Lenovo Group once again adjusted its business structure

On the evening of January 5, Yang Yuanqing, Chairman of Lenovo Group's Board of Directors, announced internal corporate restructuring changes in 2013. Lenovo will split into Lenovo Business Group and Think Business Group. The former MIDH Department will be merged into Lenovo, the former MIDH Business Group. The principal Liu Jun will become the head of Lenovo's business group. Peter Hortensius, former president of Lenovo's global product division, will become the head of Think business.

Liu Jun's job adjustment has aroused external attention. He was once recognized as the third generation successor of Lenovo Group. The 44-year-old Liu Jun had already spent 20 years in Lenovo. In 1993, he graduated from Tsinghua University and joined Lenovo as an engineer of the Quality Control Center Evaluation Department.

In 2005, Liu Jun was promoted to Lenovo Group COO and co-ordinated Lenovo's global supply chain. However, due to a big disagreement with Amelio, then CEO of Lenovo Group, he was suspended for one year in 2006.

In 2007, Liu Jun returned and replaced Yang Yuanqing as president of the consumer group. With Liu Chuanzhi and Yang Yuanqing regaining power, he has successively served as Lenovo Idea Business Leader and MIDH Business Leader. However, Lenovo has not promoted it as a third-generation successor as it did at the moment, but only listed it as a member of Lenovo's top 8-person management team.

The biggest change in Lenovo’s strategic adjustment is to increase the value of its Think brand and focus on the high-end market. At the same time, it downplays the Idea brand and relies on the Lenovo brand to attack the consumer market and the low-end market. This means that Lenovo's Think and Idea dual-brand strategy implemented since 2009 will be completely abandoned.

Yang Yuanqing admitted in his internal e-mail that Lenovo had tried to promote the Lenovo brand in mature markets, but found that the Lenovo brand had significant results only in the mainstream and low-end areas. In the high-end product market, Think is Lenovo's best brand asset and the only brand that can compete with Apple in the high-end market. Therefore, the company wants to give full play to the potential of these two brands in their respective market segments and realize their respective values ​​to the greatest extent possible.