinkPad
notebook PC. IBM PCD introduces its Think Centre desktop PC line.
Legend announces the birth of its new "Lenovo" logo to prepare for its expansion into the
overseas market. Based on the collaborative application technology, Lenovo initiates IGRS
Working Group, in cooperation with a few large companies and the Chinese Ministry of the
Information Industry, to promote the formation of the industrial standard. Lenovo launches
a Tech Road Show 2003 nationwide to promote Lenovo's innovation. Lenovo successfully
develops Deep Comp 6800 in November 2003. It ranks 14th on the global list.
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2004
IBM PCD introduces the Think Centre ultra small desktop PC, no larger than a box of corn
flakes. IBM PCD introduces the first notebook with an integrated fingerprint reader.
IBM PCD ships its 100-millionth PC (counting both desktop and notebook computers).
Lenovo becomes an Olympic worldwide partner. It is the first Chinese company to become
a computer technology equipment partner of the IOC. Lenovo decides to develop the rural
market by launching the "Yuanmeng" PC series designed for township home users.
Lenovo and IBM announce an agreement by which Lenovo will acquire IBM‟s Personal
Computing division, its global PC (desktop and notebook computer) business. The
acquisition forms a top-tier (third-largest) global PC leader.
2005 Lenovo completes the acquisition of IBM's Personal Computing Division, making it a new
international IT competitor and the third-largest personal computer company in the
world. Lenovo announces the closing of a US$350 million strategic investment by three
leading private equity firms: Texas Pacific Group, General Atlantic LLC and Newbridge
Capital LLC. Lenovo introduces the industry's thinnest, lightest and most secure Tablet PC,
the ThinkPad X41 Tablet. Lenovo introduces the first widescreen ThinkPad with embedded
wireless WAN, the ThinkPad Z60, available for the first time with a titanium cover.
2006 Lenovo becomes the world's largest provider of biometric-enabled PCs by selling its one-
millionth PC with an integrated fingerprint reader. Lenovo technology flawlessly supports
the 2006 Olympic Winter Games in Torino, Italy, supplying 5,000 desktop PCs, 350 servers
and 1,000 notebook computers. Lenovo also hosts seven Internet lounges for use by
Olympic athletes and visitors.
2007 William J. Amelia is appointed as CEO and President of Lenovo.
2008 Lenovo introduces the first dual-core ThinkPad notebook PCs, improving productivity
and extending battery life for up to 11 hours.
2009 The first Lenovo-branded products outside of China debut worldwide. Researchers,
scientists and product design teams from around the world combine Lenovo's heritage in
enterprise and consumer PC technology to design the Lenovo 3000 product line, which
features new desktop and notebook models specifically designed to provide worry-free
computing to the small business market segment.
VISION OF LENOVO
At Lenovo, their vision is to be a company respected for the remarkable contributions
they will make to society through the advancement of technology, business practices
and their role in protecting the environment … and respected by their people for the
career and financial opportunities they will find, as well as the personal satisfaction for
helping bring about these remarkable achievements.
This vision guides how they think, how they work, and how they interact with their
customers, suppliers and colleagues.
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MISSION OF LENOVO
To become the new leader in the world of computers
LENOVO = LE + NOVO
LE means Leader, NOVO means new.
So, LENOVO is the new leader.
CULTURE @ LENOVO
Their culture defines them … it‟s their DNA. It‟s the values they share and the
business practices they deploy. Their culture is what has enabled them to consistently
raise the bar on delivering break-through innovations and award-winning designs.
They are dedicated to the satisfaction and success of every customer. They pursue
innovation and deliver the products and services that matter to their customers with
speed and efficiency. They strive for trust, honesty and personal responsibility in all
relationships. And they seek to work collaboratively, respect and value our differences,
and enjoy the opportunity to work across cultures.
OBJECTIVES OF LENOVO
o To provide the computing solutions with an ease at affordable price.
o To work as a catalyst to bring about institutional improvement in streaming the functions
of PC business.
o To mobilize various types of resources viz. domestic and international.
o To strive for up gradation of skill in PC sector for efficient and effective growth of the
company.
o To maximize the rate of return through efficient operations and introduction of
innovative environment friendly Desktops and Laptops and services in PC sector.
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Lenovo is dedicated to building the world's most innovative personal computers. Their
business model is built on innovation, operational efficiency and customer satisfaction,
with a focus on investment in emerging markets. With major research centers in Yamato,
Japan; Beijing, Shanghai and Shenzhen, China, and Raleigh, North Carolina, Lenovo is a
global company with a local presence. They are creating a culture where people achieve
their highest potential and deliver extraordinary results. No matter how large they grow,
they will pursue innovative, creative people; relationships that are respectful; leaders who
inspire, and meaningful work.
Lenovo: - New world, new thinking.
AWARDS AND ACHIEVEMENTS WON BY LENOVO
„Best of the best for highest design quality Award‟ from the prestigious German
Design Institute on Nov. 30, 2005. „High Design Quality Award‟ for 180
0 adjustable display from prestigious German
Design Institute on Nov. 30, 2005.
International Business Week Design Award 2008.
PC WORLD- a leading PC magazine ranked the Lenovo Desktop as-
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PERFORMANCE HIGHLIGHTS: 2009-10
The company expects to realize savings of approximately $300 million in the
2009/2010 fiscal year (ending March 31, 2010).
The company had a pre-tax restructuring charge of approximately $150 million, most
of which was taken in the fourth fiscal quarter (ending March 31, 2009).
The Global crisis forces Lenovo to cut 11% of its workforce.
Lenovo XP 7 STYLE 2010 SATA is the most beautiful and modern Windows XP
like exactly Windows 7, it based on original copy of XP SP3 (Activated) include
Windows Media Player 11, Internet Explorer 8 and SATA Drivers.
The system has been modified in a professional manner combined the high
performance and the wonderful appearance more beautiful from Window 7; you will
feel that you already work in Windows 7. Lenovo XP 7 STYLE 2010 has more power
because it has been updated completely with the latest updates and security hot fixes
till November 2009 addition to the last version of DirectX. This makes it become very
stable, fast and safe when the normal work or browsing of the internet will be faster
and safe from hacker attacks, viruses, etc. When playing, the games will be speedy,
stable and with high graphics. The system has full components; everything is staying
(Services, Drivers, Languages ... etc.). Lenovo XP 7 STYLE 2010 SATA is fully
compatible to work with any PC- Laptop or Desktop.
Windows Lenovo XP 7 STYLE 2010 (with SATA Support) [RE PACKED] | 651 MB
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RECOGNITIONS:-
EPEAT Gold Standards for Think Pads (Responsible for environment-friendly
product).
NYSE (New York Stock Exchange) enlisted company.
Fortune-500 enlisted company.
Green-guard certified (Air Quality Certification).
Many Think station models are „Energy Star 5.0‟ certified.
EPEAT Silver Rated for Think Centre Models.
NVIDIA Quadro FX MXM Certification for graphic solution.
WUXGA certification for better resolution.
MAJOR PRODUCTS OF LENOVO:-
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CURRENT MANAGEMENT TEAM:-
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CLIENTS OF LENOVO:-
MICHAEL PORTER‟S FIVE FORCES MODEL:-
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Threat of New Entrants
Wipro.
Samsung.
Chirag.
Threat of Substitute Products
Verbal communication.
Hand written
Communication.
Type writer.
Windows mobile.
Video recording.
Telephone.
Conferencing machine.
Camera.
Sound Systems.
Suppliers
Intel (Micro-processor)
Microsoft (OS)
Buyers
Big Corporates
Government Offices
Educational Institutes
BPOs
Individual Customers
Competitive Rivalries
HCL
HP
Compaq
Dell
Acer
Toshiba
Zenith
Sahara
LG
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TOWS MATRIX ANALYSIS;-
Strengths Weaknesses
1. Growing market share
2. Direct sales approach
3. Build to Order approach
4. Long term partnerships with reputable
suppliers of name-brand parts and
components
5. Reputation/image of IBM
6. Lenovo Exchange
7. JIT, know-how and capabilities
8. Contracts with local service providers
to handle customer requests for repairs
9. Environmental policy
1. Lacks the product line and
service breadth of Hewlett
Packard and Dell
2. The direct sales approach is
not the preferred distribution
channel in Europe
3. No in-house repair service
capabilities
4. No in direct service, hence
lacks customer contact
Opportunities S-O Strategies W-O Strategies
1. Customers value convenience and
one stop shopping
2. Customers know what they want and
need to purchase
3. Marketing on the Internet
4. Need for replacement equipment
from World Trade Center Attack
5. US PC households with Internet
access will increase 25% by 2002
6. Some rivals weak in PCs in all the
world‟s major markets
7. Servers market can be tapped
1. Conduct aggressive domestic /
international advertising campaign.
(S1, S2, S3, S5, O1, O2, O3, O5, O6,
O7)
1. Joint Venture with EMC to
offer storage services.
(W1, O1, O4, O6, O7)
2. Open two Dell outlet stores
in Europe (W2, W3, O6)
Threats S-T Strategies W-T Strategies
1. Global economic recession
2. Aggressive pricing wars
3. Continuously changing consumer
demands.
4. Strong brand name of competitors
(IBM, HP)
5. Rapid technological advancement
6. A long-term slow down in global
sales of PC‟s and servers
7. Corporate customers relying more
and more heavily on the systems and
service capabilities that IBM and HP
provide
1. Produce low price standardized PC.
(T2, S1, S2, S4, S5, S7)
2. Reduce workforce by 1700 employees
to cut costs
(T1, T2, S2, S3, S4, S7, T6)
1. Conduct aggressive
European ad campaign to
promote Dell Direct Selling
(W2, T3, T2)
29
SWOT ANALYSIS
In order to get a better sense for Lenovo‟s outlook in terms of the corporate market
and the impending loss of the IBM branding, it is helpful to analyze the company‟s
strengths, weaknesses, opportunities and threats in terms of the problem. These key
parameters are summarized here.
Strengths
Lenovo‟s major strengths lie in its current brand image and market share.
On the international scale, Lenovo ranks third in corporate sales behind
Hewlett-Packard and Dell.
It shows tremendous capability for improvement, however, due to its clearly
superior reputation for high quality, high end products inherited from IBM.
In addition, executives maintained from IBM‟s notebook division provide the
valuable experience that a relatively new foreign player normally would not
have in the corporate (especially US) market.
Lenovo already has a strong base in China, with a 29% share of China‟s
PC market. There is limited competition for existing IBM/Lenovo
corporate customers, because of existing reputation and connections
formed by transferred IBM staff.
The historic brand image and continuing innovation in the high-end market
makes products like the ThinkPad X300 a “must-have” for a CEO to show off
and use. The strength here lies in the capability for creativity in producing a
high-end product with all the bells and whistles necessary for a corporate
executive.
Lenovo provides a highly versatile notebook product line, in addition to its
high-end ThinkPad. As a “one-stop shop” company, Lenovo shows promise –
its product lines covers mid to high end products, now supporting Linux
products. In addition, in-house manufacturing specialization allows for lower
marginal costs – this leads to a more competitive position for a price war.
30
Weaknesses
Since Lenovo is a new player in the international stage it has plenty of
weaknesses in its outlook.
In general, its team has less market knowledge than local experienced players
in the US market like HP and Dell.
Lenovo has just begun to develop its service team in the US – it still manages to
provide top of the line customer service, but the system is not optimized.
Lenovo‟s major weakness, however, is in the stigma associated with
Chinese products and companies with a reputation for skimping on quality
to achieve low costs.
A customer in the states is likely to mistrust the Lenovo brand in favor of the
more well known and trustworthy, American IBM logo. It is this weakness that
Lenovo must overcome in the next year as the IBM branding has disappeared
from its products.
Opportunities
With low marginal costs and a wide product spectrum, Lenovo has the
opportunity to become an „on stop powerhouse‟ in the corporate market,
providing high-end executive computers with the IBM ThinkPad line, and high-
quality, middle-spectrum computers for lower level employees on the corporate
ladder.
In addition, a developed electronics department allows Lenovo the opportunity
for creating synergies between corporate add-ons like cell phones and Pocket
PCs.
Threats
In general, the weakness of the US economy and the dropping value of the
dollar might pose a threat to Lenovo‟s growth.
Rivalry between Lenovo and other companies in the corporate market like HP
and Dell already pose a significant challenge, but Apple is showing a growing
strength in the corporate market that must be addressed as Lenovo seeks to
become the dominant international corporate player.
31
STRATEGIC ANALYSIS:
a) COMPETITOR‟S STRATEGIES:-
Dell Inc.
In 2007, Dell had a $60 billion global business with a customer base and an installed
base of more than 200 million units. Dell‟s major strengths lie in its direct order
business model and in its current power in the market; with close to $10 billion in
cash and about $1 billion a quarter in cash flow Dell is a world-renowned brand and is
currently the number one choice of enterprises around the world. These features are
ideal for marketing low and middle spectrum computers to companies, a strategy that
has resulted in Dell‟s success.
Dell‟s weaknesses, however, also lie in this direct order business model. Customers
have no physical sense for the product they‟re buying, resulting in dissatisfaction with
the often clunky, utilitarian look of new Dell products. It is this aspect that makes
Dell‟ attempt at “high-end” computers susceptible to the ThinkPad brand – Dell‟s
computers lack both the reputation and quality (number of features and reliability) that
IBM‟s ThinkPad came to epitomize.
In recent years, Dell has attempted to capture the minds of IT professionals at
corporations by providing services for data management, even though it seems to
have been slow to react to demand.
Hewlett-Packard Co.
HP‟s major strengths in the notebook market lie in its overall size and power as a
company. Its dominance in the printer market and general knowledge of marketing
and sales in the IT market should give it an advantage in developing complements,
brand images. Compared to other companies, however, HP has been noted as weak in
marketing, distribution speed, and costs. HP attempts to provide the latest technology
available by keeping inventory low and making large orders as they come – as a
result, their costs are higher on average than their competitors for production of
similar quality products.
HP‟s strategies in recent years have included the acquisition of struggling
computer giant Compaq, making HP the largest consumer hardware company in
the world. They have attempted to maintain and expand their market power by
expanding into new markets (especially newly growing Asian markets) lobbying and
working with other multinational corporations, NGOs, and governments to enhance
their competitiveness both in the US and abroad, claiming in one of their press-
releases to be “supporting free market economies.”
32
Recently, HP announced plans to expand its operations to cover retail and
manufacturing in over six-hundred Chinese Cities. HP‟s most successful strategy in
recent years has involved the interfacing of HP notebooks and computers with HP
server systems through use of heavily marketed efficiency software that also is
advertised to provide convenient tools for financial management and leadership. HP
has also invested heavily in stylish ergonomics, following Apple‟s cue.
Apple Computer Inc.
Apple is an established and healthy IT brand in the international market today, with a
loyal set of enthusiastic customers who advocate their brand strongly. Apple‟s
strengths in the consumer market have begun to seep into the corporate world. Apple
makes use of their favorable brand perception for style, safety, and ease of use.
Apple has been intelligent about providing solid technical support on which Lenovo‟s
current system is modeled.
Apple‟s weaknesses in the corporate market lie in a reputation as a consumer product,
filled with flashy multimedia applications that slow down the computer and are
unnecessary for an executive‟s business computer, and counterproductive for lower
level staff. The Apple system is still not optimized for use with the Windows
operating system and is thus not as easily used with the majority of applications
published today. Most importantly, Apple has yet to penetrate the corporate market
significantly. Current barriers to entry put up by Lenovo, HP and Dell may prevent
Apple from taking a significant bite out of the current market.
b) RESPONSES AND COMPETITION FOR LENOVO:-
Product Differentiation: Wider Quality Spectrum
Lenovo has the opportunity to provide a broad spectrum of services to the corporate
market. With a reasonably high-quality, low cost series of computers in the Lenovo
3000 line, Lenovo can attack the same niche in the corporate market that allows
Dell more than 50% of the market share: providing not only high-end notebooks
and computers for executives, but also mid-spectrum machines for non-executives;
people who don‟t need to use the top of the line ThinkPad. In doing so, Lenovo has
the potential to become a “one-stop shop” in the corporate market.
33
At the same time, however, Lenovo needs to continue to focus on providing the most
features in their high-end machines, ensuring that they maintain the reputation that the
high-end ThinkPad series has built. An executive purchasing a computer is less likely
to worry about a hundred dollar difference in prices than about the number of features
a computer provides. Apple‟s response to Lenovo‟s top-end products seems to have
been to provide a lower cost product on purpose (undercutting) but only by skimping
on quality. The Mac book Air, for instance, is intentionally priced at $100 less than
the similarly lightweight, but more feature-intensive ThinkPad X300.
Since Lenovo‟ target is the corporate, rather than individual consumers this should be
to our benefit. A worst case scenario in response to this suggested attack of the mid-
spectrum market results in a price war for this market.
This is difficult to avoid – by minimizing marginal costs, Lenovo can hope to “win”
the price war and hurt its competitors in the process. Lenovo‟s in-house
manufacturing expertise will serve to give them the upper hand against a company
like Dell in providing to the less-than-high-end corporate need. It is this advantage in
marginal costs and the existence of Lenovo‟s lower end 3000 line computers that
makes this attack a wise choice. Complements to Compete with Apple and HP.
HP and Apple have begun to demonstrate success in the marketing of complements in
server interfacing technology and efficiency equipment, respectively, in the corporate
market. It is likely, however, that if Lenovo were to partner with IBM to produce a
complement with IBM server technology, both companies would stand to gain:
while it is not in IBM‟s interest to make their servers solely compatible with Lenovo
products, cooperation to optimize interfacing makes both products more desirable for
customers.
HP demonstrated that the software interfacing they introduced for their server systems
increased productivity and popularity of their product in the corporate market. This
same model, if applied to IBM-Lenovo cooperation, might result in both continued
positive brand identification for Lenovo, and an increase in popularity for both
products – IBM already has a significant brand name for its server technology, on
which Lenovo would likely be riding. While it is a much vaguer suggestion, Lenovo
should also attempt to use their significant base as an electronics manufacturer and
retailer to develop complements to their products that appeal to executives, modeling
efforts after the ease with which Apple‟s i-Phone interfaces with Apple computers.
In both these instances, we must hope that Lenovo‟s complement is more attractive or
cheaper to executives than competing products – otherwise, such attempts are likely to
fail to a similar extent that HP and Dell attempts at products like PDAs have failed.
34
c) CURRENTLY SUCCESSFUL STRATEGIES:-
Marketing
There are two main focuses for marketing to the corporate market, both seeking to
address the major concerns of corporations in computer purchases: functionality and
need for service. These are addressed through the relationship model and transaction
model for marketing. The relationship model involves retaining customers with
continuous innovative products and satisfying customer service – by maintaining a
solid customer base and providing them with consistent quality and support, Lenovo
will build a reputation that will earn it more customers. IBM consistently did this in the
past, so Lenovo‟s first concern is maintaining the same standard of quality,
innovation and service that IBM provided.
The transaction model involves making new business deals by spreading to new
potential markets. In this sense, Lenovo uses China as its base for expansion,
capitalizing on the low cost of manufacturing as well as the fast-growing market which
allows the company to create enough revenue to support development in markets
around the world. While companies such as Dell and Hewlett-Packard are trying to
penetrate the Chinese market, Lenovo is trying to break into the international market
out of an established base in the wide Chinese market.
Management
Lenovo‟s major move to provide proper organized and experienced, involved hiring a
large number of IBM‟s former notebook executives in order to transfer the culture and
structure of IBM in their company. Chairman Liu Chuanzhi is known for having a
thorough approach to decision making. His management team studies other leading
firms and reads foreign management journals. There is a strong commitment to
learning and copying successful techniques within the company that should lead to a
versatile company in future climates.
IBM Branding
Lenovo has made full use of the IBM name, barely associating itself with the IBM
product until very recently. This may have set them up for failure once their rights to
the IBM title expire at the end of this year and they lose their brand recognition, but
while it was used, the IBM name helped Lenovo maintain its solid base with customers
in the corporate market. Recently, Lenovo has emphasized the brands “ThinkPad”
and “Idea Pad”, establishing these as the definition in high-end products, separating
them from the IBM name as much as possible. Once Lenovo can no longer brand their
product with the IBM name, they may depend instead on recognition of the ThinkPad
and Idea Pad.
35
Customer Awareness
Lenovo makes an effort to make sure that the Lenovo brand is well known and trusted
as it continues to grow and produce computers in the international market on their own
name. Co-branding, where two companies work together to create marketing synergy,
can be used to great effect here – Lenovo‟s sponsorship of the Winter Olympics in
Turin and the Summer Olympics in Beijing have served to continue to establish the
Lenovo name as one that is trusted in general, just as the IBM name was.
FINANCIAL POSITION (2009-2010):-
EPS-EBIT Analysis
Amount Needed: $1,000
Stock Price $23
EBIT Range $2000 to $3000
Tax Rate 485/1731 = 28%
Interest Rate 5%
Shares Outstanding 2,600
Common Stock Financing Debt Financing
High Low High Low EBIT ($1,789 in 2001)
Interest (5%)
EBT
Taxes 28%
EAT
Shares Outstanding
EPS
$3000
0
3000
840
2160
2643
.817
$2000
0
2000
560
1440
2643
.545
$3000
50
2950
826
2124
2600
.816
$2000
50
1950
546
1404
2600
.540
LENOVO
Computers Industry Sector
S and P
500
Valuation Ratios
P/E Ratio (TTM) 49.65 29.93 37.84 25.25
P/E High - Last 5
Yrs 105.71 44.40 66.10 49.79
P/E Low - Last 5
Yrs 21.29 17.78 19.59 17.38
Beta 2.04 1.60 1.76 1.00
36
Price to Sales (TTM) 1.95 1.40 4.05 2.67
Price to Book
(MRQ) 13.08 6.12 3.92 4.19
Price to Tangible
Book (MRQ) 13.07 6.36 4.98 6.59
Price to Cash Flow
(TTM) 41.59 18.93 25.27 17.38
Price to Free Cash
Flow (TTM) 49.65 29.93 37.84 25.25
% Owned
Institutions 105.71 44.40 66.10 49.79
Dividends
Dividend Yield 0.00 1.30 1.03 2.28
Dividend Yield - 5
Yr Avg 0.00 0.42 0.24 1.36
Dividend 5 Yr
Growth Rate NM 6.77 6.24 7.92
Payout Ratio (TTM) 0.00 18.90 9.42 29.67
Growth Rates %
Sales (MRQ) vs Qtr
1 Yr Ago -8.97 -6.99 -2.04 0.81
Sales (TTM) vs
TTM 1 Yr Ago -12.17 -10.05 -4.63 1.66
Sales - 5 Yr Growth
Rate 3.32 10.78 20.73 11.89
EPS (MRQ) vs Qtr 1
Yr Ago 577.78 -50.05 -2.90 10.50
EPS (TTM) vs TTM
1 Yr Ago -60.15 -39.87 -23.06 0.51
EPS - 5 Yr Growth
Rate -23.41 8.18 9.94 8.46
Capital Spending - 5
Yr Growth Rate -7.05 -0.70 13.35 9.96
37
Financial Strength
Quick Ratio (MRQ) 0.85 1.03 2.37 1.12
Current Ratio
(MRQ) 1.06 1.39 2.91 1.65
LT Debt to Equity
(MRQ) 0.12 0.45 0.26 0.68
Total Debt to Equity
(MRQ) 0.12 0.64 0.35 1.04
Interest Coverage
(TTM) NM 36.19 11.26 9.36
Profitability Ratios
%
Gross Margin
(TTM) 17.47 30.01 48.52 46.90
Gross Margin - 5 Yr
Avg. 20.62 31.72 51.88 48.17
EBITD Margin
(TTM) 6.46 9.65 15.28 20.02
EBITD - 5 Yr Avg 9.64 13.11 21.95 21.84
Operating Margin
(TTM) 5.74 6.05 9.65 17.19
Operating Margin -
5 Yr Avg 8.99 9.13 16.02 18.11
Pre-Tax Margin
(TTM) 5.52 7.29 10.89 14.62
Pre-Tax Margin - 5
Yr Avg 9.56 10.18 19.06 17.04
Net Profit Margin
(TTM) 3.98 4.28 5.54 9.62
Net Profit Margin -
5 Yr Avg 6.65 7.01 11.76 11.20
Effective Tax Rate
(TTM) 27.97 28.17 30.95 33.25
Effective Tax Rate -
5 Yr Avg 30.20 29.81 34.06 35.69
38
OBJECTIVE OF THE PROJECT
To study the feasibility of Notebooks against Desktops
RESEARCH LAYOUT
Project Flow Diagram
Behavioral
Model
Other
Requirements
Information
Need
Information
Source
Questionnaire Design
Designing
Evaluation
Completion
Data
Collection
Analysis
Correction
39
RESEARCH DESIGN
The research design is the master plan specifying the methods and procedures for
collecting and analyzing the needed information.
TYPES OF RESEARCH DESIGN
Three categories of research design-
Exploratory
Descriptive
Causal
Exploratory Research Design
Exploratory research is most commonly unstructured, “informal” research that is
undertaken to gain background information about the general nature of the research
problem. This research conducted when the researcher does not know much about the
problem and needs additional information or desires new or more recent information.
Descriptive Research Design
Descriptive research is undertaken to provide answers to the questions of who, what,
where, when and how, but not why.
Two basic classifications of this research are -
Cross-Sectional Studies- It measures units from a sample of the population at only
one point in time. Sample surveys are cross-sectional studies whose samples are
drawn in such a way as to be representative of a specific population.
Longitudinal Studies- It repeatedly draws sample units of a population over time.
Longitudinal data used for market-tracking, brand-switching, attitude and image
checking, etc.
Causal Research Design
Causal is thought of as understanding a phenomenon in terms of conditional
statements of the form, if x then y; basically, causal research design measures cause
and effect between two or more products or things.
40
DATA COLLECTION METHOD
In the survey we have used following data collection methods –
Secondary data Analysis-
Secondary data are those that have been collected for some other purpose, as from our
library, internet, journals and magazines etc. Secondary data includes both internal
and external data.
Internal secondary data consists of such information as data generated in-house as
well as analysis of customer files, such as past customer transactions, letters from
customers, sells call reports. In research we have collected internal data from
LENOVO INDIA PVT. LTD. GURGAON and Several service centers of LENOVO.
External secondary data consists of any data collected by an outside organization.
An excellent way to access selected parts of these data is through websites,
magazines, and blogs. We collected these kinds of data from www.acnielson.com,
www.lenovo.com, www.wikipedia.com, Forbes, Harvard Business Review, etc.
Primary data Analysis-
Primary data refers to information gathered by the researcher specifically for the
research project at hand.
In primary data analysis, we use three techniques-
Quantitative research Designs-
A quantitative research study consists of a research design, the data collection
methods and instruments to be used, and the sample design.
Four basic designs are used in quantitative research, viz.
Observation methods,
Mechanical methods,
Experimentation methods, and
Surveys Methods.
In research project we have used „‟Surveys Methods.‟‟ Survey methods means a
researcher wishes to ask consumers about their purchase preferences and consumption
experiences. The researcher takes personal interviews, telephone surveys, online
surveys and mail surveys.
41
In research we have used these surveys-
Personal interview surveys- Colleges, Malls, Retail shops, corporate, students, etc.
Telephone surveys
Online surveys conducted by sending questionnaire to different respondents.
Quantitative data collection instruments include-
Questionnaires,
Personal interviews and
E-mails.
We have used prominently questionnaire instrument in quantitative methods.
Qualitative research Designs
The key data collection techniques for qualitative data collection methods are-
Depth interviews,
Focus groups discussion guides,
Projective techniques and
Metaphor analysis.
In this research, we have used the following methods-
Structured interview (direct to customer), and
Customers‟ personal opinions about notebooks/desktops.
Customer satisfaction measurement
Customer satisfaction surveys measure how satisfied the customers are with relevant
attributes of the product or service and the relative importance of these attributes.
In our survey, we have used the following customer satisfaction methods through
questionnaire-
How much customers are satisfied with quality of Lenovo‟s products?
What change is required in the Notebooks and Desktops?
What are the preferable choices of customers?
42
NEED FOR INFORMATION
To know about the feasibility of the Notebooks against Desktops, we had to collect
the information from various sources at various places and we had to make sure that
every segment of the computer users, be it the educational institutes or the corporate,
or malls, or even individual customers, must be reached so that we can analyze the
behavioral pattern of the consumer in a better way.
To know the consumers‟ desire, we had to know about their budget and conduct their
respective demographic segmentation. As we all know that educational institutes are
more valuable (customers) as far as Notebooks are concerned because they need it
every year in bulk, so we have given more attention on these educational institutes,
basically B-Schools.
While on one hand B-Schools prefer Notebooks as a means of education, on the other
BPOs concentrate on Desktops to carry out their business. So, our next target was to
conduct our surveys in these BPOs.
We were interested to know the following things-
What do they prefer- Desktop or Notebook?
Why do they prefer this?
Satisfaction level with their computer.
What else do they look for?
Their budget.
Post purchase behavior (Dissonance, if any).
Potential customers.
Brand priority in customers‟ point of view.
Market share of LENOVO.
SOURCES OF INFORMATION
In order to receive the required information, we extracted the data from the following
sources-
1. B- Schools in Delhi-NCR,
2. BPOs at Gurgaon,
3. Malls in Delhi NCR, and
4. From students.
43
To know the exact and relevant data we conducted our research at various places, few
of them are enlisted below-
1. Reckitt Benckiser,
2. Agilis International,
3. Saubhagya Media Pvt. Ltd.,
4. ITS, Ghaziabad,
5. NDIM, Tughlakhabad, New Delhi,
6. Centner Institute of Management and Communication, Noida,
7. Jamiya Miliya Islamiya Univesity, New Delhi,
8. Sparsh India Ltd. Udyog Vihar III, Gurgaon,
9. Genpact, Gurgaon,
10. Ansal Plaza, Greater Noida,
11. GIP, Sector 18, Noida,
12. TDI Mall, Rajouri Garden, New Delhi, etc.
SAMPLE PLAN AND SAMPLE SIZE For our project, we decided to prepare a questionnaire which will cover all important
parts of the survey to know the feasibility of the Notebooks against the Desktops.
We also decided to choose our respondents from different colleges of different areas,
BPOs and malls (as they are bulk purchasers) and finally, in order to know the
individual customers‟ response, we approached the college students as well.
We had taken the response of at least 100 respondents, so our project sample size is
100 and we analyzed all things on the basis of those 100 responses.
Sample distribution was as under:
Educational Institutions = 30 samples
Individual users = 30 samples
BPOs = 30 samples
Malls = 10 samples
44
RESEARCH METHODS
Field work
We visited across the Delhi – NCR in various colleges, malls, corporate etc. It was a
very great experience to visit all those places. At some of those places, we were
warmly welcomed, but at some other places we were treated very rudely.
Probing
Probing the respondents was a great experience, though we met 100s of respondents
but to meet and to probe the Lab-in-charge of ITS, Greater Noida was really a very
good experience as she was responding very gently.
Recording the response
As we were working as a team of two members, one of us was made responsible for
interrogating the respondents while at the same time the other one used to pen down
those responses.
RESEARCH INSTRUMENT
QUESTIONNAIRE
Dear Sir/Ma‟am,
We the management trainee at LENOVO INDIA PVT LTD. are conducting a survey
to understand the current market trends in the field of Personal Computing as a part of
our Business Research. The purpose of this activity is to know your desire better in
order to serve you better.
Kindly extent your cooperation by filling up this questionnaire and enable us to
conduct the research successfully.
45
1. You own
Notebook
Desktop
Both
None
FOR NOTEBOOK USERS:-
2 Which brand do you own?
Lenovo
HP
Dell
HCL
Acer
Zenith
Compaq
Any other (Please specify)____________________________
3 Which model do you possess?
Guidelines
Question no. 1 is compulsory.
Questionnaire has been divided into two sections (Section-A and Section-B).
Section- A (Question no. 2 to 21) is for Notebook users.
Section -B (Question no. 22 to 34) is for Desktop users.
All questions are of multiple choices, in nature.
Note
Any information provided by you is assured to be kept fully confidential.
46
4 How many Notebooks you possess? (approx.) [ Only for Enterprise Customers]
<50.
51-150.
151-250.
251-350.
> 350.
5 Since how many years have you been using your particular brand?
<5 years.
5 – 10 years.
> 10 years.
6 Specify the reasons of owning a Notebook against a Desktop.
Price/Price-performance ratio.
Portability.
Wireless Connectivity.
Weight & Ergonomics.
Green Computing.
Thermal Efficiency.
Noise control Technology.
Ease of use and maintain.
Security.
Ruggedness & Reliability.
Battery Backup.
Compactness.
Aesthetic features.
Any Other (please specify)___________________________
7 How much distance (both ways) you use to cover with your Notebook in a day?
<20 KMS.
20-40 KMS.
40-60 KMS.
60-80 KMS.
>80 KMS.
47
8 How much comfort do you feel while carrying your Notebook?
9 Is your organization facilitated with WLAN/LAN/INTERNET?
Yes
No
If yes, which type of problem(s) you face the most?
Connectivity problem.
Switch problem.
Driver problem.
Any other, please specify_______________________________
10 What features would you like to add in your Notebook?
Light -weight System.
Whole day battery life (10-12 hrs).
Ultra-thin model.
Wide-screen Display.
Outdoor Visibility.
Lowest-in-class Reflectivity.
Pen-proximity detection Technology.
Advanced Security systems.
State of the art communications and multimedia Technologies.
Web-cam.
Fashionable Carrying Cases.
Attractive aesthetics.
Any other, please specify___________________________________
11 What are the features that you feel of no use for you in your Notebook?
I. ________________________________
II. ________________________________
III. ________________________________
48
12 Do you face any kind of health related problem(s) with your Notebook?
Yes.
No.
If yes, which problem affects you the most?
Vision problem.
Stress.
Backache.
Any other, please specify___________________________________
13 How many hours do you work on your notebook in a day?
<3 hrs
3-6 hrs
6-9 hrs
>9 hrs
14 Which mode of maintenance you opt for your desktop?
AMC (Annual Maintenance Contract).
By self.
Enjoying on call facility.
Any other, please specify___________________________________
15 What is the average time period of service assistance you require for your Notebook?
<6 months.
6-12 months.
1-2 years.
>2 years.
16 How much are you satisfied by the services provided at our service centers?
Satisfied ____ ____ ____ ____ ____ Unsatisfied.
(Please tick mark at the appropriate place of your choice)
49
17 What are the security features in your Notebook?
One key rescue system for easy data recovery and back up.
Face recognition technology for convenient login.
Connectivity switch.
Fingerprint Reader.
Active Protection System.
Chassis Intrusion Switch.
PC Tracker.
Trusted Platform Module (Data Encryption).
Disable/enable capability of USB Ports.
Pre-boot Authentication.
Any other, please specify_____________________________.
18 What is the overall satisfaction level with your Notebook?
High Low
1 2 3 4 5 6 7
(Please tick mark at the appropriate place of your choice)
19 Your expectation(s) from the notebook?
50
20 Please tick your choice of preference on the basis of aesthetics (looks)?
21 Which feature(s) attracts you the most among the following:-
Ultra-thin (19mm X 337mm X 241mm).
Ultra-light weight (2-2.5 pounds).
1800 Flexibility.
Choice of Color.
Any other, please specify_____________________________________
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FOR DESKTOP USERS:-
22 Which brand you own?
Lenovo.
Acer.
Samsung.
LG.
HCL.
Compaq.
Any other (Please specify)_______________________________
23 Which model do you use?
24 How many Desktops you possess? (Approx) [Only for Enterprise Customers]
<50.
51-150.
151-250.
251-350.
> 350.
25 Since how many years have you been using your particular brand?
<5 years.
5 – 10 years.
> 10 years.
26 Specify the reasons of owning a Notebook against a Desktop?
Price.
Durability.
Maintainability.
Reliability.
Ease of use.
Security.
Performance.
Easy to upgrade.
Fast processing speed.
Any Other (please specify)_________________________________
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27 What is the „level of ease‟ in maintaining your desktop?
Very easily maintainable.
Easily maintainable.
Maintainable.
Difficult to maintain.
Very difficult to maintain.
28 Which mode of maintenance you opt for your desktop?
AMC (Annual Maintenance Contract).
By self.
Enjoying on call facility.
Any other, please specify_______________________________
29 What is the average time period of service assistance you require for your desktop?
Less than 6 months.
6-12 months.
1-2 years.
More than 2 years.
30 What specific facility in your desktop compels you to preferably work on it?
Wide screen.
Ease with typing.
Separate mouse.
Expandable hard disk.
Expandable RAM.
Multi-processor capability.
Fast processing speed.
Any other, please specify________________________________
31 What are the securities features in your Desktop?
I. ________________________________
II. ________________________________
III. ________________________________
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32 What is the overall satisfaction level with your Desktop?
High Low
1 2 3 4 5
(Please tick mark at the appropriate place of your choice)
33 Your expectation(s) from the Desktop?
34 Please tick your choice of preference on the basis of aesthetics (looks)?
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Something about You
Name of the Respondent : Mr. /Ms ______________________________
Organization‟s Name : _____________________________________
_____________________________________
Designation : _____________________________________
Address :
Contact Details
Ph
M
Fax
E-mail _____________________________________
Respondent‟s Signature
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OBSERVATION
Machine (Notebook/Desktop) model no.
No. of computers.
Satisfaction level (during conversation).
Scope for future demand (by knowing the batch strength in B schools, employees‟
strength in BPOs, footfalls in Malls, etc.)
E- Mail
In order to get the responses, we used to make email communications to some of our
colleagues and friends and thus got the desired responses.
Interview
We made a direct approach to various individuals in malls, IT/admin professionals at
various B- schools and respective concerned persons at several BPOs in the NCR
region.
DATA ANALYSIS
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57
58
59
60
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RESPONSES OF QUESTIONNAIRE
What do you own?
Notebook22%
Desktop41%
Both34%
None3%
Response
FOR NOTEBOOK USERS
Which brand you own?
LENOVO19%
HP12%
DELL14%HCL
10%
ACER7%
ZENITH6%
COMPAQ15%
OTHERS17%
Response
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How many Notebooks you possess? (Approx)
< 5050%
51 - 15016%
151-2508%
251-35015%
>35011%
Response
Specify the reasons of owning a Notebook against a Desktop?
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What features would you like to add in your Notebook?
Light -weight System
10%
Whole day battery life (10-12 hrs)
13%
Ultra-thin mode10%
Wide-screen Display
6%
Outdoor Visibility4%
Lowest-in-class Reflectivity
5%
Pen-proximity detection
Technology5%
State of the art communications and multimedia
Technologies7%
Web-cam10%
Fashionable Carrying Cases
10%
Attractive aesthetics
8%
Any other9%
Advanced Security systems
3%
Response
Do you face any kind of health related problem(s) with your Notebook?
Yes14%
No86%
Response
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Is there any major health problem(s) faced by you?
Vision problem33%
Stress41%
Backache13%
Any other13%
Response
How many hours do you work on your notebook in a day?
<3 h2%
3-6 hrs22%
6-9 hrs58%
>9 hrs18%
Response
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How much are you satisfied by the services provided at our service centers?
11%
231%
336%
426%
56%
Response
What is the mode of maintenance you opt for your computer?
AMC (Annual Maintenance
Contract)
60%
By self24%
Enjoying on call facility
10%
Any other6%
Response
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What are the security features in your Notebook?
One key rescue system for easy
data recovery and back up
11%
Face recognition technology for
convenient login4%
Connectivity switch10%
Fingerprint Reader2%
Active Protection System
8%
Chassis Intrusion Switch
3%PC Tracker.
4%
Trusted Platform Module (Data Encryption)
23%
Disable/enable capability of USB
Ports22%
Pre-boot Authentication
5% Any other8%
Response
What is the overall satisfaction level with your Notebook?
11%
231%
336%
426%
56%
Response
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Most popular model for Notebook?
0 5 10 15 20 25
m1
m2
m3
m4
m5
m6
m7
m8
m9
m10
Series 1
Series 1
Which feature(s) attracts the most?
Ultra-thin (19mm X 337mm X
241mm)
25%
Ultra-light weight (2-2.5 pounds)
32%
1800 Flexibility15%
Choice of Color20%
Any other8%
Response
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FOR DESKTOP USERS
Which brand do you own?
LENOVO8%
ACER12%
samsung10%
LG14%
HCL43%
COMPAQ4%
OTHERS9%
Response
Specify the reasons of owning a Desktop against a Notebook?
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What is the mode of maintenance you opt for your computer?
AMC (Annual Maintenance
Contract)
100%By self
0%
Enjoying on call facility
0%
Any other0%
Response
What specific facility in your desktop compels you to preferably work on
it?
Wide screen16%
Ease with typing14%
Separate mouse7%
Expandable hard disk
8%
Expandable RAM8%
Multi-processor capability
14%
Fast processing speed14%
Any other19%
Response
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What is the overall satisfaction level with your Notebook?
112%
268%
320%
40% 5
0%
Response
Most popular model for Notebook?
0 5 10 15 20 25
dm1
dm2
dm3
dm4
dm5
dm6
Series 1
Series 1
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CONCLUSION
With the help of this project, we reached at the result that for certain features
notebooks are feasible against desktops, while for others, the vice versa. As far as
individual buyers and B-schools are concerned, notebooks are the first choice; but
when it comes to offices, corporate, malls, etc.; desktops are preferred first.
During our survey, we found that the market penetration of LENOVO is quit low as
compared to its competitors like HCL and HP.
ALTERNATIVE SUGGESTIONS FOR LENOVO INDIA
PVT LTD
Some value engineering is required, like some of our respondents came up with an
idea of having FM with laptops.
The brand image of LENOVO is quiet low; and some steps like advertisement,
promotional schemes, etc. are required to create the same.
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RECOMMENDATIONS FOR LENOVO INDIA PVT LTD
Though THINKPAD is one of the best products of his segment, yet other models are
needed to be taken care of.
Positioning in Desktop is required.
In the contemporary world of hyper-competitive era, one cannot survive without brand
visibility and brand positioning. During our research, we found many respondents
who were not even aware of this brand, LENOVO. Hence, some major steps in this
regard, are needed to be taken.
It provides some black blonde models only, which is not acceptable in the current
market of youngsters; so, some thing is required to take care of if it comes to market
trends and aesthetic beauty.
LENOVO still focuses mainly on enterprise customers; but, to grab the attention of
the bottom of the pyramid, whish comprises more than 97% of the prospects (potential
customers), it needs to diversify itself horizontally.
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Marketing Management by Kotler & Keller
Strategic Management by Pearson
Marketing Research by Malhotra and Das
LENOVO Sales Kit
Economic survey 2009 - 2010
www.lenovo.com www.wikipedia.com www.investor.stockpoint.com
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