BEIJING, Oct. 23 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on Lenovo and Acer.
The global PC market has been shaken throughout 2007. The cliff-hanging cryptic battle and layout contest between Lenovo and Acer pushed them to become the leading players in China’s PC field. The competition between Lenovo and Acer has a long history. In 2004, after acquiring IBM’s PC scope, Lenovo was listed as one of the top three winners in the PC field. However, with the market share’s rapid growth, Acer has caught up with Lenovo in 2006. Now with the further expansion of these two enterprises, the competitive trend transfers from behind the curtain to the stage, and with Acer acquiring Gateway the level of competition has reached its peak.
Lenovo vs. Acer: Who will win in the PC market?
Both Lenovo and Acer are China’s elite PC producers, but they have different global strategies and layouts. For these factors, Lenovo and Acer will deduce a heart-quaked story.
In the global PC market, the Asia-Pacific region, North America and Europe are the most important central markets that enterprises aim to occupy. Lenovo’s dominant market is the Asia-Pacific market minus Japan. The sales volume accounts for 60% of the total sales, market share accounts for 20% of the total market. In the European market, Lenovo’s market share is only 5%, and its users concentrate around business scope, following HP, Acer, DELL, TOSHIBA and Xerox. So it is urgent for Lenovo to solve how to develop in the American and European consumption markets. And as expressed by Mr. Yang Yuanqing, President of Lenovo, the next objective for Lenovo is to copy its successful experience in China to the American and European markets after the acquisition of IBM’s PC scope and business integrator.
Lenovo proposed to set up the transaction and customer relationship business model, and aimed to apply the business model in both American and European markets. Due to its unique position and figure, Packard Bell entered into Lenovo’s view. In August 2007, it is said that Lenovo and Packard Bell reached an acquisition consensus.
However, on August 27, 2007, Acer announced its decision to acquire Gateway for $710 million in order to battle Lenovo’s expansion. Acer’s dominant markets are Europe, Africa and the Middle East, and its market share accounts for 20% of the total market. But Acer has plenty of room to improve in the Asia-Pacific market. Acer aims to penetrate into the North American market via Gateway.
CCID Consulting considers Acer’s acquisition to be a strategy, but one that carries its own risk, and the act also puts the onus on Lenovo. Mr. Yang Yuanqing said that Lenovo is now developing the new global business model which is aimed at individual consumers and small enterprises in Germany and India. If Lenovo could succeed in these two markets, it will win in any market. Although, Acer’s acquisition sets a barrier for Lenovo, with Lenovo searching for change based on their primary strategy.
CCID Consulting believes that in the short term, Acer will help restrict Lenovo’s global expansion, but it does so by undertaking great risk. CCID Consulting holds the optimistic attitude on Lenovo’s development and pays more attention to the effective integration of brand, business and culture following their acquisition.
About CCID Consulting
CCID Consulting Co., Ltd (hereinafter known as "CCID Consulting" or "CCID"), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliated to the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has set up branch offices in Shanghai, Guangzhou, Shenzhen, and Harbin, with over 300 professional consultants and industry experts. The company’s business covers over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, the Asia-Pacific area and Europe with agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.
Based on four major competitive areas: powerful data channels, industrial resources, intense knowledge and a deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategic planning, IT applications, marketing strategies, human resources and information technology outsourcing. Customers range from industrial IT users, telecommunications companies, energy companies, finance companies, and automobile companies, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to be the number 1 consultant in strategic consulting, the number 1 brand for strategic consultancy, the number 1 advisor for enterprise management and the number 1 consultant for government decision-making.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
