Lenovo 2009 Annual Report Download - page 25

Download and view the complete annual report

Please find page 25 of the 2009 Lenovo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 156

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

2008/09 Annual Report Lenovo Group Limited
23
Relationship & Transaction Business Models
Despite the slowdown in the relationship business
during the 2008/09 fiscal year, Lenovo held its
market position through increasing contributions from
newly acquired relationship accounts, maintaining
the business among large enterprise customers and
setting up dedicated public sector teams to capture
government stimulus spending in major markets. The
increased emphasis on demand generation during the
fourth fiscal quarter also yielded benefits.
The Group’s transaction business continued to
build momentum around the world, accounting for
approximately 37 percent of Lenovo’s PC sales
excluding Greater China in the 2008/09 fiscal year.
Despite the economic challenges in the second half of
the fiscal year, Lenovo’s overall transaction business
performed in line with the market, driven by expanded
coverage of consumer retail and SMB resellers,
improved partner productivity, growth in selected
countries and business partner demand generation
programs.
Services, Software & Peripherals
Among the high-margin adjacent businesses, Lenovo
Services delivered approximately 20 percent year-
on-year increase in sales during the 2008/09 fiscal
year. Lenovo was able to offset some of the impacts
of reduced enterprise spending by launching multiple
new services offerings, including ThinkPlus™ Services
and Asset Recovery Services, to meet ever expanding
customer needs. However, Lenovo’s Software and
Peripherals business sales declined approximately 8
percent year-on-year in the 2008/09 fiscal year but
remained a significant profit contributor and continued
to see strong growth in China. The Group continued
to expand its software and peripherals offerings by
introducing new technology such as Secure Managed
Client technology and ConstantSecure Remote Disable.
In collaboration with partners, Lenovo also launched
Anti-Theft technology and Lenovo ConstantConnect in
the second half of the fiscal year.
Workstations & Servers
With respect to its expansion into the higher margin
product markets, Lenovo laid the foundation during the
fiscal year to position the company for strong growth
ThinkServer product family