Lenovo Group has announced it will expand its geography organisation targets from three to five, including the establishment of Lenovo India, in a series of plans unveiled in an effort to integrate global operations and drive growth.
The group will unify its global computer products and product marketing activities in a new product group, which will develop and manage all Lenovo, Think and IBM-based Lenovo computer products worldwide.
Furthermore, Lenovo revealed it will combine all elements of its supply chain into a new global supply chain organisation, led by SVP/COO Liu Jun, formerly SVP/COO at Lenovo China.
The Chinese PC giant has said it aims to grow at twice the industry growth rate in the next five years, and has announced it expects to expand its share of China’s competitive PC market to 35 per cent by the end of the year from its current 32 per cent.
Yang Yuanqing, chairman of Lenovo, revealed that growth for the China-based group would be fuelled by a focus on developing markets, and that a possible move to other markets in the future would help make it "the most competitive PC company and the best PC brand in the world".
Lenovo Group has posted a 6 per cent rise in Q1 profit, including in its accounts for the first time the IBM PC assets that were acquired in May.
The company’s shares initially dropped following the deal, but investors have since grown in confidence, with shares soon hitting new 52-week highs.
But Yuanqing told investors not to expect rapid growth following the purchase of IBM’s struggling PC assets, while it focuses on investing in long-term success.