ASiAn invASion wElcomEd - ProMÃƒÂ©xico

More documents

Recommendations

Info

14 Negocios photos courtesy of lenovo Global Technology Legend Holdings’ merger with IBM has turned the Chinese company into Lenovo, a technology firm that is betting on “worldsourcing” and focusing heavily on Mexico and its valuable market. By Jennifer Chan Faithful to the motto that energy only renews itself, Lenovo is in reality the new face of Legend Holdings, a Chinese company that 15 years after its creation decided to internationalize itself. Legend was looking to buy a Western company to complement its value, given that up to that point it was only doing business in China. It was then when it merged with the personal computer division of IBM. Combining the best of the East and West, Lenovo (the name comes from New Legend) was born in 2005. It had global vision and policies to create a leading computer company with a strong presence in markets developed from emerging areas. The company is dedicated to the development, manufacture, and worldwide distribution of technology products and services, with its main focus on personal computer products. This includes desktop and laptop computers for use in both businesses and at home. Its star products, from the Think family, (including the ThinkPad laptops and its associated line of products ThinkCentre, ThinkStation, ThinkServer, IdeaPad and IdeaCentre) have been recognized around the world. They were included on PC World’s list of the 10 best laptops and have been considered as “the most innovate products” in two consecutive editions of the annual Consumer Electronics Show in Las Vegas, Nevada. A small world Lenovo is a good example of worldsourcing. The company does not have a central location and it counts on a distributed management structure, with operation centers around the world. It has operation centers in Beijing, China; Raleigh, North Carolina in the United States; Singapore; and Paris, France. It also has a marketing center in Bangalore, India and research centers in Yamato, Japan; Beijing, Shanghai and Shenzhen, China; and Raleigh, North Carolina. It employs 23,000 people worldwide, 1,700 of whom are designers, researchers and engineers. Lenovo and Mexico Since its start, Lenovo has been in Mexico. The liaison began with a sales office made up mainly of former employees of the PC company. Some time later, Lenovo decided to invest in a manufacturing plant in Monterrey, in the northern Mexican state of Nuevo León, that began operating in 2009. That date marked the start of a manufacturing and exporting relationship between Lenovo and Mexico. Why Mexico It’s very simple. “Because of its geographic location, its free trade agreements and the country’s knowledge of foreign trade,” said Enrique Fernández, general director of Lenovo in Mexico. “Nuevo León’s state government gave us many facilities so we could invest in the plaza. Monterrey is strategically located so it can serve both the Mexican and North American markets. It also has extraordinary
mexico’s partner lenovo lines of communication and is a great source of qualified workers,” he said. Besides its easy access to North and Latin American markets, Mexico was chosen for another very important reason. The Mexican market is –after Brazil– the biggest in Latin America for the personal computer industry. With an investment of 40 million usd, Lenovo’s plant in Monterrey is the company’s first manufacturing center on the American continent. It is located in a building that measures 24,155 square meters and sits on an area that stretches over 6 hectares –leaving open the possibility for future expansion. The facility produces desktop computers, workstations, laptop computers and servers. The plant has an annual production capacity of 5 million units. Its activities include the manufacture and configuration of products, distribution with added value and customer service. It directly employs 1,450 people and is responsible for indirectly employing about another 1,000 from the region. A question of strategy At first, Lenovo Mexico’s most important clients were large global companies and government institutions. In the last few years, the company has aimed to broaden its market. “We are looking closely at medium and small companies that most of the time get their products from traditional distributors or from retail stores...And one of our biggest goals is to reach the consumer market, specifically the home sector,” Fernández said. But one of the peculiarities of the Mexican market is that many companies like to buy their products from retail stores where customers typically buy things for their homes: price clubs or office supply stores. Another distinctive characteristic of the national market is its preference for quality brands. Mexicans like buying brand name products. “The Mexican citizen looks for the best product –the brand name product– that he or she can afford to buy. It’s a characteristic trait that cannot be found with such intensity in any other Latin American market,” Fernández said. Facing the crisis Lenovo is dealing with the current financial crisis thanks to a worldwide restructuring, which is expected to help the company save up to 300 million usd during this fiscal year. In Mexico –where it values its pragmatic and frugal way of doing business– the company has focused on keeping all of its employees while it looks to efficiently capitalize on the opportunities the national market offers. “Our offer has contributed to the reduction of costs, not only in the price of acquisitions but also in the operation of equipment,” Fernández said. “Our way of buying machinery, our use of energy and heat generation and conservation is the most competitive in the market. In the long run, it reduces operation costs.” The company’s directive affirms that this has allowed Lenovo to navigate through the storm, continue capitalizing on opportunities and has let it move ahead. On a slow but firm pace, it continues with the intention of creating a long lasting brand in Mexico and the rest of the American continent. Local and global: a glance to the future Lenovo’s future is focused on two points: expansion on a national scale and assisting individual markets on a global scale. Lenovo Mexico is looking to build distribution and value chains through relationships with consultants, marketing agencies and software companies. This will allow the company to reach the entire country and all segments of the market. “It’s an expansion project so we can participate in market segments where we weren’t before,” Fernández said. “The first steps are modest but firm. We are sure that when the economy rebounds, we will be on the crest of a wave.” Worldwide, Lenovo has focused on two important market segments: emerging markets and developed ones like Canada, the United States and Europe. Countries like Mexico and Brazil make up a sui generis group, on horseback among many types of markets. “We have a special category and we have decided to invest in this segment,” Fernández said. n Lenovo’s Worldwide Sales (2008-2009 fiscal year, by region) China 1.2 billion usd (43.6% of global sales) America 682 million usd (24.6% of global sales) Europe, Middle East and Africa 591 million usd (21.3% of global sales) Asia Pacific (excluding China) 291 million usd (10.5% of global sales)
Page 1 and 2: Report Mexico-China, Intense Cultur
Page 3 and 4: offices abroad ProMéxico Headquart
Page 6: 6 Negocios From the CEO. More of Me
Page 9 and 10: usiness tips ligence Unit (EIU), th
Page 11 and 12: dairy Lala, increasing its presence
Page 13: iefs. Construction Pemex to have a
Page 17 and 18: eport apec connected to the securit
Page 19 and 20: mexico’s partner hutchison port h
Page 21 and 22: mexico’s partner hutchison port h
Page 23 and 24: eport asian invasion
Page 25 and 26: Asian Invasion Welcomed THE FREE TR
Page 27 and 28: article solar energy
Page 29 and 30: article solar energy On the previou
Page 31 and 32: article intertraffic checking the c
Page 33 and 34: eport mexico-japan 2005, this has a
Page 35 and 36: eport strategic Alliances companies
Page 37 and 38: mexico’s partner Otm in different
Page 39 and 40: mexico’s partner Otm MAIN CHINESE
Page 41 and 42: Op. 42 The lifestyle T h e C o m p
Page 43 and 44: Interview Bernardo de niz every day
Page 45 and 46: Interview Bernardo de niz
Page 51 and 52: eport 4oo years of relations mexico
Page 53 and 54: The Lifestyle briefs ecology Monteb
Page 55 and 56: The Lifestyle briefs arquitecture M
Page 57 and 58: art dr. lakra
Page 59 and 60: eport mexico-china cultural exchang
Page 61 and 62: article unam Founded in 1910, Unive
Page 63 and 64: feedback instituto carso de la salu

ASiAn invASion wElcomEd - ProMÃƒÂ©xico

Create successful ePaper yourself

Delete template?

Save as template?