Lenovo Business Environment Analysis

Business Environments of Lenovo A firm’s business environments include both internal environment defined as a set of conditions such as strengths, resources, capabilities, etc., within the firm that affect the choices and use of strategies, and external environment that is defined as conditions outside the firm that affect the firm’s performance. Porter’s Five Forces spouses that the five forces jointly determine the strength of the firm’s competition and profitability. This is based on the idea that the attractiveness of a firm is determined by the intensity of the rivalry in the industry, the threat of potential new entrants, the threat of substitute products, the bargaining power of the suppliers and the bargaining power of the buyers.

Innovation is another core competence of the company. Its’ commitment to invest in innovation continues to pay off and prepares the company to excel with new form factors like the concept of a hybrid PC in 2010 before any company had significant tablet product in the market. Another core competence is its efficient, end-to-end business model. Lenovo’s dual business model, one that serves global, large enterprise customers through relationship model, and another that caters to small-to-medium businesses helps meet the unique needs to both segments – emphasizing customization and premium quality in

Parties of interests to this issue are Lenovo’s stakeholders. These include its capital market stakeholders like stockholders and investors, its product market stakeholders which includes customers, suppliers, regulators, and members of the communities in which it operates, as well as organizational stakeholders where everyone working on the company falls. When the media picks up the issue and a public sentiment is formed based on the information available to the stakeholders, an institution is informally