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Lenovo’s Acquisition of IBM PCs – Part Two: How the “Chinese snake” digested the “American elephant.”

A change of leadership is behind Lenovo’s successful integration of IBM computers

In 2005, Lenovo bought the PC business of US technology giant IBM. It began its integration efforts in the midst of disputes over leadership. The new group was originally headed up by a foreign CEO until senior Chinese managers returned following the financial crisis and regained core management positions. This change of leadership has been behind the PC maker’s ability to shake off its loss-making position. Why did Lenovo undergo these strategic twists and turns? How does Lenovo summarize the path taken and the lessons learnt? What can other Chinese firms undergoing their own M&A integration phases learn from Lenovo’s experience?

Case advisor: 
Xiang Bing
Case writer: 
Zhou Yi and Yang Guchuan
M&A, integration, technology, leadership