Lenovo 2009 Annual Report Download - page 34

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MANAGEMENT’S DISCUSSION & ANALYSIS
2008/09 Annual Report Lenovo Group Limited
32
At the same time, the Group’s product organizations
were also realigned to help reinforce its focus on
innovation and better serve both commercial and
consumer customers. The new Think Product Group
focuses primarily on commercial customers, relationship
business model and the premium end of the SMB
transaction market. The new Idea Product Group
focuses on consumer and SMB transaction business in
emerging and mature markets, and entry-level products.
BUILDING SUCCESS ON STRENGTHS
The Group’s dominant position in China’s PC market
and its ability to deliver profitable growth have been built
on the fundamental strengths that lie in its dual business
model, lean cost structure and innovation leadership.
In the 2009/10 fiscal year, Lenovo will expand these
strengths further to strive for execution excellence
across its global operation.
Effective Business Model
Lenovo’s dual business model sets its products,
services and business process around customer need
and market segmentation. This tightly integrated, end-
to-end model allows the Group to quickly react to
market dynamics and changes in the back-end.
Expanding its transaction business outside China is
critical to achieving Lenovo’s goal of gaining scale. In
the 2009/10 fiscal year, the Group will further strengthen
the global implementation of its back-end driven
transaction model in order to deliver more consistent
and sustainable performance in international markets.
Through quick identification of back-end opportunities,
product portfolio definition and a push model, Lenovo
will be able to capture opportunities in the more price
sensitive market segments and react rapidly to changes
in market dynamics.
Lenovo will continue to implement the best practices of
its relationship business model from country to country.
At the same time, Lenovo will refine its infrastructure,
including finance, employee compensation and IT systems,
so that it can accurately identify issues, measure results
and provide incentives for improvements.
Lenovo employee working to solve an IT issue