Chinese computer maker Lenovo Group has sped up consolidation with
IBM's PC business, and formed a unit in India to transfer its
success in China to other emerging markets.
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Yang Yuanqing, chairman of Lenovo, the world's third largest
computer maker, said his company would start the second stage of
the consolidation process from October 15, eight months ahead of
schedule, according to Saturday's
China Daily.
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The Chinese firm acquired IBM's personal computer business in
December, including the famous Think brands of notebooks and
desktop computers.
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During the first stage of the consolidation process, Lenovo Group's
original business and the former IBM business ran separately under
the names Lenovo China and Lenovo International to avoid drastic
changes to customers and the organization of the company.
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"The process will take at least five months, so we can have a
smooth operation in organizing the management and a stable increase
in our business in domestic and international markets," Yang said
on Friday.
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Chen Shaopeng, vice president of sales in the Chinese market, said
there would not be any layoffs in the consolidation in China, where
Lenovo and IBM had two separate groups of staff, distribution
channels, and management teams.
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Eagle Zhang, general manager of the domestic research house
Analysys International, believes Lenovo's successes in the first
half of this year made the company confident in accelerating
consolidation.
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"It is just like the usual Lenovo tactic: first test the water and
then push it aggressively," said Zhang.
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According to international market researcher International
DataCorp, Lenovo's shipments grew at three times the market average
in the second quarter and its market share reached 34 percent in
China.
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Lenovo says it will build a unified management platform for product
design and development, supply chain, and sales.
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Yang said his company also saved US$10 million in May and June
thanks to the integration of procurement for Lenovo and Think
products.
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The Chinese computer giant will also reorganize its regional
organization and set up five regional headquarters.
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Apart from existing bases in the United States, Europe, the Middle
East, Africa, and the Asia Pacific region, Lenovo will set up a
China regional unit, a result of the consolidation of Lenovo China
and Lenovo International.
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The company will also set up an India headquarters, highlighting
the importance of emerging markets like India, Russia and Brazil.
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Yang had just visited India and Dubai of the United Arabic
Emirates.
(Xinhua News Agency October 1, 2005)
