The IBM effect is still visible here.

However, the ultimate verdict, of course, lies with the Indian consumer and this is where the company has digressed from the IBM way. Nearly two years ago, people did not even know Lenovo. The first objective was to build brand awareness & sponsorship of KBC 2 played a huge role. Today, brand awareness of Lenovo is 85% in corporates & 74% in consumer space, as quoted by Rahul. Unlike IBM, Lenovo is competing head on in the HP dominated home PC segment. The company has therefore ramped up the distribution model significantly. There is more focus on B & C class towns as opposed to IBM’s focus on metros. The company has more than doubled its Lenovo exclusive stores to 100 currently. The multi brand outlets have more than tripled to 579 currently while the business partner network is now present in over 366 cities with 2,076 partners currently. But Lenovo is also taking its relational business model (with large corporates) very seriously. According to Neeraj, the company looks at segment- wise leadership like government, education et al. And Rahul claims the transition to Lenovo was very smooth, as he says they lost “practically no one” from their key corporate customers.

For Complete IIPM Article, Click on IIPM Article

Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

“Bharti Telesoft wants to be a consolidator and not a consolidatee!”

Apart from these factors, the company also believes strongly in its ability to identify emerging market opportunities. Currently, there is tremendous excitement in Bharti Telesoft regarding two relatively new VAS areas – m-commerce and Live TV. The company hopes that m-commerce will be a huge success as it will allow small low-value transactions and money remittances, where banks are failing. Sur further adds, “With m-commerce, the role of the mobile operator will change. He will be your money transfer agent, your bank, bill payment or collection guy or might even end up being your address verification document.” On the strategy of bringing Live TV to mobiles, Mital comments, “Just like PC became a window to the wired world, mobile phone will be a window to the wireless world.” The company is also excited about the advent of 3G, which would open up a whole new world of VAS opportunities, as well as competition. Banters Chowfla in jest, “No one is going to offer us a free lunch!”

For Complete IIPM Article, Click on IIPM Article

Source: IIPM Editorial, 2006

An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative

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