IBM:
Since 1990s, IBM has undergone a strategic transformation, and providing IT services to group customers has become a new profit growth point for IBM. In view of the aggressive pricing strategies of Dell and Hewlett-Packard on commercial desktops and laptops, the sales of IBM personal computers have been seriously affected. In 2002, IBM sold its hard disk business to Hitachi and its PC manufacturing business to Sanmina-SCI, and personal computers gradually withdrew from IBM's production field. Former IBM's personal computer business accounted for 10% of its total sales, but its profit was very low, and its contribution to the company's earnings per share was less than 1%. Give up the low-profit hardware business, get out of the unprofitable PC market, and put more energy into profitable server, software and service business.
Lenovo:
The slow progress in foreign markets and fierce competition in domestic markets are the difficulties faced by Lenovo and many China enterprises. Lenovo lacks innovation. The company's previous main strategy was to follow the makers of industry standards-chip giant Intel and software overlord Microsoft. Not long ago, Lenovo began to sell low-priced computers equipped with AMD processors in rural areas of China with low income. In terms of cost structure, Lenovo also has a certain gap with international giants such as Dell. Lenovo's inventory cycle in the latest quarter was 22.7 days, while Dell's inventory cycle in China was only 4 days. Due to the rapid price reduction of PC parts, it is very important for PC manufacturers to shorten the inventory cycle. In addition, Lenovo's leaders lack some international experience. At present, only 3% of Lenovo's revenue comes from outside China, mainly in Southeast Asia. Therefore, Lenovo's acquisition of IBM's PC division will greatly enhance its influence in the international market, as well as its logistics support and supply chain in European and American markets.
Process:
The acquisition agreement was announced on February 8, 2004, and was approved by Lenovo's shareholders on October 27, 2005. Lenovo officially announced the completion of the acquisition of IBM's global PC business at 3 pm on May 0, 2005.
Significance and influence:
China:
It has achieved a major breakthrough in China's brand strategy, and it is a new choice for China to go global in the process of realizing post-modernism. It is characterized by transforming market forces into capital forces under the national conditions of insufficient technical forces, and then integrating productivity and capital forces to go global in the form of enterprise forces.
Lenovo:
IBM's computer R&D strength, advanced management and culture are what Lenovo lacks most. The acquisition of IBM is very important for Lenovo to enter the field of international PC high-value brand products. After the merger, the new Lenovo will become the third largest PC manufacturer in the world with annual sales of $654.38+03 billion.