Lenovo’s Blue Ocean Strategy fashion statement

Blue Ocean Strategy Examples : Lenovo’s Blue Ocean Strategy fashion statement

Last week we published the first in a two-part series taking a look at two particular electronics industry leaders and their Blue Ocean Strategy like approach to success. Continuing with the second installment, today we turn to Lenovo.

While both Lenovo and Apple have initiated strategic moves which correspond to a particular principle or perspective of Blue Ocean Strategy, Lenovo’s approach differs from Apple’s “Mindshare over Marketshare.” Instead, Lenovo’s Blue Ocean Strategy-like strategic moves capitalize on product simplification and targeting mass of buyers, as well as premium pricing.

As a recent BusinessWeek article highlights:

A US$ 50,000 price tag shrinks the potential customer base for a PC considerably. But people appear willing to pay a premium for a machine that tickles their fancy. In a 2007 survey by Forrester, consumers signaled they'd pay an average of US$ 204 more for a high-end laptop that's well designed and US $253 more for a high-end desktop.

Lenovo is so sure good design will help it fetch a premium price that it's skipping right over the bottom half of the PC market with its new consumer laptops. It will charge up to US$ 2,000 for some versions of its IdeaPad U110.

Source: http://blueoceanstrategy.typepad.com/creatingblueoceans/2008/01/lenovos-blue-oc.html