Lenovo Analysis

1694 words - 7 pages

Lenovo – actor/reactor to the environment

Lenovo both acts and reacts to the environment in order to understand what the market wants and to develop new techniques or other potential advantages. They try to come up with new products, but they also innovate their earlier business inventions. In 2006, the company felt they had compe-tition with Hewlett Packard and started to look for new ideas and inspiration (Businessweek 2006). During these years the company tried to act to the environment, but they also reacted like they bought other companies or had agreements for to get a specific technique or a patent. For example the company had an agreement with Nuiteqs for to get their mulitouch ...view middle of the document...

Lenovo, as a pioneer in the Chinese market, is recog-nized worldwide for being an innovative company but being innovative has its own benefits and especially risks when we are talking about intellectual property (IP) rights. The main issue is that the Chinese government does not prevent imitation and the result is that China is still a leader in pirated and counterfeit products. Since the country has failed in this process, the multinational companies are putting pressure and suggested to China to reform their IP legislation if they really wanted to operate globally but even to make things work better in their country. A good example is what Microsoft and Lenovo did. They have made an agreement together in order to protect their products from imitation. Lenovo has to preinstall Microsoft Windows in their computers to avoid the software copies. The IP rights, patens and trademark laws exist in China but they need to be reinforced (Kassner 2012).

Lenovo as one of the top enterprises in China has differentiated itself from the other enterprises because it has used and explored the most efficient mechanisms for protection of their intellectual property rights (Han 2007). It became one of the few hard drive producers in China that owned independent intellectual property rights in 2003 (English people CN 2003). Lenovo does not only protect its own IP rights but, as Chen Shaopeng, senior vice president of Lenovo Group pointed out: "As a global corporate citizen, Lenovo is deeply committed to the protection of intellectual property. We continue to take the lead by encouraging more businesses and individual users to respect and protect intellectual property as a means of building an innovation-friendly business environment" (Lenovo 2007).

As Lenovo is one of the companies in the PC industry with the highest number of innovations, they have registered more than 6,500 patents recognized worldwide (Lenovo 2013a). The best known are, for example, the TrackPoint pointing device which is “the little red button” . Screen mobile workstation, a ThinkStation line, or for example YOGA which is a “patented 360 degree dual-hinge flip design” (Memosrl 2010 p.10).

However, this company also encountered infringement issues such as unauthorized shops, fraudu-lent acts and counterfeit goods. For instance, Lenovo estimated that there were some thousand stores around China offering its products without prior authorization from Lenovo in 2007. Another example was the production of “handwriting pad products” under the Lenovo brand name, which it had never manufactured. These main problems have declined with the strengthening of the trade-mark protection in 2007 onwards. Back in 2007, Lenovo had over 2200 registered trademarks around the world. An example of some of their trademarks can be found in Appendix A. Lenovo stands a view that trademarks systems are more complex and diverse than the patent protection, therefore trademarks play a very important role in its IP...

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