International Marketing Essay Example | Topics and Well Written Essays - 3750 words

transnationalist Marketing - Essay Example2.0 The features indicating achievement of global brand status Quelch (1999) provides a benchmark for the seven-spot characteristics of a brand that are prevalent when a business has achieved global brand status. This is inclusive of intensiveness in the home mart, having a geographical balance in sales, the ability to address homogenous consumer of necessity worldwide, maintaining consistent brand positioning, reducing the country-of-origin effect, the specific product category focus of the firm and corporate name. This instalment of the report examines the extent to which Lenovo maintains appropriate emphasis on the aforesaid benchmark criteria for advancement to a decriminalize global brand. Lenovo must maintain all identified characteristics in order to be considered a schoolmaster in becoming a genuine global brand. 2.1 Strength in the home grocery store In 2011, China contributed 46 percent of total business revenues with all s upplemental sales stemming from combined international markets and emerging markets (Lenovo 2012). China is considered the largest personal computer market in the world and Lenovo has managed to amplification its market appoint in this highly competitive technology market. Much of this success is due to a contracted 2011 strategic alliance with Compal Electronics that significantly increased Lenovos production capabilities. Through dual investments by Lenovo and Compal, totalling $300 zillion each, a new production facility was built from the ground up in Hefei, China that exploits the talents and resources of twain partners to economise faster output and more frequency of innovative products (Lenovo 2011). The Chinese personal computer market is projected to achieve a growth rate of three to four percent in 2013, which is largely driven by rural consumer demand for desktop computers (China.org.cn 2013). Whilst the rest of the developed world, such as the fall in States, has seen declines in demand on personal computers as consumers defect to more agile mobile deliberation opportunities, Lenovo operates in a market where rural consumers are witnessing more government investment into infrastructure improvements in rural regions that are increasing personal incomes of rural consumers (China.org.cn 2013). The rural consumer sector is a major market segment within a national population volume of over 1.34 billion consumers (News Limited 2013). Lenovo was actually adept in establishing a joint venture with Compal in order to expand the ability to deliver faster production output to the rural regions within China whilst demand for desktop and laptop computers are experiencing growth with a variety of target segments. Lenovo also participated in a government subsidy chopine designed to give rural consumers less-expensive personal computers which assisted Lenovo in achieving a $1.7 billion USD sales increase in the country (Hille 2009). Lenovo recognises app ropriate opportunities to expand its brand presence and hence improve its brand quotation in China. The Chinese government is imposing a variety of new programs to facilitate more economic growth and improve the labour environment within the nation. By engaging appropriate political forces to hold the Lenovo brand to be associated with a nationwide initiative to modernise rural China,