Lenovo 2015 Annual Report Download - page 12

CHAIRMAN AND CEO STATEMENT
• Operational excellence: Lenovo never stops improving its unique, efficient business
model. This starts in PCs with our dual-business model: serving global, large enterprise
customers through our relationship model and small-to-medium businesses and
consumers through our transaction model. Yet we also create new business models, such
as our new ShenQi business in China, to reach customers online. No matter the route
used to reach customers, our hybrid manufacturing model gives us a key competitive
advantage by giving us additional flexibility to meet customers’ needs. Operational
excellence continues to be a core Lenovo strength.
And our business transformation project, currently underway, will help us better leverage
internet to do business with our customers, and make our business model even more
advanced, optimized and efficient.
• A strong, diverse global team that attracts the top talents at both a worldwide level
and in key markets. While incredibly diverse, our team is united by the Lenovo Way – our
commitment, ownership and pioneer culture. This shared set of values helps us operate
with even greater speed, creating a clear competitive advantage.
DIVERSIFIED FOR FUTURE GROWTH
Today, Lenovo is a bigger and more diverse company than ever thanks not only to strong
organic growth, but also due to the successful completion of two historic acquisitions in the
last fiscal year. The acquisitions of both the System X server business from IBM and then
Motorola from Google immediately made Lenovo a significantly stronger global player in
both x86 servers and smartphones. More importantly, Lenovo now has three major growth
engines – PC, Enterprise and Mobile.
The strengthening of new growth engines makes Lenovo’s business significantly more
balanced. A year ago, more than 80% of Lenovo’s revenue came from PCs; now, even with
record PC performance, this segment is only 63% of our new business. Not only is Lenovo
less reliant on one particular business, but we are now able to attack growth opportunities
across the full spectrum of personal technology products.
Our business today is more diverse not only in terms of products, but also in terms of
geographic focus.
In the 10 years since Lenovo made another historic deal – acquiring IBM’s PC division
– we have proven we know how to not only integrate acquisitions, but also how to
strengthen and grow these new businesses. Just as we built the PC
business from #3 a decade ago to #1 today, our expectation is to
grow these new businesses to compete with the world leaders.
We will accomplish in the same way we have built Lenovo in the
last six years: by attacking to gain share while building from our
foundation of strengths.
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10 Lenovo Group Limited 2014/15 Annual Report