Lenovo 2011 Annual Report Download - page 9

CEO’S REPORT
2010/11 Annual Report Lenovo Group Limited
8
During the past two years, Lenovo has successfully turned
around our business. Now, I am pleased to report that we had
one of the best years in our company’s history.
Our strong performance during the fiscal year was driven by the
following key factors:
• A clear strategy that balances short- and long-
term goals. We protect our core business in China and
relationship business in mature markets while attacking
high-growth opportunities in emerging markets, as well
as the transactional and mobile internet businesses. Our
employees around the world are all focused on executing
this strategy.
• A leadership organization that enables the global
senior management team to consult with each
other frequently, consider issues carefully and make
efficient decisions. We have a diverse, international
leadership team that provides the experience, expertise and
perspective to compete successfully in a rapidly changing
global environment.
• Investment in innovation that differentiates our
products. Lenovo products consistently win awards and
receive rave reviews. They deliver the high quality, reliability
and durability to meet our customers demand. We will
continue to leverage spirit of innovation and history of
technological breakthroughs to into new product categories
and drive future growth.
• A unique, efficient, end-to-end business model.
Our relationship model serving global, large enterprise
and public accounts is a real strength and has delivered
outstanding profits. At the same time, our transactional
model addressing small-to-medium sized businesses and
consumers is being implemented worldwide – and we are
gaining share and momentum in this area.
• Our culture of delivering on commitments has taken
hold. The Lenovo Way inspires our people to “do what
we say and own what we do.” A strong culture makes us
growing faster and more competitive, and The Lenovo Way
is becoming a key competitive advantage.
Because of these factors, we had an outstanding fiscal year,
setting records, achieving major milestones ahead of schedule
and positioning ourselves well for even stronger growth in the
future. These notable achievements include:
• Lenovooutperformedthemarketandwasthefastest
growing major PC company in every quarter during the fiscal
year.
• Lenovo’sworldwidemarketsharereachedanall-timehigh
for the second straight year. We have sustained our double-
digit share worldwide. We gained share in every market and
every product segment.
• Wesetall-timehighsforunitshipmentsandsales.Andfor
the first time, our sales surpassed US$21 billion.
• Ourprofitabilitygrewsignificantlythankstobalanced
performance worldwide.
• Allofourgeographiesdeliveredoutstandingresultsaligned
with our global strategy:
- We reached another all-time high for market share in
China, where we further strengthened our market-
leading position.
- We became number one in global emerging markets
including China .
- We gained share and increased profit in our Mature
Markets Group. By the end of the fiscal year, we had
achieved record share for our Mature Markets Group.
• Ourperformanceincriticalproductsegmentsalsosetanew
standard for Lenovo:
- We are the number one notebook company globally in
education and government segment.
- We are the number two global commercial notebook
company.
- We are the number two All-in-One PC company
worldwide.
- We sold more than 11 million consumer PCs.
• Weeffectivelyscaledourgrowthbymaintainingastrong
focus on controlling expenses and achieved our lowest
expense/revenue ratio since acquiring the IBM PCD.
• Weformedanewbusinessunit–MobileInternetandDigital
Home Group – to aggressively attack the fast-growing
mobile internet space. With this focus, we will enhance
our existing product lines and expand our end-to-end
capabilities in this important area. Already, Lenovo has
launched our new tablet – LePad – in China and delivered
growing volume of our smartphone launched last year in
China. In the fiscal year 2011/12, we will launch a complete
family of tablet products in major markets around the
world while investing in new areas like smart TV and cloud
technologies that may one day become core business for
us.
• WemadeboldmovestoexpandourPCbusinessaswell.
Lenovo announced a joint venture with NEC in Japan. This
will make Lenovo the number one PC company in Japan,
the world’s third largest PC market.
These successes demonstrate that we have the right strategy
and solid execution, and that the company is well positioned to
deliver strong, sustainable growth in the future.