Lenovo Shows How Companies from Emerging Markets Can Overcome Difficulties to Become Global Brands

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.

Yet becoming a global brand is exceedingly hard.

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Keywords: retail supply chain, international trade, supply chain management, emerging-market companies, going global in sales