Lenovos Nature of Demand free essay sample

Abstract In recent years, despite fierce market competition the personal computer manufacturing company Leno has utilized unique competitive strategies to achieve a rapidly increasing share of the computer and notebook market. Leno is faced with unprecedented opportunity and the challenge and in view of the current market situation, Leno is delivering a message that it intends to cover all market segments, from high-end to low-end. Pricing objectives should flow from and fit in with company level and marketing objectives. Additionally, pricing objectives should be explicitly stated because they have a direct effect on pricing policies as well as methods used to set prices. Leno has established and implemented a successful and complete marketing strategy by utilizing appropriate marketing channels and promotions to target its products to different markets world-wide at a competitive price. Based on different levels of consumers, Leno has developed differentiated products with different prices to cover all market segments effectively. We will write a custom essay sample on Lenovos Nature of Demand or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This differentiated pricing and marketing strategy not only helps Leno to build its rake share world-wide but also maximizes its profits. Nature of demand Leno, the worlds second-biggest maker of personal computers, posted a 54 percent increase in third-quarter profit orders for office computers and acquisitions in Germany and Japan boosted sales. Today, Leno strives to be the global market share leader in each of the market segments that the company currently focuses. Lenos shipments of smartness in China grew four times last quarter. Revenue in Lenos mature-markets division which includes operations in the U. S. , Japan and Western Europe, Jumped 81 percent to $3. Billion. Leno is considering acquisitions to accelerate growth and the company expects to grow its business faster than the overall PC industry. After delivering overachieving laptops, Leno has delivered financial results that also exceeded expectations, producing $8 billion in revenue and $141 million net profit. Large percentage of growth came in part from a 59% sales bump in emerging markets like China, India and Brazil, on top of a 9% growth in its home (US) market. Overall, Leno saw a 24% increase in PC shipments for the third quarter in 2102 world-wide. In addition to PC and laptop market where Leno has enjoyed continued growth, recently Leno has also become the second largest player in Chinas semaphore market, after Samsung, now up controls a commandingly% market share. Price Sensitivity In the 21st century, the production capacity of IT enterprises seriously exceeds, and the price war among manufacturers has become worse. As a large and a key player in the IT industry, Leno is impacted by price wars. However, Leno has demonstrated most vividly and is least impacted by price wars as Leno did not reduce price, while the corporate image enhanced, sales grew and market share expanded, the effective pricing strategy has enabled Leno to exceed in the every market segment that the company currently target TTS. Price sensitive conditions exist in countries such as India, Indonesia and Philippines. These target markets have been very price sensitive and the pricing of Lenos products are key factors for the company to establish itself in these newly emerging economies. Unless they offer some serious innovations and an attractive price tag for their phones tablets, Lenos future especially in the semaphore domain will be uncertain in these price insensitive countries. One of the ways to go about it could be to position the launch of their smartness in sync with the rivals and clearly sending out signals that the company is at par with other players in the market. Substitutes In recent years, Leno has utilized unique competitive strategies to achieve a rapidly increasing share of the computer and notebook market. Leno has a fierce market competition from the major IT firms like Dell and Hewlett-Packard. Leno continues to optimize its marketing strategies for competing in a market previously dominated y major players like Dell and Hewlett-Packard which accounted for 54% and 21% of the international corporate market. Lenos pricing strategy is in accordance with its customer needs and is focused on developing best performance products, at an affordable price to its customers. Additionally, the company focuses on improved customer service experience which maintains a strong customer relationship. Over the past several years, this unique concept of exceptional customer service program gave Leno its core competitiveness and Leno is still invincible in the fierce competition. Demand and Cost Analysis Leno designs and develops products that have relatively simple functions, relatively low prices based on needs of various markets worldwide. Leno utilizes new technologies and sophisticated analytics not only to make its supply chains more responsive to customer demand, but also actively to shape demand towards more profitable business. Various demand driven networks enable Leno to provide flexible pricing, sales incentives, promotions and other marketing tools to stimulate demand for its products. This holistic approach requires improved demand based on ales data, integration of new forecasting and demand management tools with existing supply and a collaborative approach to sales and operations planning in order to maximize profitability. Since its inception, Leno has built its success on product innovation, a highly efficient global supply chain and strong strategic execution to deliver consumer centric innovative products that deliver a blend of mobility, performance and price. Markup Chain within the channel Markup chain is the sequence of markups firms used at different levels in a channel that determines the price structure in the whole channel. Leno uses a standard markup percent and then applies it to all their products which make the pricing easier. Leno markup it products based on their standard operating expenses, customer price sensitivities and other factors, and still provide a reasonable profit to the company. Recently, Leno has attended I TTS decision ton t local Australian buyers with an almost 60 percent mark up on its latest ultrasound, the Carbon XSL. A Thinking XSL Carbon in Australia, costs a $750 premium for the same device as compared to US counterparts. It costs $1999 in Australia and $1JS1299 in North America and it sells through Lenos web portal as well as distributors like Keynes, Ingram Micro and Dicker Data. According to Leno director of products and solutions, the price difference is due to a number of factors including Australian warranty provisions, margins, channel and support. The Leno Carbon XSL is a great looking ultrasound but only time will tell whether Australians would be willing to pay such a huge premium. Price Flexibility Leno offers a wide range of products so there is a great deal of price flexibility with its products. Their portfolio provides flexible options to meet either personal or arable business needs based on market type. Leno not only uses differentiation strategy by persuading customers that a product is superior to that offered by competitors but also uses a focus strategy that is aimed at a segment of the market for a particular product rather than at the whole market. They offer a worldwide single source solution which helps them lower service costs, as well as provide an improved customer service experience without compromising quality and customer satisfaction. Leno offers differentiated products with a price discrimination based n different levels of consumers. This diversification of its products has allowed Leno to provide flexible pricing options to its customer base world-wide. Price Adjustments Leno has established a pricing agreement with schools that provides students with the ability to purchase hardware (laptops, desktops) at a significantly reduced cost. If you are a Leno faceable fan youd be one of the first to know about new products, sweepstakes, and more. Leno also offers limited time monthly e-coupons along with daily, weekly, and monthly hot deals on various websites. Lenos Affinity program offers organizations a solution for Employees, Students, and Members to purchase Leno PC products, accessories and options directly from Leno at discounted prices. Additionally, Leno uses promotions in the form of coupons, instant savings, and online rebates to directly influence it customers. Conclusions Leno started from a small factory to now being one of the worlds most influential brands, exporting its products to over 100 countries and regions world-wide. Lenos strong brand names makes Leno perform well in the market world-wide.

impartial analysis of management accountant

impartial analysis of management accountant An impartial analysis of overall operations can tell you yes or no.How do you know if activity-based costing (ABC) would be right for your company? There's an objective way to decide before your company takes the plunge. For ABC to be effective, a majority of all costs incurred by a significant unit of a business must be analyzed systematically. These costs include not only most fixed and variable factory burden costs, but also some fixed and variable marketing and administrative costs. Implementation of ABC requires a complex, comprehensive process that is costly and time-consuming, so naturally managers would want to be assured of the advantages before embarking on the implementation of ABC.The potential benefits of ABC can be analyzed in advance along two separate dimensions. The first is based on the probability that, in a given application, ABC will produce costs or other results that are significantly different from ones that could be generated with more conventional or less co stly methods.English: an ABC in MukahThe ABC-generated costs may or may not be "better" or more accurate, but they are different in amount. The second dimension of the model seeks to establish that, given that cost information generated by ABC is indeed different, management will use it for significant decisions. Managers must regard ABC information as superior, and the nature of the organization and its competitive, legal, and social environments must allow managers to use the information freely.The factors involved in the first dimension include the number and diversity of products or services produced, the diversity and differential degree of support services used for different products, the extent to which common or joint processes are used, the effectiveness of current cost allocation methods, and the rate of growth of period costs. The factors involved in the second...

Imperialism Dialogue (see instructions) Essay Example | Topics and Well Written Essays - 1000 words

Imperialism Dialogue (see instructions) - Essay Example You can see that minority populations face at the hands of our government on the basis of imperialism and they have endured for centuries (Zwick 59). We can become a support for them by enabling them to gain freedom. The people of Philippines and black Americans should not be subjugated; they must have their own lives (Zwick 56). I am against President McKinley’s policies that are imperialist. As far as I am concerned, I do not feel at all that I am anti-imperialist, as I believe that people can be controlled by the help of some governance that is strict. We are responsible for the minorities and it is our duty to give them protection whether it is possible with imperialism or any other way (Bartleby.com 2010). We have conquered the land of Philippines and its people have come under our control. Now, they require our support for their defense. Our national strength lies in the fact that United States of America is an imperialist state (Bartleby.com 2010). United States can become a better state if it handles the islands that surround it as the people that live there are in need of our assistance and support. We as world power have a natural right over controlling the minorities according to our own interest. Mark Twain: Well, I believe that every person in this world has a natural right to live his own life with his own will and with full freedom. We conquered Philippines but we have no right to redeem its people (Titta 1997). Theodore Roosevelt: Mr. Twain, you are highly mistaken my dear. Ruling over the world is not an easy task and countries cannot gain world power if we give freedom to everyone (Bartleby.com 2010). As a nationalist, we have to see the interests of our own state and land. Mark Twain: But, this is colonialism and we are subjugating people only for our own interest. As human beings, we are not authorized to allocate people as superior or inferior. I do not say that we should not fight these people