What Does Lenovo Buy From Founder?

Recently, with the resignation of Fang Dongfeng, President of Founder Technology, there are various conjectures about the future of Founder Technology in the industry.

Among them, the acquisition has become the focus of prediction.

In this regard, insiders believe that Lenovo's acquisition of Founder should be a win-win outcome.

According to the author's understanding of the PC industry, this prediction and analysis really disagree.

According to the industry's point of view, Lenovo chairman Yang Yuanqing stressed on several occasions that we should continue to improve Lenovo's PC scale through mergers and acquisitions, so that Lenovo should buy founder.

But anyone who knows a little about Lenovo and Yang Yuanqing's style of action will know that the M & a referred to by Yang Yuanqing is more targeted at the overseas PC market.

The implication is that Lenovo Lenovo is the target of Lenovo's entry and promotion of overseas PC market share if it is applied again.

Lenovo's efforts to acquire PB and Lenovo, which was widely rumored in the past few years, is an obvious example of the acquisition of Fujitsu SIEMENS.

From this point of view, Lenovo's acquisition is no significance for Lenovo to expand and enhance the performance of overseas markets.

The reason is very simple. Founder's PC market in China is already stressful. This is not the same as before. What's more, Fang's influence in the overseas market is even more critical. For Lenovo itself, it is also faced with the task of upgrading its new brand IdeaPad and IdeaCenter overseas. The final result is still full of variables.

As for M & A, it has no meaning for Lenovo to enhance the overseas market (which is also the ultimate goal of Lenovo's internationalization).

So, is it true that the industry's claim that M & A is helpful for Lenovo in the domestic PC market to contain HP, DELL and Acer attacks and guarantee the Lenovo base of China's PC market?

In fact, from Lenovo and founder's business in China's PC market, both sides' advantages are in the procurement of government and industry.

This means that if Lenovo's acquisition is founder, it will not only enhance the share of Lenovo's PC market in China, as it is predicted by the industry. It is possible that the two brands of Lenovo and founder are squeezing each other in the sales of China's PC market. The final result is to create confusion for users and give competitors opportunities, and Lenovo and founder are likely to lose their existing customers.

In addition, from the perspective of channels, Lenovo and founder also have a small coincidence.

So when will the channel sell Lenovo's PC or founder, which brand of PC will profit the most?

How to balance the relationship between the two brands in the channel is a challenge for Lenovo.

In addition to business and channels, look at the brand.

As Lenovo launches its own IdeaPad and IdeaCenter brands, Lenovo will face a key pition from existing brands and new brands. At this time, in addition to the N brand name, how should it locate and distinguish its own brand and square brand?

How does a brand product in the same market allow users to choose?

I am afraid the best result is either to choose Lenovo or to choose founder, but the total volume of shipments may not be substantially increased.

According to the popular saying, it is holding one side behind one's back.

When it comes to shipping volume, you have to say market share.

According to the industry's point of view, Lenovo's acquisition will enhance Lenovo's share in China's PC market.

This simple 1+1=2 rule is very puzzled by the author.

From the perspective of Lenovo's PC market share in China, it is far ahead of founder.

As for Lenovo's decline in China's PC market share, in addition to external competition, Lenovo itself has a great relationship with product positioning and market strategy. If the problem is not solved, it will be useless to buy the founder.

So M & A has no direct impact on the decline of Lenovo's PC market in China.

In addition, from the growth of the PC market in the future to the notebook which is increasingly facing the consumer market, Founder business is its biggest weakness.

According to IDC statistics, the mainland notebook market capacity in 2007 was about 7 million 500 thousand units, while Founder notebook accounted for less than 300 thousand units, accounting for only 4%. From the scale of shipment, founder has fallen into the third echelon like Haier and TCL.

In terms of gross margin, Founder computer was 5.46% in 2007 and Lenovo was around 15%.

Therefore, from the volume of shipments, Lenovo's acquisition is basically of no significance to Lenovo. On the contrary, Lenovo's low gross margins will not only help Lenovo but also drag the association's Lenovo after Lenovo's increasing attention and desire to raise gross margin.

From this point of view, M & a founder is extremely dangerous for Lenovo.

Finally, from the perspective of integration, founder PC has been reduced to the present stage. Apart from the power struggles in Fangzheng, which has been rumored in the past, the undeniable fact is that it has a lot to do with its internal unrest in the development of PC business.

As is known to all, Founder Technology is different from Lenovo. It takes the road of diversification. Although diversification can be made up by other businesses when a business is declining, the negative impact is that it can not be absorbed. Instead of focusing on it, it is a waste of manpower and material resources as well as continuous abandonment and continuous abandonment, which has caused the embarrassment of founder PC today.

At this point, the acquisition of founder PC, the difficulty of integration is unlikely to be easier for Lenovo than the acquisition of a foreign PC manufacturer. Moreover, Lenovo's IBM PCD has not yet been fully digested. Instead of adding an integration burden to itself, it is better to integrate the IBM PCD in place and give full play to its potential, which is far more significant than that of M & A for Lenovo internationalization.

From the above author's brief analysis, connecting to the present and future Lenovo's situation and strategic objectives, the author thinks that if Lenovo is really like the industry insiders, it will be unwise or even dangerous to buy the founder.

Lenovo should also speed up its internationalization process through its own efforts. If it is not for M & A, it should also be cautious.

As for Fangzheng, let's go all the way, like script src=>.