lenovo.jpgIt
is usually western manufacturers who complain of stiff competition in
global markets. But China's Lenovo, the world's third largest PC maker,
has now got a bout of the western disease and has prescribed itself a
familiar western remedy: restructuring.

Lenovo chairman Yang Yuanqing says the restructuring is expected to yield annual savings of some $250m in the next few years. Lenovo has already spent $100m on office relocations and job cuts since acquiring IBM's PC operations of IBM in 2005.

At
the time of its announcement, the $1.25bn acquisition was praised as a
bold move that would give Lenovo a world-class brand — IBM's ThinkPad
range of laptops — and catapult it into a truly global player.
Previously, Lenovo was hardly known outside of China.

A year on, analysts are having second thoughts
not just about the price Lenovo paid but its desire to be a global
player in a PC business where even leader Dell, widely seen to be the
most efficient manufacturer, now complains of tough competition.

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