Lenovo Group Limited (ADR) (OTCMKTS:LNVGY) is celebrating the success that it has achieved in the ten years since it bought into International Business Machines Corp. (NYSE:IBM).
The computer company has performed remarkably well since the acquisition despite the negative criticism that the company received at the time. Lenovo reported that the purchase has been largely significant in its success within the ten-year period. However, the company officials admitted that they had been skeptic about the purchase as they were not entirely sure that it would hold up. However, the last few years have proved that Lenovo has a strong presence and influence in the computer industry.
Lenovo was lucky to have succeeded with the IBM buyout. Critics had stated that the company would crumble with the weight of expectations plus the business would be too hard to handle. Some suggested that the company would have to restructure in order to keep up with the competition. Luckily Lenovo played its cards right and became the competition.
A few other companies tried out Lenovo’s strategy but ended up failing. A good example is TLC and BenQ’s attempt to purchase the Alcatel and Siemens brand. The two ended up failing. Lenovo’s path was however not a smooth sail. The company did, in fact, have to restructure in order to integrate itself fully into the international PC market.
Despite the tough road the company has had to endure, it managed to gain a solid status in the computer industry. It has become a recognized brand competing with industry giants such as Hewlett-Packard Company (NYSE:HPQ). Additionally the company was able to make other minor acquisitions that have been significant to its growth process within the ten years of operation.
The company is not however convinced of its performance out of the PC industry. The computer empire decided to venture into the mobile device trend by introducing mobile devices such as tablets and Phones. Lenovo has however not been able to make a significant stand with the mobile devices.