Brand Transfer In Post Cross-border M&A-Case Study Of Lenovo And IBM

A great number of corporations in China are intending to go outside as a multinational firm and create an internationally recognized brand through co-operation and competition with their rivals, therefore, the way of cross-border M&A becomes one of the popular business strategies in the globalization process. Some of them, like Lenovo, attempted to get more resource and stronger profitability and competitiveness by through the way of acquiring foreign company.This paper aims to identify how the factor, brand transfer from IBM, influences the outcomes of cross-border M&A made by Lenovo in Chinese market. Specifically, in post cross-border M&A period of the case Lenovo and IBM, the study purpose of this paper is to find the outcomes of consumer’s reflection on brand transfer between Lenovo and IBM. The relative mathematic method, like ANOVA, is used to analyse the data collected by author.The author found that the consumers’evaluation level and likeability on PC product with IBM brand image is obvious higher than with Lenovo brand within domestic market; the consumer’s cognition level of this case also positively influence their evaluation and likeability level on products.Undoubtedly, Lenovo has become the3rd largest PC firm in the world by through acquiring the American PC giant---IBM. However, though Lenovo has taken over IBM PCD for several years, IBM, as world famous brand in PC industry, is still rooted in Chinese consumer’s mind and strongly influences the consumer’s choice on Lenovo PC products. In term of this study, many consumers don’t believe that present Lenovo PC products will replace the past IBM PC products.