Abstract
The Chinese PC market is, behind the US, the second largest market in the world.
With its 1.3 billion inhabitants and an expected market growth of 19%, the Chinese PC
market is probably one of the most interesting emerging markets.
While the local companies were very strong in the past, they now have intense competition with the western giants that have entered the industry. The market leader is still the home-grown Chinese company Lenovo, which got globally well-known after the acquisition of IBM's PC division. Now in 2008, one of its most aggressive competitors is the famous American
company Hewlett-Packard which is the No. 1 in the global market. With its new products, HP tries to gain new market shares in China and compete against Lenovo in its own market, while it has just started acting globally. Whereas, Lenovo has excellent market knowledge and a tough low cost advantage, HP
has universal experience in technology and advertising and a high brand recognition.
Where some years ago the focus was on the corporate and governmental market in China, the consumer market is now rapidly growing. Especially in larger cities, where incomes are higher, lie new opportunities.
Although HP and Lenovo have a slightly different positioning in the market, they are both trying to 'win the race' in the mass market.
This report compares the two rivals, Lenovo and HP, in the Chinese market and analyzes the industry, the companies and their marketing strategies. The aim of our research is to provide information about the Chinese PC Market for present and future companies with recommendations based on the different opportunities of the market.
In order to create a complete overview we started with a detailed analysis of the Chinese PC market (SLEPT, 5-Forces, Market shares and Segmentation). Sequentially, we compared HP and Lenovo according to their marketing strategies and their performance in the market (SWOT, Targeting and Positioning).
Finally, we presented our concluding analyses and our recommendations to the companies that
contained the essential ideas of our work.
