BEIJING, Dec. 22 /Xinhua-PRNewswire/ -- Analysys International, a leading Internet-based business information service
provider, says that Lenovo's replacement of its CEO shows its strategy of further business consolidation and
development of global expansion plans.
News Background:
Lenovo Group Limited, the world's third-biggest PC maker, announced on December 20, 2005 that its Board of Directors
had appointed William J. Amelio the new President and Chief Executive Officer, replacing Stephen Ward. Amelio was
previously Senior Vice President of Dell Inc. and President of Dell Asia- Pacific and Japan. Stephen M. Ward, Jr. will
act as consultant and assist in this transition.
Quick Analysis:
Analysys International thinks that there are five objectives for this action:
1. To cater to the need of further business consolidation: Lenovo has finished its initial consolidation for phase one,
but they still need to deepen the campaign. William Amelio's operation experience and understanding of both mature
markets and emerging markets will help drive the further consolidation.
2. To improve the operation efficiency of Lenovo: Amelio served in senior executive positions in Dell and IBM for many
years, his rich operation experience and strong executive capability in promoting operation efficiency will help the
new Lenovo to achieve profitable growth objectives in overseas markets.
3. To meet the demand of Lenovo's mixed marketing model and boost its direct marketing capability: After announcing its
mixed marketing model, Lenovo earnestly hopes it can expand the marketing model worldwide. Although channel marketing
is Lenovo's strength, how to expand the coverage of the direct marketing model and combine it seamlessly into the whole
marketing strategy is a pressing challenge for Lenovo. Amelio used to act as president of Dell Asia Pacific, so his
deep understanding of direct marketing and strong executive capability are what Lenovo want to utilize to enhance its
direct marketing capability and spread its mixed marketing model throughout the world.
4. Lenovo made this decision after careful considerations to meet the timely demand of its focus transition: Ward
mostly shouldered a transitional role to stabilize former IBM PC employees and clients. He has successfully completed
his task for phase one of the acquisition, and now it's time for Lenovo to start its new phase of seeking a more
aggressive and profitable expansion.
5. Amelio's working background in the Asia-Pacific region and his understanding of Oriental culture make it easy for
him to understand and communicate well with the current senior management team of Lenovo, which would be an advantage
in the deepened consolidation of Lenovo and execution of expansion strategies.
Analysys' Position:
Analysys International believes that Lenovo's replacement of their CEO is to cater to the need of further business
consolidation, as well as acting as a new start for the execution of its expansion strategy.
In the future, Lenovo will expand more aggressively both in the Asia- Pacific region and throughout the world. Amelio's
rich experience in sales and operations can help Lenovo achieve this goal. The new appointment of Amelio shows Lenovo's
strategy adjustment at this turning point from stabilization to expansion.
Additional information is available in Analysys International's website:
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