Lenovo 2014 Annual Report Download - page 11

9
2013/14 Annual Report Lenovo Group Limited
• We continued to strengthen our leading end-to-end
business model with even greater vertical integration,
opening new manufacturing facilities in Wuhan, China,
and in Itu, Brazil. These additions to our worldwide
network not only make us more efficient, but also make
us more responsive to market changes and customer
needs.
• Even as we strengthen our leadership in the market, we
also proved our innovation leadership, earning a record
61 awards at the Consumer Electronics Show, the
world’s largest and most prestigious technology event.
In addition, we earned multiple awards at the Mobile
World Congress, including our first for an app – our
SHAREit mobile app – demonstrating we are extending
our innovation to our ecosystem.
• We built the foundation for our Ecosystem business,
creating one of the world’s largest app stores with
around 6 billion total downloads and almost 25 million
daily downloads. Our ecosystem is helping to create
a new and unique experience for Lenovo users. And
we have created several star applications. Already, the
award winning SHAREit app has more than 100 million
users, and we have several more apps with over 50
million users to date.
Our strong performance across our entire business,
and setting so many records in a challenging market
environment, puts Lenovo in an incredibly strong position.
Yet even after a record year, we must never be complacent
and must always focus on the future.
BOLD ACTIONS TO DRIVE FUTURE GROWTH
In 2013/14, Lenovo announced plans to acquire the x86
server business from IBM, and then to acquire Motorola
Mobility from Google. We have been decisive and
determined in seizing these tremendous opportunities to
create future pillars of growth.
The IBM x86 server deal matches the global scale, full
product portfolio, and technology leadership of IBM
with Lenovo’s strong commercial business and channel
relations, efficient in-house manufacturing, and operational
excellence. This combination will enable us to outperform
both traditional rivals as well as OEM/ODMs.
The Motorola deal brings a global brand recognized
around the world, strong carrier and channel relationships
worldwide, and a strong portfolio of Intellectual Property
(IP) and rights. By combining these strengths with Lenovo’s
manufacturing efficiency and strong presence in China and
emerging markets, this deal will not only create the world’s
third largest smartphone company, but also the combined
capabilities to break through from the pack of Tier 2
players worldwide.
Most importantly, both of these deals will bring unmatched
talent to Lenovo. Not only does each deal bring strong
teams of experts with deep relationships in their
businesses, but both bring some of the best and most
experienced engineers in the world, further strengthening
our innovation leadership.
We have also proven our ability to successfully manage M&A
and integrate new businesses. From the original IBM PC
deal, through our integrations with NEC PC, Medion, CCE,
Compal, Stoneware, and EMC, we have always been able to
bring companies, cultures and people together to win quickly.
We are working with regulatory authorities on both of these
acquisitions. Subject to that approval, once complete, I
am confident that our preparation, capabilities, operational
excellence and clear strategy will again enable us to
achieve sustainable growth, long-term success and
outstanding results for our company, our customers and
our shareholders.
ORGANIZED FOR THE FUTURE
Lenovo is well prepared to succeed with both of these deals.
They are both perfect fits for our strategy, and our vision for
the future. Moreover, we have already organized ourselves to
effectively manage these new businesses. Even before we
announced these deals, Lenovo had already determined to
ThinkServer RD440