Capability Accumulation and the Growth Path of Lenovo (Zhongjuan Sun, Wei Xie, Kuanrong Tian, and Yanyu Wang)
Lenovo Group is the leading IT companies in China. Since its acquisition of IBM’s Personal Computing Division in 2005, Lenovo is the 2nd PC provider in the world. Founded in 1984 by eleven computer scientists in Beijing, China, as the New Technology Developer Inc., it was soon renamed as Legend and started a new era of consumer PCs in China. In 2004, aspiring to expand its business globally with a more global-like brand, the company changed the brand name “Legend” to the “Lenovo”, taking “Le” from Legend, and adding “novo” the Latin word for “new”, to reflect the spirit of innovation as the core of the company. The current CEO, Yang Yuanqing joined Lenovo in 1989 as a salesman, and rose rapidly through its ranks to CEO in 2005. In less than three decades, with his predecessor, Liu Chuanzhi, Yang Yuanquing has spearheaded Lenovo’s ascend to its current position (Kirkland and Orr, 2013). We try to answer the question on how have Lenovo achieved such a prominent success in less than three decades. In this paper we drew the concepts of entrepreneurship and capability accumulation to explain the competitive strategies adopted in the growth path of Lenovo.