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Olympic organizers want tried and tested, stable technologies
Yang Yanquing, chairman, Lenovo
Ibrahim Ahmad
Monday, September 17, 2007

As the Olympic fever starts building up in China, the biggest event sponsor, Lenovo, organized a major campaign. It marked the one-year-out for the Beijing 2008 Olympics, that start in August next year. Though no specific spending figures on the Games have been revealed, the marketing managers at Lenovo say that they will deploy over 20,000 pieces of IT equipment including desktops, notebooks, servers, and printers for the games, preparations for which started 2 years ago. Lenovo is looking at this as the biggest opportunity to turn its image from a Chinese company to a global PC player. Members of international media caught up with Lenovo group chairman Yang Yanquing, who shared his views on a range of issues.

Lenovo is the global IT partner for one of the worlds most prestigious sporting event, the 2008 Olymic Games in Beijing. How does it feel?

Sponsorship for the Beijing Olympics has started to pay-off. It is helping us build our brand internationally, a key business objective for Lenovo.

Would you want to sponsor the next Olympics too?
We will be assessing the situation before taking a decision. Cannot answer the question now.

If you have to build a global brand, would Lenovo be looking at regional games such as the 2010 Commonwealth Games in Delhi?
Yes, we will consider them too.

What new technologies are you planning to implement at the 2008 Beijing Olympics?
The organizing committee is very careful about latest technologies. Rather, they want tried and tested stable technologies.

How many machines will you be deploying at the Olympic games?
We will have 20,000 pieces of equipment from Lenovo for managing the games. These include 12,000 desktops, 6,000 notebooks, and server and printers. And both Windows XP and Vista will be used.

How is the progress on the Lenovo acquisition of IBMs PC business?
We have very successfully completed our integration of the IBM PC business. I am proud to say that from a $3 bn local Chinese PC company we have now become a $15 bn global giant.

Besides PCs and notebooks, Lenovo is the mobile phone market leader among domestic companies in China. Are you planning to take your mobile phone to very hot and rapidly growing markets like India?
Our global focus is on the PC and notebooks business. There is a lot to do there. Mobile handset focus is on China right now.

Lenovo wants to think differently and innovate. Low cost PCs is one initiative that has just not taken off. What is your view on that?
We launched a sub-$400 low cost PC in China three years ago. Recently we have again announced a $199 PC for the rural and village markets. We could consider it for India as well as other emerging markets too.

What would be the key markets that Lenovo would like to aggressively go after, over the next three to five years?
I think we would like to expand in high value relationship business with large customers, as well as have very good offering for transaction-based consumers. In terms of markets, the focus will be on the US, Western Europe, Japan, and also emerging economies including the Bric countries.

How do you think consumer markets will be addressed?
We want to win consumers by having a business model with which we can offer them competitive products, and great experience.

What are the cultural changes you want to bring about in Lenovo after the acquisition? Will it be the IBM or the Lenovo culture?
We believe in trust, respect, and compromise. And, we are building these values uniformly across the organization. This will be the new culture. It does not matter if its the IBM culture or Lenovo. The new culture should help us enhance efficiency, and manage change quickly.

Ibrahim Ahmad
The author was hosted in Beijing

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