I have a dream yesterday, the content of which is about the deal of personal computer business between Lenovo and IBM. I have defended Lenovo on one of my classes. I told the audience that Lenovo would not depend on IBM's brand because it is only awarded the five-year usage of the IBM PC brand. The time is so short that Lenovo can't benefit from developing it. Instead, Lenovo will develop its own brand overseas, I said in my dream. IBM has the best sales people and resources, which can be made full use of by Lenovo. Then I woke up. I don't know why I was so excited in the dream to defend Lenovo. If I can assume the reason, it should be one, the deal itself made me excited.
It should be a tought deal as predicted by Michael Kanellos from CNET. But there's an assuming before his article, which is teh failure, or in another word, unsuccessful fact of the merging between HP and Compaq. Are the two deal same? Of course not. If we had the chance to look at the customer list between HP and Compaq, we would see the duplicate names definitely. But there will be much less same name between IBM's customer list and Lenovo's. The customer is the most important part bought by Lenovo. In the PC industry where profit rate is so low and technology is almost same, Lenove can't find its advantages to fight with HP and DELL. The deal with IBM is the best choice to expand its market to overseas.
DELL, definitely, could look down upon Lenovo, just like an adult facing a teenager. But what he can't miss is another adult, or senior citizen, behind that teenager, which is China. Globalization made the deals not simple as the ones in the old days. Product itself will not be the vital factor in the deal. Bilateral realtions is going to be replaced by multilateral ones and the negotiations are more complicated than ever before. Lenovo spends three years to plan today's deal. It can still wait, but the time schedule is just right now. Chinese economy is the hottest in the world, where all investers are eager to enter into it. It is the best time for the national company to extend its warrior.
Problems such as employee, and enterprise culture, might exist for a long time. That is risk that Lenovo should take. A Chinese old prediction is " if you want to win a war, you should have three advantages which are the weather, geography and human." Lenovo takes advantages of the first two, and human will be its last problem to succeed in the war.