Lenovo Vs. Helwett Packard in the Chinese market

The Chinese PC market is besides the U.S. the second largest market in the world. With its 1.3 billion inhabitants and an expected market growth of 19%1 in the Chinese PC market is probably also one of the most interesting emerging markets. While the local companies were very strong in the past, they now have intense competition with the western giants that entered the industry. The market leader is still the home-grown Chinese company Lenovo, which got globally well-known after the acquisition of IBM’s PC division. Now in 2008 one of their most aggressive competitors is the famous American company Hewlett-Packard that are the world’s No. 1 in global market. With its new products HP tries to gain new market share in China and compete against Lenovo on its own market, while it just started acting globally. Whereas Lenovo has excellent market knowledge and tough low cost advantage, HP has universal experience in technology and advertising and high brand recognition. Where some years ago the focus was on the corporate and governmental market in China, the consumer market is now rapidly growing. Especially in larger cities, where incomes are higher, lie new opportunities. Although HP and Lenovo have a slightly different positioning on the market, they both try to “win the race” on the mass market. The following report compares the two rivals Lenovo and HP on the Chinese market and analyses the industry, the companies and their marketing strategies. The aim of our research is to provide information about the Chinese PC Market for present and future companies with recommendations based on the different opportunities of the market. In order to create a complete overview we started with detailed analysis of the Chinese PC market (SLEPT, 5-Forces, Market shares and Segmentation). Sequentially we compared HP and Lenovo according to their marketing strategies and their acting on the market (SWOT, Targeting and Positioning). Finally we added our concluding analysis and our recommendations to the companies that contains the essential ideas of our work.