Lenovo 2014 Annual Report Download - page 34

32 Lenovo Group Limited 2013/14 Annual Report
MANAGEMENT’S DISCUSSION & ANALYSIS
To facilitate the Group’s strategy and sustain its growth
momentum, effective from April 1, 2014, Lenovo has
established four new, distinct business groups (BG),
including PC, Mobile, Enterprise, and Ecosystem and
Cloud Services, as new pillars of growth for the company.
Some of these will leverage the strength and competitive
advantage in the traditional PC business. Others will need
completely different core competencies because they
represent entirely new opportunities. Each business group
has a strong leader, a clear strategy, and is organized
as end-to-end business with an aim to drive greater
efficiency and future sustainable profitable growth in each
market.
The evolution of Lenovo’s business leads the Group to
the new “Triple PLUS” strategic roadmap. The first new
PLUS combines PC, mobile and smart TV to become
“Smart Connected Devices”, enabling the Group to share
innovation, operational excellence, channel strengths and
brands across all devices. The second PLUS combines
Smart Connected Devices with Infrastructure Devices,
forming the Total Device Portfolio, building on the strong
relationships the Group established with enterprise
customers and channel partners, to PCs, tablets and
smartphones they get through Lenovo. The third PLUS
combines Total Device Portfolio with Cloud Service
to create The Lenovo Experience, thus delivering a
compelling experience and value across the entire device
portfolio for the customers.
To strengthen its future growth, the Group has recently
announced plans for two acquisitions in mobile and
enterprise areas. On the mobile front, Lenovo and Google
Inc. entered into a definitive agreement on January 29,
2014 under which Lenovo plans to acquire the Motorola
Mobility business, including the MOTOROLA brand and
Motorola Mobility’s portfolio of innovative smartphones like
the Moto X and Moto G and the DROID™ Ultra series.
The Group believes the acquisition of such an iconic
brand, innovative product portfolio and incredibly talented
global team will immediately make Lenovo a truly global
smartphone player in the fast-growing mobile space.
Meanwhile, on the enterprise front, Lenovo and
International Business Machines Corporation (“IBM”)
announced on January 23, 2014 a definitive agreement
they have entered into under which Lenovo plans to
acquire IBM’s x86 server business. The Group believes
the acquisition, upon completion, can enable it to gain
immediate scale and credibility in the server market and
become a top global x86 server provider, capturing the
significant growth opportunities in the enterprise hardware
systems space.