While the Lenovo brand came into existence only in 2004, the company has a much longer history. In 1984, Legend Holdings was formed with 200,000 RMB (US$25,000) in a guard house in China. The company was incorporated in Hong Kong in 1988 and would grow to be the largest PC company in China. Legend Holdings changed its name to Lenovo in 2004 and, in 2005, acquired the former Personal Computer Division of IBM, the company that invented the PC industry in 1981.
Today, Lenovo is a US$34 billion personal technology company and the world's largest PC vendor. We have more than 33,000 employees in more than 60 countries serving customers in more than 160 countries. A global Fortune 500 company, we have headquarters in Beijing, China and Morrisville, North Carolina, U.S.; major research centers in Yokohama, Japan; Beijing, Shanghai, Wuhan and Shenzhen, China; and Morrisville; and we have manufacturing around the world from Greensboro, North Carolina and Monterrey, Mexico to India, China and Brazil.
Lenovo has been the fastest growing major PC company for more than 4 years, but we're much more than a PC company. We create a full range of personal technology, including smartphones, tablets and smart TVs. We're the fourth largest smartphone company in the world, and are expanding rapidly to new markets. And we're already #3 in the world in what IDC calls "Smart Connected Devices," which combines PCs, smartphones and tablets.
It's all part of what we call the "PC+" world, where people use PCs as well as a range of smart devices that are, at their heart, PCs. In this PC+ era, a singular focus on outpacing the competition in terms of market share, profit, ranking, etc. is not enough. To be a truly innovative company, we will create new categories of products that enhance the customer experience and differentiate us from the competition. Finding the right balance between these two forces is what we strive to do on a daily basis.
Lenovo's end-to-end business model for vertical integration leverages owned manufacturing capabilities for greater control over both product development and supply chain operations. This model is unique among major PC makers and is a significant source of competitive advantage, helping us to bring more innovation to market, more efficiently, and aggressively attack the PC+ opportunity.
And as Lenovo expands globally, we are establishing even deeper roots in each major market, investing not only in sales and distribution, but also in local domestic manufacturing, R&D and other high-value functions. This global reach with local excellence is enabling us to build a new kind of company - a "global-local" company - and positions us to more deeply implement our protect and attack strategy and build the foundation for long-term success.
Lenovo has consistently outgrown the worldwide PC market in unit shipments and gained market share across all geographies, products and customer segments, making it the fastest growing major PC company in the world for three years running.
Lenovo's business is built on product innovation, a highly efficient global supply chain and strong strategic execution. The company develops, manufactures and markets reliable, high-quality, secure and easy-to-use technology products and services for customers who want technology that does more— because people have a lot more to do. Our product lines include legendary Think-branded PCs and Idea-branded PCs, as well as servers, workstations and a family of mobile internet devices, including tablets and smart phones.
We have a long-term goal of becoming the leading personal technology company in the world. We aspire to achieve this goal by leading in three key areas:
And we want to do it the right way— the Lenovo Way— with our own perspective, our own global point of view and our own commitment to building technology for people who view technology as a tool to accomplish great things.
At Lenovo we view our culture as a critical asset as important as an effective business model. We call our culture the Lenovo Way, and at its most basic, that culture is reflected in the statement: We do what we say and own what we do.
Our values serve as the foundation of our company and define who we are and how we work. Principal among them are:
Lenovo came about as the result of the merger of two of the most storied companies in technology and business: Legend Holdings in China and IBM's Personal Computing Division in the United States. The merger was heralded as a watershed event in global business with the potential for integrating two disparate cultures, languages, processes and markets.
As a result, Lenovo embodies unique market possibilities in combining the best of East and West— joining North American and China-based technology players in the creation of a unified global personal technology leader with growing market positions in developed and emerging markets alike.
Lenovo has developed a core competence in managing acquisitions that it has applied to subsequent mergers and joint ventures. In 2011, Lenovo formed a joint venture with NEC, creating the number 1 PC company in Japan. Later that year, Lenovo acquired Medion in Europe, and is now number 1 in Germany. In 2012, Lenovo formed a joint venture with EMC with regard to servers and enterprise solutions and acquired Stoneware, a cloud-focused software company. In 2013, Lenovo acquired CCE, a leading consumer electronics company in Brazil. What all of these actions have in common is that they have effectively supplemented organic growth and produced new synergies that enhance our overall business.
Everyone at Lenovo takes great pride in our ability to attract top talent from diverse backgrounds, representing a broad collection of nationalities and languages. We view our differences and diversity as a source of strength in building a collaborative culture with one unified language and vision: to build the world's most exceptionally engineered personal technology products and services.
Innovation: A Core Value
Lenovo owns the greatest track record for innovation in the PC industry and remains committed to innovation in its products and technology. We will continue to leverage the spirit of innovation and history of technological breakthroughs into new product categories and drive future growth. Innovation is how Lenovo achieves competitive differentiation and drives new market opportunities, such as mobile Internet, digital home and cloud computing.
Lenovo products consistently win awards and receive rave reviews. They deliver the high quality, reliability and durability to meet our customers' demand. The ultimate goal of Lenovo's R&D team is to improve the overall customer experience while driving down the cost of ownership.
Lenovo operates 46 world-class labs, including research centers in Yokohama, Japan; Beijing, Shanghai, Wuhan and Shenzhen, China; and Morrisville, North Carolina, U.S. Lenovo's innovation strategy is based on a two-tiered approach to solving real-world customer problems:
The company is rich in talent, employing more than 3,200 engineers, researchers and scientists. Lenovo's R&D teams have introduced many industry firsts supported by a track record of innovation— including more than 6,500 globally recognized patents and more than 100 major design awards.
Acquisitions, collaboration with industry associations, and investments in research and development even in down cycles enable us to stay ahead of market trends and deliver a comprehensive portfolio of products.
Lenovo's global scale and emphasis on innovation also give us a degree of visibility regarding the health and well-being of the communities and markets we serve. Through this we are better able to innovate and deliver relevant solutions that address a number of key sustainability measures addressed in this report from climate and energy to environmentally-conscious products, education and employee voluntarism.
Our Commitment to Corporate Citizenship (CSR)
Social responsibility can take many forms and mean different things to different people. Lenovo's viewpoint reflects our unique heritage having roots in both the East and the West. To succeed, we have had to create an entirely new way of doing things. We look at the world and see what it's becoming more than where it's been. We take our role in responsibly shaping the future very seriously, thus we approach corporate citizenship differently. We consistently work to improve, not only our performance and the quality of our products, but how we do business, how we treat our people, the various communities we serve and the environment around us. That means we live up to our commitments and take ownership for what we do. Guided by these principles:
For additional information, please visit Lenovo's social responsibility home page at: http://www.lenovo.com/csr