You will hear an interview focusing on Lenovo’s business. For each quest

Woman: Welcome. As you said in an interview with the Caijing that Lenovo expects business growth in its home market in 2009, how to understand this?
Man: Although Lenovo’s business has been affected by the financial crisis, the Chinese market offers new opportunities for IT thanks to the government’s effort to expand domestic consumption. To take advantage of this, Lenovo will pour more effort into developing its China business, and strive to expand at home and in other emerging markets.
Woman: As we know, last year was a bad one for Lenovo. In the financial report released last week, the company admitted a loss of $97 million in the third quarter of 2008.
Man: Yes. But as the world’s fourth-largest PC maker and China’s market leader, the $97 million toss will barely threaten Lenovo. The figure is still far from our safety line. You know, Lenovo’s global PC sales decline 5 percent year on year, with ground lost in the company’s major regional markets including America, Europe, Mid East, Africa and Asia Pacific. So it is not a life-or-death moment.
Woman: On February 5, Lenovo announced a management reshuffle. The reshuffle followed a massive restructuring Lenovo launched in the beginning of the year, trimming 11 percent of its staff around the world, including its China operation. It combined its Asia-Pacific division with its China division and reduced compensation packages for its executives. Trade analysts said these measures could save the company as much as U.S. $300 million. Then what’s your target?
Man: After a series of efforts to improve operational efficiency and the company’s supply chain, Lenovo could expect higher profits and lower costs in its China operations. Although Lenovo has occupied 30 percent of the market share in China, I believe that there is still room for Lenovo to expand further.
Woman: Now Lenovo is aiming to claw back global market share by selling more cheap computers. Could you give some explanation about this measure?
Man: OK. We are looking to increase our presence in key emerging markets such as India and Poland. We want to cover the low-end segment as well. We will not lose this market.
Woman: Then how to carry out the strategy in detail?
Man: The management would set detailed execution plans with clear market share targets for key emerging markets every quarter. It would push harder in markets in southeast Asia, India, Poland and Turkey. Only these markets can give us hyper-growth.
Woman: That means Lenovo is adjusting its strategy from a focus on premium brands?
Man: We adopted a model following the acquisition of IBM’s PC unit in 2005, and turning to the traditional aggressive business model to lift the company out of the current crisis.
Woman: In your opinion, how to win in IT industry?
Man: The most important characteristic of the IT industry is that it is changing frequently in terms of technology, pricing and products, and if you want to win, you have to adapt to those changes. And we must be faster than our competitors. In China, our strength is the transaction model — we employ a big sales force which works through a big retail channel network that reaches deep into China’s different regions.
Woman: So under this strategy, Lenovo is on the way to success in its market. Best wishes. Thank you.