Lenovo Case Study Analysis Report

Question: Discuss about theLenovo Case Study Analysis Report. Answer: Introduction PESTEL Analysis of Lenovo in India: The analysis of the external macro environment includes five factors. Political factor: In India, Lenovo has developed a significant share of market through huge orders to government agencies and large companies .The political surrounding of India is highly affected by interest of the politicians, policies of government and various political party ideologies. Hence these political factors (multivariate) affect the business environment of Lenovo in India as there is no specific political factor. Economic factors: The market share of Lenovo in India presently 18.1% (Service 2015). The formation of Professional international business certification, reduction in licensing of industry and foreign capital liberalization has improved the economic environment of India. There has been a substantial rise in GDP which made business of Lenovo more favorable in India. Social Factors: The social factors have considerably affected the business environment of Lenovo in India. The ever increasing population of India includes 70% of the population in the age group of 15-65 years. Hence, this can affect the business of Lenovo directly as there is an ever increasing employment of the older workers. The ignorance of religious convictions, beliefs and festival difference between individuals can lead to huge losses for a company like Lenovo in India. The consumer demand for electronic gadgets is rising which is enabling a boost to the sale of Lenovo products in India. Technological factors: In the present times, technology is advancing rapidly in India which is leading to the innovation of modern gadgets by companies like Lenovo which is boosting the business of the company immensely. Legal factors: India always made continuous efforts to facilitate and liberalize trade of Lenovo. However, the tariff regime of India is complicated with the average rates of duty tax going up considerably over the past five years. The tariff rate increased to 13% (2014-15) from 12% (2010-11) which is creating a negative impact on the business of Lenovo in India (Hasan 2016). References: Hasan, M.M., 2016. Marketing Analysis of Fila.Total Quality Management,11, p.13. Service, I. (2015). Lenovo Targets 20% Market Share, Eyes For Top Spot In Indian PC Market. [online] News World India. Available at: https://newsworldindia.in/business/lenovo-targets-20-market-share-eyes-for-top-spot-in-indian-pc-market/126550/ [Accessed 30 Sep. 2016].