Innovation key to Lenovo's branding success

A customer walks past an advertising billboard for technology giant Lenovo in Hong Kong. Lenovo's managers have often said publicly that it's the company's goal to be the first Chinese company to achieve global brand status. AFP

Giant of China's computer industry, Lenovo Group Ltd, is once again in the news with United States government approval of its IBM Corp server takeover rumored to be less than a given.

Let's hope that the US government sees through its parochial protectionist eyes and Lenovo's most recent and ambitious acquisition to date sails through the red tape.

But is this current media attention misplaced? Surely with Lenovo's latest corporate takeover it is time to evaluate its international brand-building strategy and suggest necessary modifications?

Lenovo's managers have often said publicly that it's the company's goal to be the first Chinese company to reach genuine global brand status.

Telecommunications industry players Huawei Technologies Co Ltd and ZTE Corp share that ambition.

But unlike its major competitors, Lenovo has adopted an international brand-building strategy characterized by acquisition of established international corporate brands. But it's far from easy. Six out of 10 takeovers fail to meet expectations.

And those takeovers considered a success are often assessed purely on financial performance measures and not brand-building effectiveness.

So there should be much more media attention paid to Lenovo's brand architecture and brand development as a result of its international takeovers.

Lenovo first hit the international acquisition trail in 2005 with the takeover of IBM's personal computer division. This deal, then valued at $1.75 billion, propelled the Chinese computer giant into third place in the global PC industry, behind Dell Inc and Hewlett-Packard Co.

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