In 2005 it burst onto the global scene. The company is now the second-largest PC maker in the world and hopes to grab the top spot from Hewlett-Packard soon. Lenovo is one of several emerging-market firms striving to become global brands. They are no longer content to do the grunt work for Western firms, for two simple reasons: non-branded companies typically earn gross margins of 3 percent to 8 percent and are constantly at risk of being undercut by cheaper rivals. Branded firms enjoy fatter margins (15 percent or more) and more loyal customers.
