Lenovo 2012 Annual Report Download - page 22
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MANAGEMENT’S DISCUSSION & ANALYSIS
2011/12 Annual Report Lenovo Group Limited
20
The overall industry continued to face some supply
constraints on availability of HDD due to flooding in
Thailand. Lenovo managed these challenges well and the
impact of this natural disaster on our business and
customers has now passed. Product availability and
delivery lead times have returned to normal. HDD costs
have stabilized although they remain higher than before the
shortages began late last year. Other key components’ are
expected to remain stable in terms of supply, with
moderate upward trend on prices for the next few
quarters. Lenovo will continue to closely monitor the
industry situation and will leverage its stronger scaling
benefits to continuously improve its supply chain efficiency
and profitability.
Lenovo’s global supply chain also strengthened its
operational foundation to support future growth and
product line expansion. The Group’s new facility in
Chengdu, Sichuan Province in western China commenced
operations in December 2011. The new facility will
substantially increase Lenovo’s overall production
capacity, while improving operational speed and efficiency
of the supply chain network. Meanwhile, with the aim of
strengthening Lenovo’s ability to deliver innovative
products with faster time-to-market, the Group signed an
agreement with Compal Electronics, Inc. in September
2011 to form a joint venture company that will build and
operate a new product development and manufacturing
center in Hefei, China. The implementation plans of Hefei
facility are proceeding and the project is on schedule to
begin production at the beginning of calendar year 2013.
Lenovo announced in May the establishment of the Lenovo
(Wuhan) Industrial Base. The site will include integrated
facilities for mobile internet product R&D, production and
sales, and it will help drive Lenovo’s innovation capability in
the field of mobile internet and optimize its global supply
chain. The new facility will begin operations in October
2013.
BRAND BUILDING
TheGrouplauncheditsglobal“ForThoseWhoDo”
branding campaign last year, taking the next step in
asserting its position as a global leader. The campaign is
aimed at expressing the essence of who Lenovo is as a
company; attracting a
wide range of customers
with a compelling
message; and highlighting
how Lenovo’s innovation
and technology are built
to serve and inspire the
world’s greatest creators,
innovators, and thinkers
– the DOers.
Smart TV Launch Event in Beijing
Lenovo Smart TV