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The influence of traditional Chinese value on an international Chinese IT organization
Author(s)
Date Issued
2017
Publisher
London: Cambridge Scholars Publishing
Journal
ISSN
2058-2943
Citation
Journal of China Marketing, 2017, vol. 6, pp. 67-82.
Type
Peer Reviewed Journal Article
Abstract
In this article we will attempt to summarize the influence of the traditional Chinese value of harmony on an international Chinese IT organization, the Lenovo Group (Lenovo). According to Dell (2016), Dell has overtaken HP in the US PC market. According to Lenovo's 2015-16 Annual Report, Lenovo still successfully maintains its position as the worldwide PC market leader in terms of the number of PC shipments (Lenovo, 2016). Lenovo has used effective acquisition strategies and has upheld its Shared Value (SV) in China so as to polish its worldwide image (Marquis & Yang, 2014). The particular SV adopted by Lenovo is actually borrowed from the Chinese value of harmony. Porter and Kramer (2011) suggested the strategy of Shared Value: i.e. harmony is very different from CSR in terms of differentiation. By maintaining its position as market leader, Lenovo has gone through varied phases of evolution and even disruptive innovation. The Chinese value of harmony is related to adjusting oneself to nature but not triumphing over it (Yau, 1994). To secure a healthy position, Lenovo has had no choice but to continue focusing on its IT devices-i.e. PCs, notebooks and tablets-that have a competitive edge over its closest competitors. The Chinese value of harmony can also create and deliver added long-term value to Lenovo's stakeholders so that it can maintain the sustainability of its IT kingdom. In this business case, first, the conventional strengths of Lenovo and its direct competitor, Dell, are discussed. Second, the challenges of Lenovo are explored. In addition, the cut-throat price war and worldwide expansion of Lenovo in the IT industry are described. Further, the Chinese value of harmony is explained in detail with respect to Chow's (2007) model of comprehensive harmony. Lastly, this case provides recommendations for teaching methodologies to the practitioners or teachers i.e. SWOT analysis, OBTL objectives and some tutorial questions for discussion in the class.
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