CHINA, BUSINESS: An Insiders' Point of view of the Lenovo & IBM Deal
By Cecilia Luo
Some people wonder how the Lenovo Group, the biggest PC Company in China, and one of the biggest in the world, could be the buyer of the well-known IBM PC Department. However, the people who spoke at the press conference about this issue were all from the top of the companies (Lenovo and IBM), so I thought that I should interview someone from the common staff of Lenovo. The staff member I interviewed did not want to be identified.
Q: I Know that all the staff at Lenovo were using the company's computers. If you were going to buy a computer for yourself, would you still choose Lenovo and why?
A: I think so. The first reason is that I can get the low discount from Lenovo because I work here. Another reason is that I know Lenovo better than other companies, so I can choose the perfect model with the right functions for myself. The last reason is that I trust Lenovo very much. It is one of the best in China, not only for its quality but also for its service. Besides, I also have some kind of emotion in it. You know!
Q: Have you ever suggested that others buy Lenovo computers?
A: Yes. I suggested to my friends to buy Lenovo computers and even convinced my relatives to buy it.
Q: Why don't you choose an IBM computer? Isn't it a good quality and service company?
A: To be frank, I agree that IBM is the best one among other computer companies; but for the expensive price, I give up.
Q: Do you think that is also common sense for Chinese customers?
A: Not for all. You know that the Chinese people are becoming more and more practical, especially for the people from the south part of China, and they know that the most expensive computer may not be that suitable considering the price.
Q: What do you suppose would happeen if the new brands of Lenovo & IBM should sell in the same market? Would the old customers continue to insist on Lenovo? Can you estimate the number of old customers which Lenovo may lose?
A: I suppose that the old customers of Lenovo will continue to insist upon us, but that some of the old customers of IBM will not switch to Lenovo in the short term. It is a fact of the processing of this merger. As for the percentage, I am not sure but it will be the standard of this merger whether it succeeds or not.
Q: The merger took place the 8th of December, but the Lenovo stocks surprisingly decreased to 3.7%. I heard that some of the staff from your company began to worry about their careers due to a reduction in the staff. Is that a rumor or a fact?
A: My company expected to earn a lot from the stock market, unfortunately, it failed. Anyway, it is just a temporary condition. We know that it will be better. About the reduction in staff, a lot of my colleagues will go home happily whenever the boss wants because they have enough ability to find another good job. Why not start one's own business with several months' salary?
Q: Have you ever discussed the merger with IBM with your friends? Do you think it was a good or bad idea and what was the main purpose for IBM making this deal?
A: The only thing I can see is that our company became larger than before. And the combining of the two companies was mainly for the purpose of advancement in areas of high-technology, which few people know about, such as R&D. As a marketing member in the company, I don't feel any differences now. IBM is not a loser at least. It has 19% of our stock now. It will show its power in the PC market whenever it wants. You watch and see.
Some people wonder how the Lenovo Group, the biggest PC Company in China, and one of the biggest in the world, could be the buyer of the well-known IBM PC Department. However, the people who spoke at the press conference about this issue were all from the top of the companies (Lenovo and IBM), so I thought that I should interview someone from the common staff of Lenovo. The staff member I interviewed did not want to be identified.
Q: I Know that all the staff at Lenovo were using the company's computers. If you were going to buy a computer for yourself, would you still choose Lenovo and why?
A: I think so. The first reason is that I can get the low discount from Lenovo because I work here. Another reason is that I know Lenovo better than other companies, so I can choose the perfect model with the right functions for myself. The last reason is that I trust Lenovo very much. It is one of the best in China, not only for its quality but also for its service. Besides, I also have some kind of emotion in it. You know!
Q: Have you ever suggested that others buy Lenovo computers?
A: Yes. I suggested to my friends to buy Lenovo computers and even convinced my relatives to buy it.
Q: Why don't you choose an IBM computer? Isn't it a good quality and service company?
A: To be frank, I agree that IBM is the best one among other computer companies; but for the expensive price, I give up.
Q: Do you think that is also common sense for Chinese customers?
A: Not for all. You know that the Chinese people are becoming more and more practical, especially for the people from the south part of China, and they know that the most expensive computer may not be that suitable considering the price.
Q: What do you suppose would happeen if the new brands of Lenovo & IBM should sell in the same market? Would the old customers continue to insist on Lenovo? Can you estimate the number of old customers which Lenovo may lose?
A: I suppose that the old customers of Lenovo will continue to insist upon us, but that some of the old customers of IBM will not switch to Lenovo in the short term. It is a fact of the processing of this merger. As for the percentage, I am not sure but it will be the standard of this merger whether it succeeds or not.
Q: The merger took place the 8th of December, but the Lenovo stocks surprisingly decreased to 3.7%. I heard that some of the staff from your company began to worry about their careers due to a reduction in the staff. Is that a rumor or a fact?
A: My company expected to earn a lot from the stock market, unfortunately, it failed. Anyway, it is just a temporary condition. We know that it will be better. About the reduction in staff, a lot of my colleagues will go home happily whenever the boss wants because they have enough ability to find another good job. Why not start one's own business with several months' salary?
Q: Have you ever discussed the merger with IBM with your friends? Do you think it was a good or bad idea and what was the main purpose for IBM making this deal?
A: The only thing I can see is that our company became larger than before. And the combining of the two companies was mainly for the purpose of advancement in areas of high-technology, which few people know about, such as R&D. As a marketing member in the company, I don't feel any differences now. IBM is not a loser at least. It has 19% of our stock now. It will show its power in the PC market whenever it wants. You watch and see.
5 Comments:
At 1:53 PM , Anonymous said...
hmmm, this is reporting? where is the beef?
At 10:41 AM , Anonymous said...
gee, censorship of my previous comment? ms luo is big enough to deal with criticism.
in any merger, staff cut is inevitable. this employee seems to welcome that...can that be real? ms luo should have asked what if s/he is replaced...does s/he still welcome such merger?
At 11:58 AM , Anonymous said...
now this deal may be in jeopardy (the fed may block it based on national security concern)...you should ask that lenovo employee what s/he thinks. that would be interesting.
At 10:04 AM , Anonymous said...
No one can give you a conclusion about this issue. That's the fact here. Or Ms lo risks her interviewee's working site.
At 8:56 AM , Anonymous said...
who cares about a conclusion. who cares about where he works or what he does. just interview him again and make it interesting so it is not all rah rah like the day when lenovo announced the merger.
Post a Comment
<< Home