Lenovo: Taking a Page From Christensen’s Book

Lenovo LogoIn a recent post, “China As One Massive Disruptor,” I described Professor Christensen’s analysis of why even very well established companies often lose to upstart companies with disruptive technologies. No sooner had I finished the post when I came across a story in the August 6 edition of The Wall Street Journal entitled: “In China, Lenovo Sets Sights on Rural Market”. (full text for subscribers only)

In describing Lenovo’s strategy, WSJ could have been quoting from “The Innovator’s Solution,” Christensen’s book, when it said:

“In the coming months, Lenovo Group, the world’s third-largest computer company by shipments, plans to begin selling a stripped-down low-cost personal computer aimed at China’s rural population. The PC, priced at between $199 and $399, will include a keyboard and processor, but it will use the customer’s television set as a monitor.”

The WSJ went on to explain that:

“As PC sales slow in the developed markets such as the U.S., the technology industry is increasingly developing simple, lower cost products aimed at first-time computer buyers in emerging markets who represent the industry’s growth prospects.”

Welcome to another disruptor! Professor Christensen could not have said it better.

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