Yang Yuanqing and Steve -: why give up IBM brand in advance

From December 8, 2004, Lenovo announced the acquisition of IBM's global PC business has been a full 11 months, in 11 months, MBA lecturer almost the world's attempt to discuss in class Lenovo acquisition of IBM department is cost-effective. Domestic economists are trying to figure out how much the global business of Lenovo led Chinese companies. In accordance with the original Liu Chuanzhi's expectations, after the merger can be used IBM brand 18 months, and then still available for two months IBM and Lenovo's dual brand, until the next 5 years to play Lenovo brand. But Lenovo's master Yang Yuanqing seems to be unable to wait, in August 2005 the continuation of the birth of the IBM product system X41T notebook, has not seen the IBM brand, only to ThinkPad this product brand name. Even in November 1st, Lenovo released second quarterly financial reports, Lenovo's new CEO Steve Ward announced to give up the right to use the IBM brand in advance of 4 years, which greatly exceeded the stock analysts estimate. The new Lenovo in these 11 months, despite the United States Office of the right to use, and DELL employees malicious slander mail storm, but Lenovo fusion IBM pace seems surprisingly smooth, smooth let all outsiders picky out of trouble. Even Lenovo think big (let the world together), so that the inclusion of Lenovo and IBM brand neutral slogan has been designed. To this end, the reporter interviewed the chairman of Lenovo Group Chairman Yang Yuanqing and Lenovo Group President and CEO Steve -.

Sanlian Life Weekly: you just use the IBM brand 11 months ahead of time to give up, why give up the right to use the IBM brand in advance of 4 years?

Steve Ward: IBM brand five years of use, we will not give up easily, but we use the method and the initial expectations of a change, at least in the literal sense of IBM disappeared. But we will continue to use the name IBMthink, and not deliberately stressed IBM color, to know the word Think has more than ten years of history in the IBM desktop and notebook, the new Lenovo's future is still in the Lenovo brand, to make the Lenovo brand gradually grow up, this is a marketing tool. The game, migration requires a detailed brand transition plan designed to achieve brand awareness "". We have a close relationship with IBM, can be said that each of us is the biggest business partner, even if the IBM brand after a period of five years, the two companies will continue to maintain the good business partnership. Lenovo and the original IBM team has been launched with the first product, before the Winter Olympics in Turin, we have to launch every month to use Think brand new products. Do not think that after the IBM computer department to sell Lenovo, it is only a transitional relationship on the brand, in financing, customer service, and common sales associate with IBM always in a trench.

Sanlian Life Weekly: how do you in just 11 months on the integration of the good of the two part of the people, the Chinese companies to meet the international integration of the road?

Yang Yuanqing: mergers and acquisitions is not just a sign, the goal is to allow the integration of the two parts through a few years of integration. Often among American companies mergers and acquisitions are popular to cut the Gordian knot, we do not like the industry inside some merge, immediately announced that how to integrate the business, if it will produce a lot of collision and blind decision. For example, in a state of both the general manager, together, make decisions within three days leave who, it is difficult to guarantee a correct decision, so we China the Qiuwen, stable customers, stable business, stable staff. 11 months ago, we think we put the headquarters in New York, and then choose a foreigner to do CEO, is a compromise with the IBM decision. Now the reality can tell you that these are the choice of Lenovo, the stability of the overwhelming impact of the best integration of contact.

Sanlian Life Weekly: 11 months ago, I had asked Liu Chuanzhi, Lenovo and IBM international integration of cultural barriers is the biggest difficulty? Liu Chuanzhi was convinced that the cultural pressures of international consumers would be more terrifying than the convergence of the two companies, 11 months after the two companies can be compatible with the culture?

Steve Ward: Although I always go to the office early in the morning to open a global conference call, and the other end of the meeting is already close to the evening off time. The absolute cultural differences do not exist, not the language and the way of expression. Two of the company's business model is to maximize the integration of different things, the past Lenovo is focused on a product, and only commercial activities in a local Chinese, so for this product, it has a wide cultural space combination products. The original IBM PC business is a global project, but relatively small range of products available to choose from. This is the two part of the most need to learn from each other.

Sanlian Life Weekly: released from early November, second quarter earnings, net profit of HK $354 million to HK $290 million, a lot of growth Lenovo than last year, but the financial analysts think IBM meager contribution to the whole profits of the company, Lenovo after the acquisition of profit rate is 1.2, before the acquisition is 4.98, the decline in profit margins obviously, this is a dangerous signal?

Steve Ward: if you read the earnings report, you can find operating income and an increase of 350% over the same period last year, a lot of the current net profit is amortized to the acquisition of IBM premium and debt