Lenovo 2009 Annual Report Download - page 33

Download and view the complete annual report

Please find page 33 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
31
consumer, SMB, large enterprise and public sectors
in China by refining its business model to address the
dynamics in customer needs and buying patterns.
Strengthen Global Commercial Business
Restoring profitability in its worldwide commercial
business is critical to Lenovo’s future success. The
Group has taken restructuring actions in early 2009 to
actively manage expenses for greater efficiency and
competitiveness in its commercial business. In the
2009/10 fiscal year, Lenovo will leverage the strong
business pipeline resulting from signing key contracts in
global account, and increase attach rates for services
as well as software and peripherals. The pipeline will
also benefit from dedicated efforts to capture increased
government stimulus spending in key markets. The
Group’s exceptionally engineered products tailored for
the commercial market and its experienced sales team
will make Lenovo the commercial segment’s top choice
as the economy recovers and when pent-up demand for
PC replacements gradually comes into play.
Establish Sustainable Transaction Model
The Group’s worldwide transaction business presents
great opportunities for growth in both consumer and
SMB markets. Lenovo will put in place a competitive
cost structure and plans to leverage both Idea and
Think brands to create a winning product portfolio in
the transaction market space. In the 2009/10 fiscal
year, Lenovo will launch a strong line-up of close to 50
consumer desktop and notebook computer models
catering to the diversified consumer needs, focusing
on the product trends creating demand for all-in-one
PC, ultra-portable, and 3G-enabled connections. In
addition, the Group will continue to increase its coverage
of the worldwide market by strengthening its sales and
channel networks and use quarterly product campaigns
to drive tight end-to-end execution.
Expand in Emerging Markets
Accounting for about 80 percent of the world’s total
population, emerging markets continue to be a key
focus of the Group in driving future growth. In the
2009/10 fiscal year, Lenovo plans to set up a flexible
regional management system that allows its teams to
swiftly respond to market changes with quick decision
making to address product, channel and marketing
needs. The Group will also leverage its successful
channel network management system in China to foster
closer ties with channel partners in other emerging
markets to achieve win-win results. More importantly,
Lenovo will ensure its success in emerging markets
by building up a dedicated end-to-end operation that
supports services, product development and supply
chain needs.
REALIGNMENT OF ORGANIZATIONAL
STRUCTURE
To align the Group more closely with its strategic
direction and market dynamics, Lenovo announced
in March 2009 a new organizational structure that
supports speed, efficiency and execution. The Group is
now organized around its customer segments with the
creation of two new business units – one focusing on
customers in mature markets, and the other focusing
on customers in emerging markets. This realignment
enables Lenovo to better leverage synergies that
exist among similar markets that may be separated
geographically but share market dynamics that impact
its customers, products and go-to-market approach.
The goal is to create a faster, more streamlined
organization that can adapt quickly to growth
opportunities while more effectively focusing resources
on the Group’s core business.
IdeaPad Y550 notebook