Thursday, May 22, 2008

Lenovo’s Mantra v2.0.

Lenovo (LNVGY) announced its Q4 results as at Mar 31, 2008. The results are pretty good and management bonuses seem to be in order. Results all over the world are up and the US division continues to struggle. This is in line with most corporate results across a broad range of industries.

Lenovo waxed eloquently about the “worldsourcing business model” according to President and CEO William J. Amelio. He continued with this comment “A complete approach to doing business in a new global economy, worldsourcing transcends boundaries, cultures and structures. It enables us to leverage our cultural and geographic strengths to manage costs, increase efficiency and harness the power of innovation from across the global organization.”

These are the key comments attributable to the President and CEO and sound more like a commencement address at a prestigious university. There were no comments about new products, new technologies, partnerships or acquisitions. This from a technology company who knows they need to have the goods to survive. You can have the most efficient sourcing and manufacturing system known to man. If your product does not have a compelling value proposition your efficiencies are for nothing.