The return of Liu Jun behind: Lenovo CEO Yang Yuanqing as a warning for the future

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The return of Liu Jun behind: Lenovo CEO Yang Yuanqing as a warning for the future

2017-05-16 19:19:36 1089 ℃

Recently, the frequent "substitution" (adjusted top) is then exposed to high-level changes that Lenovo, Lenovo Group Chairman and CEO Yang Yuanqing issued a letter: China Lenovo announced the internal zone will be reorganized into a personal computer and intelligent equipment group (PCSD) and data center business group (DCG); Liu Jun return to the association, will serve as executive vice president and President of China district leadership group, China platform and China PCSD business district; Tong Fuyao will serve as senior vice president and President of China District, responsible for the DCG China end-to-end business and global large scale data center business. So why after leaving Liu Jun Lenovo for two years, Yang Yuanqing again invited Liu Jun to bear the burden? What exactly does that mean?

As we mentioned in many articles in the analysis of Lenovo said, often accompanied by turnover, is Lenovo business strategic focus adjustment, although two years ago in charge of Lenovo Mobile Industry Liu Jun reason for leaving the industry Public opinions are divergent., but one thing is for sure, at the time of Liu Jun in the mobile business development strategy and Yang Yuanqing established the strategy and the target appears large differences, while Yang Yuanqing replaced Liu Jun, and even Liu Jun left Lenovo, also means that the mobile business in the important position of Yang Yuanqing and Lenovo's strategy at the time.

Unfortunately, after Liu Jun left the Lenovo nearly two years or so, the market performance of Lenovo Mobile business from Lenovo released in February this year, according to the latest results, the mobile intelligent mobile phone business revenue fell 23% to $2 billion 185 million, the global smartphone sales fell 26%. While Yang Yuanqing had been high hopes for the ZUK mobile phone brand has recently been cut, but as everyone knows the fact that when Liu Jun left Lenovo, Lenovo, ZUK is a magical workshop CEO Chen Xudong (later replaced Liu Jun as Lenovo Mobile CEO) on behalf of the first.

Can we think that Yang Yuanqing wanted to start a new strategy called "Chen Xudong's Lenovo Mobile" with the magic factory ZUK, instead of the old strategy represented by Liu Jun? If it is, then later with the cancellation of Lenovo Mobile business fell more than Lenovo, ZUK, incorporated into the magic factory brand, until the return of Liu Jun Chen Xudong's resignation with (left Lenovo), can be said that Liu Jun did not change the fate of Lenovo Mobile destiny, or between the new strategy of Lenovo Mobile said the so-called Liu Jun old strategy and Chen Xudong is not in the actual performance of Lenovo Mobile business reflects the difference. The only difference is Lenovo Mobile and wasted nearly two years, and today the Lenovo Mobile Business and its performance in the global smart mobile phone industry's position and pattern, Lenovo revenue and new profit growth point of the chances. This is probably the first pain Yang Yuanqing experienced in about two years after Liu Jun left office.

Then, in the last two or so years since Liu Jun left Lenovo, the performance of the PC business, which is still the core of Lenovo's business, is not satisfactory. The latest statistics show IDC, Lenovo in the first quarter of this year, has lost the world leader PC's position is HP counter ultra, although the statistics of another market statistics agency Gartner that Lenovo is still in the global PC market first, but we see is common in the PC market, Lenovo has a plurality of continuous growth quarter lower than rivals HP and DELL (IDC statistics show that the first quarter of this year, Lenovo's PC shipments rose only 1.7%, far lower than the HP 13.1% and DELL 6.2%, or even less than Acer has been in decline in the growth rate of 2.9%), but the fact is that the whole PC industry downturn has begun to slow down, if at the time of the PC industry Lenovo fell sharply, still maintained a high growth rate higher than the opponent, but in the overall market for the better situation, but the growth rate than opponents, only that Lenovo's competitiveness in the PC industry is beginning to decline, which is the most dangerous for lenovo. After all, Lenovo is currently about 70% of revenue still comes from the PC business, and from a strategic point of view, regardless of Yang Yuanqing's new Lenovo "three wave" of the new strategy, or customer oriented, strong foundation and guarantee all this is the PC business, otherwise everything is in vain.

But for the moment, Lenovo's PC business is already showing signs of danger that need to be boosted. The well-known fact is that Liu Jun is not only Lenovo, and even the world's PC industry, a small number of senior executives familiar with the PC industry. Unfortunately, Yang Yuanqing did not seem to realize the value of Liu Jun's Association at that time. Of course, we are not here to say Lenovo PC in the past two years the growth slowdown is entirely because of Liu Jun's departure caused Liu Jun to leave behind the transfer but at least reflect the Lenovo was the strategic center of gravity or dispersion, is a cause of Lenovo neglected in the key of the PC market innovation and competition. This is also Liu Jun left Lenovo two years or so, Yang Yuanqing experienced second pain.

Finally, we look at Lenovo's enterprise level business. According to the latest Gartner data show that in the fourth quarter of 2016, according to the server revenues, Lenovo fell 16.7% in the global top 5 server vendors in the largest decline, even more than the IBM 12.2% decline, the bottom of the rankings in the big 5, is Chinese manufacturers HUAWEI beyond. According to shipments, down 14.1%, a drop of second in the top 5, ranked only fourth, HUAWEI was also surpassed.

It is worth mentioning that, another wave of Chinese server manufacturers followed Lenovo, ranked fifth. Thus, it is easy to see that, after the acquisition of IBM x86 server business, Lenovo also has great hopes of enterprise class business is also a decline. This, from Lenovo's latest earnings show, its corporate level business revenue fell 20% year on year, only 1 billion 100 million U.S. dollars, and still losses have been confirmed. In view of the wave, HUAWEI's server business is mainly in the domestic market, we believe that Lenovo enterprise business competitiveness not only in the global market and global server vendors HP, DELL, or compared with the domestic market, domestic manufacturers HUAWEI and wave, its competitiveness are in constant decline. And undoubtedly become the third pain in Yang Yuanqing's heart.

In summary, we believe that Liu Jun's comeback, Yang Yuanqing experienced a strategic shift to Liu Jun left behind Lenovo as a symbol of pain during the most substantive significance as a warning for the future. As the saying goes: what regret past doings. We hope that the return of Liu Jun, let Yang Yuanqing be able to weigh the Lenovo future development strategy priority (such as synchronous recently proposed the "three wave" strategy), after all limited resources, their own advantages in different industries, the competitive situation and the pattern of different circumstances, must have the order of priority.