Lenovo and Motorola seem to have encountered a lot of problems. In China, Lenovo is actively challenging Xiaomi. It is said that Lenovo and Motorola's business may merge. Could it be that Lenovo lost patience with Motorola? Sometimes, you have to think about past decisions before you can actively adjust and let yourself stand in a better position to achieve future success. Now Lenovo and Motorola seem to have reached a crossroads.
At the end of October 2014, Lenovo finally completed the acquisition of Motorola. At that time, Lenovo had a very high goal and wanted to do something in the smartphone industry. Lenovo CEO Yang Yuanqing talked about this goal in an interview in November 2016: In 2017, Motorola will become the top five smartphones. In 2017, the smartphone division will turn losses and has been losing money in previous years.
In the fourth quarter of 2017, Motorola sold more mobile phones, up 39% from the same period in 2017, but only 3% of the global market. So far, it can only rank 8th, look at Huawei, Xiaomi, Oppo, Vivo, they occupy 3-6, it is obvious that Lenovo can not be satisfied with the current results.
This year, Xiaomi Oppo in the smartphone market has brought a lot of pressure on Lenovo. After Xiaomi gets new funds from the IPO, it will expand into the international market. Oppo seems to want to return to the European market, because from the LinkedIn information, Oppo has placed employees in Europe. Oppo belongs to BBK Group, Vivo and OnePlus are also BBK brands, BBK promotes three brand strategies, targeting different markets and different groups.
Yang Yuanqing also suffered a lot of pressure. The PC and notebook market has stagnated. In Lenovo's three years of leadership, Motorola has not rushed into the top five. What's worse, it can only watch Xiaomi climb to the third place. Yang Yuanqing must fight back.
Lenovo's biggest rival is not Apple Samsung, but XiaomiSamsung and Apple are Lenovo's unreachable rivals. Lenovo wants to compete with Xiaomi. At present, Xiaomi takes the fourth place and grows rapidly. It is completely understandable that Xiaomi is not just a smartphone brand, but also competes with Lenovo on other products. Smart homes, notebooks, VR/AR, all compete, and smart phones are the most dazzling, and the two companies have to compete for share.
The vice president of Lenovo Mobile China posted a part of the new mobile phone, which has the highest screen share. The new phone will be launched soon, and the screen covers 95% of the front of the phone. In the last paragraph of the post, Lenovo revealed the meaning of challenging Xiaomi.
From the post it is not possible to assert that Lenovo is rethinking the global mobile strategy. However, news from Indonesia said that Lenovo intends to form a division called PC, Smart Devices (PSCD) and Mobile Business Group (MBG), called Intelligent Device Group (IDG). COO Lanci leads.
Before joining Lenovo, Lanci was the CEO of Acer. At the end of 2011, he jumped from Acer to Lenovo. Under the leadership of Lanci, Lenovo became the largest PC manufacturer, surpassing HP and Dell. Lanci promotes a dual brand strategy. Under his leadership, ThinkPad became a business notebook, and Lenovo's own brand targeted the consumer market. After the unified camp, Lanci will lead the smartphone business.
Extend the ThinkPad strategy to smartphones?It sounds a bit familiar, because Lenovo used to sell smartphones around the world for a while, using the Motorola brand. There is no obvious difference between Lenovo and Motorola phones. When it comes to Lanci, the situation may change. Motorola is very strong in South America, and entry and mid-range phones are selling well. It is the Brazilian Sérgio Buniac who is now in charge of Motorola's mobile business.
From the news and personnel changes revealed by the leadership, it seems that you can see the future of Lenovo and Motorola.
Speaking of smart phones, Lenovo has launched a dual-brand strategy. Although the division is not very clear, in the low-end market, Lenovo is the dominant mobile phone, and Motorola is targeting the high-end market. Under the leadership of Lanci, under the leadership of Lanci, I believe that Motorola's business will cover from the entry to the higher mid-market, with some successful products, such as G, E series mobile phones. Maybe there will be X series phones, and soon the Z series will be available.
Lenovo can't give high-end mobile phone market to Huawei, Xiaomi, BBK because they are also Chinese brands. If you surrender to the opponent in the mobile phone market without a hit, the loss will definitely be great, and Yang Yuanqing may soon step down. Yang Yuanqing is definitely not willing, so he will continue to make progress in the stagnant PC market and seek rapid growth. At the same time, he will compete with Huawei, Xiaomi and Oppo in the smartphone market.
I talked with Motorola representatives about my ideas. Lenovo General Manager Lars-ChrisTIan Weisswange stressed that Motorola has been growing since Lenovo’s acquisition. This is undeniable, and the company hopes to continue to provide all-round product.
I also contacted Lenovo and they sent a statement:
"The new IDG department: Today, Lenovo announced that the mobile, PC, and smart devices divisions will be merged into a new IDG department. With the new architecture, we can further optimize our human and financial resources and fully access consumer devices. Markets, effectively use our global supply chain to improve operational efficiency. We believe that if we can further collaborate with each other, we will definitely create a better end-to-end solution for consumers. This change will not affect the Motorola architecture, Sergio Buniac remains the president of Motorola Mobility and continues to be a member of the Lenovo executive team. Sergio Buniac and the entire Motorola team will continue to increase profit margins, create sustainable growth for shareholders, build a successful business, and design for millions of consumers around the world. smart phone."
In my opinion, Lenovo and Motorola's smartphone strategy must be adjusted. How to adjust? With a lot of choices, a dual brand strategy should be viable. After all, the Motorola brand will not disappear, but will become more diverse and provide more choices. After the competitiveness is enhanced, you can bring more innovative products.
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