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Lenovo Looks Ahead

Boot Camp feature for Wednesday, September 21, 2005

Lenovo takes on Dell and Hewlett Packard. Bloomberg Boot Camp, a report on today's technology. The number one PC maker in China…which bought IBM's personal computer business this year….is looking to take business away from its rivals…expanding into the small business and consumer markets. Chief Marketing Officer Deepak Advani, who is one of many former IBM PC employees who moved to Lenovo, says Lenovo will grow by being better than Dell, HP and others…in research and customer service…

"Strategy in my mind is really all about focus. Because when we look at our position that we have in China today, we serve consumers, we serve businesses of all sizes and we have a very large market share. Our strategy going forward is that in emerging markets we're going to focus on consumers more aggressively, in mature markets, we believe there's a huge, untapped opportunity for us in the small businesses. Given, when we were part of IBM that wasn't the sweet spot to go after small businesses. So as a result, our share in that segment isn't as high as our share in mid market and large enterprise customers. And down the road, over time, absolutely consumers would be a focus."

Lenovo plans to use the upcoming Winter Olympics in Torino to make consumers worldwide more aware of its brand. It has the right to use the IBM name on its computers for five years. But Advani tells us….that name may vanish more quickly than that. And American consumers may see Lenovo PDAs and cell phones as well. The company won't give a time frame….but it is laying the groundwork already. Bloomberg Boot Camp, I'm Fred Fishkin.