1. LENOVO AND IBM

2. 


An strategic alliance is an agreement for cooperation
among two or more independent firms to work
together toward common objectives.
It is a collaboration with aim of synergy where each
partner hopes for greater benefit than as individual
efforts.
When firms of different company alliance together it
is called international strategic alliance.

3. 
Enables to gain competitive advantage in new
economy

Grow and expand more quickly and efficiently

Learning from partners and developing competencies
that may be more widely exploited elsewhere

To get benefits from established channels of
distribution , marketing, brand reputation etc

4. ALLIANCE BETWEEN
LENOVO AND IBM

5. 


Lenovo
Group
Limited
is
a
Chinese multinational technology firm with
headquarters in Beijing, China
It sells personal computers, tablet computers,
Smartphones, workstations, servers, electronic
storage devices, IT management software and smart
televisions
Lenovo has operations in more than 60 countries and
sells its products in around 160 countries and has
now become the 3rd pc provider in the world.

6. 


IBM is an
American multinational technology and consulting c
orporation
headquarter in New York, United States
manufactures and markets
computer hardware and software, and
offers infrastructure, hosting and consulting
services in areas ranging from mainframe
computers to nanotechnology

7. 


ALLIANCE: December 8th, 2004
VISSION: to develop and deliver industry specific,
integrated technology solutions for enterprises, small
and mid-market businesses and individuals
AGREEMENT: The agreement aligns Lenovo's
expertise in building the best engineered personal
computers with IBM's extensive IT services and
technology capabilities

8. 


Meet the business needs of clients in industries such as
healthcare, financial services, education, retail and
government
IBM market and sell Lenovo PCs through IBM
Global Services and its strategic outsourcing deals.
Through this agreement, customers will now have the
opportunity to include the purchase of Lenovo’s best
engineered PCs within the context of their overall
technology solutions.

9. 
Lenovo had little business outside the country

The increasing fierce competition from aggressive
foreign rivals such as Dell and HP

Both the companies was financial problems

Shares of the Lenovo dropped nearly 60 per cent in
the year 2004

10. 
Lenovo intended to expand its business globally

Lenovo needs a well-developed worldwide
distribution network

IBM’s presence in the world’s fastest growing IT
market

China is a tough nut to crack especially for outsiders

11. 


FINANCIAL ASPECTS-the pressure from the
market leader Hewlett-Packard and Dell and low
confidence of the shareholders
BRANDING-‘Lenovo’ name is almost unknown
outside of China, it is hard for marketers to build an
international brand from scratch
CULTURAL CLASHES- The differences can be
caused from the different corporate cultures or
national cultures.