Lenovo 2016 Annual Report Download - page 25
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23
2015/16 Annual Report Lenovo Group Limited
Risk Description Key Risk Mitigations
Business Risk
The Group operates in a highly competitive industry
which faces rapid changes in market trends,
consumer preferences and constantly evolving
technological advances in hardware performance,
software features and functionality. It faces
aggressive product and price competition from
competitors.
It faces risks associated with implementing its
strategic initiatives as the scale and breadth of its
business models and operations expand and evolve.
Failure to respond effectively to changes in market
trends or consumer preferences at competitive
prices against the backdrop of global slowdown
in the traditional PC market could harm its
competitive position.
Continual reviews of competition and market
trends.
Maintain a competitive position through
commitments to innovate and build a broad
product portfolio and grow brand name
to differentiate the Group and gain market
recognition.
Execution of clear strategy to protect and
drive profitability in the core PC business, while
diversifying by attacking in the faster growing
Mobile and Enterprise businesses.
The Group operates globally and as such its results
could be impacted by global and regional changes
in macro-economic and socio-political conditions
and regulatory environments.
Adverse economic conditions may result in
postponements or decreased spending amid
concern over weak economic conditions. In
addition, they may contribute to potential supply
chain volatility, causing potential product shortages
or delays and insolvency of key suppliers.
Ongoing unstable political conditions and changes
in regulatory or legal regulations in one or several
countries may increase the cost of operations and
expose the Group to potential liability.
The Group has diversified its geographic
sources of revenue and profit to reduce its
dependency on any single country or region.