Lenovo 2012 Annual Report Download - page 9

2011/12 Annual Report Lenovo Group Limited 7
Lenovo has been preparing for this industry change for several years.
Our MIDH Group is driving our expansion into these new devices,
and we have made good progress. We have made our strongest
gains in China, where our focus is to transform Lenovo into a full
PC+ company in the year ahead. Outside of China, we will adopt
2-step strategy. We first will work to further strengthen our brand
and continue to attack in the consumer space and enhance our
channel, brand and ecosystem as a first step, before expanding
further into the PC+ space. With a firm foundation in PCs, we will
push ourselves even harder in the years ahead to ensure that our
leadership in PCs transitions into leadership in the PC+ Era.
PRIORITIES FOR THE YEAR AHEAD
In the year ahead, Lenovo will focus on these priorities:
• Strategy:Our“ProtectandAttack”strategyhasledoursuccess
and growth for the last three years, and will continue to guide our
execution. In the year ahead, we will protect our strengths in China
and relationship sales, focusing on strengthening our leadership
position and improving profitability. We will continue to attack in
Emerging Markets and Consumer sales. And we will maximize our
advantages to expand our server/workstation business and expand
our Services business.
• Win in the PC+ Age: We will continue to attack in the Mobile In-
ternet space, pushing for rapid growth in smartphones and tablets,
and expanding into Smart TV.
• Innovation: Our continuing investments in innovation will drive
further breakthroughs on our core PC products, creating a better
user experience and driving differentiation. In addition, we will make
our products Cloud Ready and Cloud Easy. And we will bring bet-
ter design, smoother user interface, killer applications, and a great
customer experience to all our products.
• Brand:Wewillcontinuetoinvestinour“ForThoseWhoDo”cam-
paign, to further increase awareness in our brand and drive growth
worldwide. The continued strengthening of our brand will make us
more competitive in the consumer space and enhance the value of
our products, leading to improved profitability.
• Business Model: We will continue to invest in our end-to-end
business model, particularly in enhancing and executing our vertical
integration. This means enhancing our in-house manufacturing capa-
bility, and building closer partnerships with strategic suppliers, helping
us to define the specifications of key components, and develop exclu-
sive core components, thereby driving more product differentiation.
• Organized to Keep Growing: To support the execution of our
strategy, we have rearranged our organizational structure into four
geographies: China, North America, Europe-Middle East-Africa
(EMEA) and Asia-Pacific Latin America (APLA). This means we can
further tailor our strategy to address each geography and drive even
greater growth.
• Execution: Strong execution of our strategy has been the key to
our growth. We will drive even greater success by continuing to
focus on controlling costs and scaling expenses to further enhance
our competitiveness.
Lenovo’s accomplishments in the last year have put us in the position
to become the leading PC company in the world. But we will not stop
there. We are focused on what we need to accomplish to keep grow-
ing in the PC+ Era and on reaching our long-term objective of becoming
one of the world’s leading personal technology companies – a company
respected and admired around the world, and a company that will
last for generations. Our strong execution is led by our 27,000 people
across the globe, who are fully committed to continuing our strong
momentum. I have great confidence in our strategy and our team, and
believe we are well positioned to continue to grow in the years ahead.
Yang Yuanqing
Chairman and Chief Executive Officer
Hong Kong, May 23, 2012
Lenovo completed
the best year in our
history, and our future is
brighter than ever