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41
2014/15 Annual Report Lenovo Group Limited
FUTURE PROSPECTS
LOOKING FORWARD, THE GROUP WILL CONTINUE TO FOCUS ON TRANSFORMING INTO A TRULY
GLOBAL AND DIVERSIFIED COMPANY WITH IMPROVED OPERATING EFFICIENCY AND STRENGTHENED
COMPETITIVENESS. THE GROUP IS CONFIDENT THAT MOTOROLA AND SYSTEM X ARE ON
TRACK TO DELIVER THEIR TARGETS. THE GROUP WILL CONTINUE TO INVEST IN BUILDING ITS
CORE COMPETENCIES, PRODUCT INNOVATION, AND END-TO-END EFFICIENCY ENHANCING ITS
COMPETITIVENESS TO ENSURE FUTURE SUSTAINABLE PROFIT GROWTH.
Lenovo has demonstrated a consistent and solid track record in delivering results through strong execution of its
clear strategy to balance short-term results and long-term objectives. The Group will continue to focus on protecting
and driving profitability in the core PC business, while attacking in fast growing mobile, enterprise and ecosystem
and cloud businesses. Lenovo believes its strong PC leadership remains a solid profit engine with plenty of further
opportunities for profitable growth, particularly as the industry continues to consolidate.
Meanwhile, the rise of new technology and market trends, particularly the social mobile internet, has posed market
opportunities and challenges as consumer behavior is changing. The Group is undergoing a transformation process,
changing its focus from a product-centric to customer-centric company; from selling products to providing a
distinctive experience and engaging customers. The Group will increase the number and quality of touch points with
customers beyond purchase, establishing a stronger connection and engagement with customers. From the product
perspective, the Group will broaden from hardware to end to end experiences beyond devices. This will include a
focus on personalization and connectivity (to networks, device to device and cloud services). In addition, the Group
will pursue innovations from its sales, manufacturing, services and marketing process, to further enhance its user
experiences. The Group believes this transformation will position Lenovo well to capture the growth opportunities
arising from this trend.
Mobile
Drive mobile profitable
growth through
global expansion,
integration synergy &
consumer centric
transformation
Leverage synergies
and innovation to
fund the growth
Ecosystem & Cloud
Expand ecosystem
and cloud services
and deliver a
differentiated “Device
+ Service” user
experience
PC
Protect profit & core Attack new markets & profit pools
Enterprise
Business Model Transformation
Global-local business model | In-house manufacturing | Vertical integration | Sustainability | On time delivery | Quality leadership
Operational Excellence
Global Culture
Customer focused | 5P culture | Diversity & inclusion | Entrepreneurship
Customer-driven product & services innovation | Global branding | New markets | Premium products | Security & privacy leadership
Innovation Leadership
Unique business models | Start-up model | Internet model
Accelerate to
undisputed #1 in
global PC with better
profitability
leveraging industry
consolidation
FY2015/16 Strategy