Lenovos Entrance in Argentina for Mobile Phone Essay

Lenovos Entrance in Argentina for Mobile Phone - Essay Example was the initial name of Lenovo. Lui Chuanzhi was the founder of the company. In the initial stage, the company was mainly into selling of merchandising that ranged from television to roller stakes. The company has established a subsidiary in Hong Kong that mainly focuses on the PC distribution i.e. Legend Holding Limited. The success of the concerned brand was the key reason that facilitated the expansion of the company (Lenovo 2013). Correspondingly, in the year 1990, the strategy taken by the Chinese government was to reduce the rate of import tariffs. This further ensured effective international trade between the company and another company named IBM. This strategy led to the expansion of the Legend Group Holdings, which is a subsidiary company within the Hong Kong Stock Exchange. During these years, the company had flourished within the international boundaries. This is the reason the name was changed and reframed as Lenovo. 2.2 Lenovo’s Culture In the year 2005, Lenovo, t he Chinese company made acquisition of IBM’s PC divisions. This emancipated spectacular changes within the company’s history. This change within IBM was a cultural shock for the employees of IBM. The cultural shock of the employees was effectively mitigated by the management of Lenovo. In case of the Chinese management, they efficiently responded to the insecurity pertaining to the employees by hosting cultural events. In this regard, such cultural events helped in boosting the motivation of the employees. Moreover, it was effectively conveyed by the Lenovo’s management to the employees that they intend to expand the operations rather than liquidating anything. Correspondingly, on part of Lenovo’s culture, it has been ascertained that... This paper approves that Lenovo to get success in Argentina can use strategic alliance mode of entry for its mobile phone by collaborating with the leading market player in the mobile sector America Movil’s Claro. This alliance would help in creating a strong market base because of the brand name of Lenovo and its technological advantage. The reason for the alliance would be to derive the benefit of access to supplementary services. This entry strategy would help Lenovo to get success in the Argentina market similar to Unicom Telecommunications market entry strategy made it a huge success. This report makes a conclusion that the emerging demand of mobile phones in Argentina has been the major factor that motivated Lenovo to seek the expansion strategy. The political environment of Argentina as per the analysis is not very supportive for the new market entrants. Thus, to ensure a smooth entry in Argentina, Lenovo needs to use the alliance strategy with the market leader. Moreover, it is to be recommended that a proper internal and external environment market scanning is done through the research and development team to continuously understand the trend of customer preferences. Furthermore, the use of proper pricing strategy along with understanding of the cultural aspect of the country is to be followed by the management by proper entry mode strategy. It is also recommended that the awareness of the global brand should be created affectively in the minds of the people.