> Please find the attachment for the first three papers (methodology, literature review, proposal-iteration1)

Enhancing an Outdated Marketing System at Lenovo

Submitted to

Submitted By

California University of Management and Science

Outline

I. Abstract

II. Introduction

A. Background

B. Purpose of Study

III. Problem Statement

IV. Lenovo Overview

V. Analysis

A. SWOT Analysis

i. Strength

ii. Weaknesses

iii. Opportunities

iv. Threats

B. PESTEL Analysis

i. Political Factors

ii. Economic Factors

iii. Social-Cultural Factors

iv. Technological Factors

v. Environmental Factors

vi. Legal Factors

VI. Recommendations and Implementations

A. Address Product Malfunction and Failure

i. Research Technology Sufficiently Before Using it

ii. Hiring highly-skilled Personnel

iii. Testing Product Before Releasing them into the Market

B. Fighting Existence of Counterfeit products

i. Improve and Sophisticate the Technology used to Make Products

ii. Establish Product Signatures to identify Genuine Products

iii. Changing Product Signatures Oftently

C. Improving Data Privacy

i. Conduct Sufficient Background Check on Potential Employees

ii. Close Employee Supervision and Surveillance to Reduce Malpractice

iii. Restricting Access to Data Storage Sites and Premises

VII. Importance of the project

VIII. Projections and Benefits

IX. Conclusion

INTRODUCTION

A. Background

1. Research Topic

My research topic talks about how to establish a strategy that will enhance customer loyalty at Lenovo. The year 2015 was a very challenging year for Lenovo and so was the case for the PC business. One of my friends has been working at Lenovo as from march 2014 until now. During his time there, he noted that as much as Lenovo has remained one of the global icons as the largest PC manufacturer, customer loyalty has been one of its weather storms because of the ever-changing technological trends.

2. Overall Objectives

This research paper is focused on establishing the most convenient techniques to solve the problems that are faced by Lenovo. The problems include:

· Product malfunction and failure: as is the case with many electronics, Lenovo has faced a number of criticisms regarding a piece of bloatware that was found in one of their computers.

· Counterfeit products: Existence of counterfeit computers, laptops, etc. in the market has threatened Lenovo’s customer trust. The existence of counterfeit is enabled by the use of obvious technology, i.e. using the same processors to design different types of laptop makes the laptops vulnerable counterfeiting measure.

· Leakage of Lenovo’s highly guarded information might never have been massive to cause a lot of damage, but if not tackled carefully could result to a lot of destruction for the company. Information could be on innovations or product development, and on clients.

3.0 Company Overview

Lenovo is a personal technology company and is currently the largest Personal Computer maker in the world as well an emerging PC plus reader. Additionally, it is also a global Fortune 500 company has major research centers in Japan, China, and North Carolina. It serves customers in more than 160 countries. Lenovo is established based on product innovation, efficient global supply chain, and strong strategic measures. The company develops manufactures, and markets highly reliable, high quality and highly secure technology products and services that are easy to use. Lenovo maintains high ethical standards and upholds employee welfare.

4.0 Recommendations

To solve product failure, the following steps could be applied:

· Lenovo should establish ways and methods of taking precautions during product building to reduce chances of making errors. Before releasing the products as well the company may need to ensure that it is of the intended quality and structure.

· Efforts to curb technology copying and development of counterfeit products have given the least results in the electronics industry. Lenovo has not been an exception and therefore requires to revise its counterfeit fighting techniques by improving technology and creating awareness of their genuine products.

· Lenovo should make sure it protects its information so it does not be accessed illegally. The company needs to make sure it safeguards its records and information, on their research records, clients, etc. to prevent unauthorized access.

5. Three Step-by-step Implementation Plans

To ensure that the functional state of a product is established, the following measures could be used:

· Ensure the company does sufficient research before authorizing implementation of a technology. In taking such precaution, the company will be sure to minimize any chances that the final product could fail.

· Make sure that the employees involved in sensitive sectors of product development are highly skilled and new employees are sufficiently supervised. High skill could be achieved by hiring experienced individual, or by exposing employees to massive practice to develop and test their skill.

· Product testing should be made more thorough to ensure that all traces of malfunction in each product are identified. There have existed measures but they need to be more thorough to reduce chances of malfunction. I.e. by doing test-retest method on product to make sure they are functional.

In fighting counterfeit products, Lenovo could do the following to make it more effective:

· Improve and sophisticate the technology used to make their products by re-innovating their technological inventions. For instance by restructuring the physical features of their products to unique features, i.e. the Lenovo Idea Pad is built in a way that is hard to counterfeit.

· Design a product signature to make it possible to identify a genuine company product.

· On introduction of product identification signatures, Lenovo should try and change them after time before they are figured out by counterfeit producers, i.e. reinventing product signatures after five years.

Establishing ways to improve on the data privacy

· Conduct sufficient personal background check before recruiting employees into the company workforce.

· Establish close employee supervision and surveillance to enhance monitoring to reduce the chances of malpractice around the company premises.

· Restrict access to its research sites, records, and information offices as well as highly protecting information on possible technological improvement.

6. Projections and Benefits of the Company Based on the Recommendations

Based on the research recommendations, it is important for a company to assess their technology in order to prevent any dangers to do with technological malfunctioning. Additionally, testing of the technology will ensure that any potential risks and mistakes that may have hampered the advancement of Lenovo products are identified early enough.

Information provided by the project will be useful to the Lenovo Company in different ways. In simple terms, ensuring the production of anti-malware products will increase customer confidence in the company’s products that is very necessary for securing a wider market for products. Besides, through the implementation of the privacy promotion techniques will ensure that the unauthorized access to company information could reduce to half the current possibility. In fact, ensuring production of well-functioning products as well promotes customer confidence that in the process will enhance the issue of customer loyalty at Lenovo.

B. Mission and Vision of Lenovo

The Vision statement of Lenovo implies that Lenovo will establish personal devices that will inspire more individuals to own them, a culture that most individuals would want to associate with and en enduring trusted corporation that will receive utmost respect around the globe. In other words, at Lenovo they believe that this vision is the guideline towards their mission of becoming one of the world’s market leaders in regards to great personal technology companies.

C. Problem Statement

Lenovo is a global Fortune 500 company has major research centers in Japan, China, and North Carolina. It serves customers in more than 160 countries. Lenovo is established based on product innovation, efficient global supply chain, and strong strategic measures. However, it is argued that since the year 2015 was one year that most personal technology companies incurred devastating implication, it can be noted that Lenovo was no Exception. In other words, most companies have been faced with the ever changing tastes and preferences in regards to personalized technological tools are concerned hence making Lenovo to incur a challenge of customer loyalty. In this case therefore, Lenovo must establish a way of maintaining its customer loyalty in the ever changing market demands and technological world.

INDUSTRY ANALYSIS

Introduction

Lenovo is a high techno company that specializes in laptops and LCDs under the same brand name. Additionally, it is one of the biggest computer-making corporations in China and it is ranked third globally. However, in order to comprehend the challenges that Lenovo is currently facing, it is important to conduct its industry and market analysis using SWOT and PESTLE analysis as analysis tools.

· PESTLE Analysis

I. Political

Lenovo as a company is not only conducting its business transactions in China but it also possess some roots across the globe and in the process, it has to ensure that its business strategy is in line with local and global politics (Mitchell, 2010). Additionally, the Communists Party of China has based its political manifesto that their party growth should be based on scientific principles hence making it very easy to think of business growth and expansion. Moreover, World Trade organization has at the same time liberalized trade for international companies in a move that is meant to take advantage of global markets that are dispersed. In essence, the government of China talked with the World Trade Organization to see to it that mutual agreement between the government and the WTO exists in such a way that incase of any misunderstandings, a legal framework should be used to solve the issue (Mitchell, 2010). In fact, it is through the opening of the Chinese borders by the Government that Lenovo became a global company.

II. Economic factors

Lenovo as a company was stagnating in the China market with no tangible increment in revenue and sales. As a result, it decided to expand into the global market in an effort to increase its net revenues. Additionally, international markets accepted them owing to the fact that they had very good takeover strategies of some of the already established brands around the globe. However, when the financial economic crisis came calling in the year 2008, it was impacted heavily and decided to reestablish its roots back in China (Mitchell, 2010). The China market accepted it awesomely because of Lenovo’s association with some of the international reputable brands. In fact in order to benefit from the economies of scale, Lenovo Established its manufacturing units in China and other countries that were acknowledged as low labor nations like Brazil and Argentina which in the process, assisted it in satisfying competitive while avoiding price fluctuations in case of adverse economic implications.

III. Social Factors

The literacy levels of China as a country before the current government were as low as twenty percent. However, as at the moment, the literacy levels can be said to be at least satisfactory hence leading to an increase in the level of household income and purchasing power parity. In essence, this improvement has done a big favor to Lenovo as a company since it operates in high tech business transactions that are relatively associated with literacy levels. In this case, as the number of people who are literate increases, the more they will high tech products and connectivity (Daolian, 2005). Moreover, one of the challenging aspects in regards to this issue is the fact that with increasing demand, Lenovo will as well need to increase their market share in those countries where the demand for high tech products can be said to be saturated. In fact, in UK and United States, Lenovo is associated with low quality and low price hence making it clear that Lenovo does not have a brighter future in already developed markets. Therefore, it should focus more in developing countries where people have an appetite for low price goods and are not familiar with great brands (Mitchell, 2010).

IV. Technology

The modern era is known to be a period of modern technological breakthrough such that most organizations and companies are innovating new products and keep updating their old innovative ideas with new ones. In this case, some high tech companies like Nokia and blackberry who could not move with the technological wave were either liquidated or left to count their losses (Mitchell, 2010). In simple terms, Lenovo must as well take into consideration the fact that without adoption of proper technology, they may also follow the same line. In other words, Lenovo has to establish strategies that will ensure that they innovate wisely while at the same time looking for partners that can help them build their reputation in the international market most especially in already developed markets in terms of distribution and product quality. Apparently, it is very vital to innovate but it is as well very important to establish capabilities that other companies cannot imitate to realize a competitive advantage (Daolian, 2005).

V. Legal/law factors

In china where Lenovo is headquartered, there are laws that govern the rights of consumers such as the right against any fraudulent actions or illegal actions that a company might carry out in order to tap customers and in the process, make sales (XIAO,YAN & ZHU, 2008). Additionally, there are other laws that prohibit firms from being involved with inferior products and in so doing; these laws establish a healthy competition between firms where firms compete based on their great products and their differential strategies (Daolian, 2005). Therefore, as much as the China business laws got all the companies covered, it is important for Lenovo to try as much as possible to protect its intellectual rights (Mitchell, 2010).

VI. Environmental factors

Lenovo is an environmental friendly company where it encourages all operations right from the product to packaging to be recyclable. Additionally, it employs PC in all of its products including portable laptops, TV, Tablets, and smart phones among others. In this case, any products including newly introduced products must be developed using PCC. In so doing, Lenovo is able to a considerable level of natural resources that could have been employed repeatedly if the recycle materials not have been employed (Wei, 2006).

· SWOT ANALYSIS

I. Strengths

Lenovo is a product of a merger between two universally acknowledged global brands in the world: IBM’s personal Computing Division and Lenovo Group in China .Besides, because of this merger, Lenovo boasts of unique market possibilities hence making it to have a unique brand name. Moreover, it is one of the largest makers of computers and innovative PCS.

II. Weaknesses

The financial progression of Lenovo according to statistics did not increase in the first quarter of the financial year 2010.In this case; it realized negative revenues of about US $16.01million compared to positive net revenue of US $110 million during the previous year. As a result, it can be argued that Lenovo needs to improve on its strategies. Moreover, Lenovo’s IT system need restructuring to ensure that the inventory is reviewed on a daily basis that will ensure that it adopts to the issue of market competition very quickly. There are also some weaknesses in Lenovo’s Channels (Mitchell, 2010). In simple terms, as much as Lenovo has the strongest business lines, it is still channel bound such that its consumers often incur challenges when locating its products in retail.

III. Opportunities

With the launch of Think server portfolio during the FY2008, Lenovo completed the entry into their system server market that was modeled and designed to deliver a better online experience for business customers. In so doing, this will increase the market share of Lenovo in the end.

Additionally, since Lenovo is a global brand, it can take advantage of its international workforce to enhance future developments as a PC maker. In other words, Lenovo has succeeds in incorporating workforce that has different perspectives and opinions which offer opportunities of innovation and better problem solving that in the end, will play a very crucial part in the long-term success of Lenovo as a company

IV. Threats

Because of the company restructuring, Lenovo has incurred negative net revenues in during their previous financial year. In fact, the financial performance of Lenovo has of recent not been improving in developed countries during the first quarter of the financial fiscal year resulting to increasing number of poor returns on equity and other financial rations. In fact, it is acknowledged that Lenovo strategy has not been improved to cater for the challenges associated with customer service and financial performance. Therefore, if the company losses continue, then it is accepted that Lenovo will take a lot of time to be competitive again.

LITERATURE REVIEW

Company Overview

Lenovo is a personal technology company and is currently the largest Personal Computer maker in the world as well an emerging PC plus reader. Additionally, a global Fortune 500 company has major research centers in Japan, China, and North Carolina. It serves customers in more than 160 countries (Blut et al., 2014). Lenovo is established based on product innovation, efficient global supply chain, and strong strategic measures. The company develops manufactures, and markets highly reliable, high quality and highly secure technology products and services that are easy to use. Lenovo maintains high ethical standards and upholds employee welfare (Goetsch & Davis, 2014).

The Problem of Customer Loyalty-Problem Statement

A high level of marketing orientation generates better results sin most cases if it is used to certain segments. Additionally, there are two recognized business strategies when it comes to the management of customer relationships: defensive and offensive strategies. The offensive business strategy implies the company’s efforts to attract a new customer base whereas the defensive strategy revolves around the aspect of the company those intents to make the existing customers more loyal to the company. As a result, when placing value on a product, the image loyalty is the primary factor that is taken into consideration since a highly motivated and loyal consumer base realizes high net revenues and large sales. Additionally, a company image that does not have a loyal customer base is in most case vulnerable and its only tangible value lies on its reactiveness in creating new loyal customers but on a larger scale, keeping existing loyal customers realizes more net revenues that finding a new loyal customer base. In other words, it is for this reason that most companies always tries as much as possible to keep their customer base very happy and highly satisfied without really taking into consideration the difference that exists between the satisfaction of customers and customer loyalty. In simple terms, a highly satisfied customer does not guarantee product loyalty since based on a number of research works, a customer who is satisfied can easily change the product and buy from another company (Soteriou & Stavrinides, 2013).

How to Improve on the Issue of Customer Loyalty-Recommendations

Organizations in the modern world are employing branding as an important strategic tool with increasing frequency in their business operations and environment. Additionally, branding and brands are not new business ideas since business pioneers assert that branding in itself was known over a hundred years ago and its role is developing into a significant one as the days goes by. Branding is a symbol, a name, a design, or a certain combination that tries to establish the fact that a product of a certain company possesses a differentiated, substantial and a unique competitive advantage over the others. However, despite the formal definitions and explanations of branding, it is acknowledged that the purpose of branding is to model the image of a product in a manner that is appealing or will attract customers. In other words, the perceived image will influence , attract and remind customers of the perceived product value that in the end, will increase the value of the brand to the consumers hence resulting into what is acknowledged as customer loyalty (Laroche Habibi & Richard, 2013).

Organizations use their image and reputation in the market to attract keeps their consumers by promoting the company image, prestige, value or the product lifestyle. Additionally, branding is a methodology that is used to establish a sustainable and unique advantage by taking advantage on the nature of human beings. In essence, humans are the targeted audience of branding since they possess emotional attachments and feelings to inanimate products. The concept of brand management is based on manipulation of the 4Ps such as p-lace, product, promotion, and price and in the process; it takes into consideration the implementation of the business strategies that follow. Apparently, these relationships are classified based on the brand equity. The value a customer attaches to a product of a particular company is the value perception that is sometimes acknowledged as the brand equity. In essence, the strength determines how loyal a particular segment of customers will be to the company (Mende Bolton & Bitner, 2013).

Branding customer loyalty through the employment of loyalty marketing is a well-known business strategy that encourages all business operations to maximize the customer share. Additionally, the chase to obtain customer loyalty is continuous and it takes a form of a journey than the final destination. In other words, the concentration on customer loyalty is essential in the provision of the necessary insights that are crucial in the establishment of a strong business brand. In fact, the market is demarcated into a number of different demarcations that are made of groups of individuals with the same tastes and preferences within their individual groups rather than between the existing groups. In this case, if an organization is able to establish its strategy based on loyalty marketing, then it is very crucial for them to identify who their company’s loyal customers are. In fact, this strategy is very easy for those organizations that practice business-to-business marketing strategy than those that engage in consumer goods marketing (Stock & Zacharias, 2013).

How to Deal with the Problem of Customer Loyalty-Implementation Plan

When customers choose between different services and products, they commence by evaluating a set of acceptable alternatives from the available choices and ion the process, they limit their spending power to these alternatives. In business, this identified set of alternatives is acknowledged as consideration set or evoked set. It is accepted that, the limitation of business choices to a level that is manageable ensures that the consumers are able to make rational choices. As much as it is hard to meet the expectation and demands of all consumers at the same time, it is important to setup priorities based on certain customers coupled with their needs. In this case, the competitive advantage of an organization is only realized through the fulfillment of the most significant needs of the consumer that is most important. In so doing, a company can realize a competitive advantage since it may be meeting the demands of a customer whose demands are not being realized by another company (Tarasi et al., 2013).

False customer loyalty occurs when the customers are presented with limited product alternatives to choose from. Additionally, customers seem to be loyal to the brand since they continue purchasing the same product from a single seller .However, their apparent loyalty can be attribute to the fact that they lack good substitutes to replace that product with even if they are unhappy with the product. In fact, over the past ten years, the aspect of consumer loyalty has been on the decline. Apparently, two to three decades ago, consumers will frequent a certain company for a particular product as opposed to what is currently witnessed ion the current market. In this case, so many scholars that this dynamics have slowed changed because of the increasing selection of products, services, accessories and styles. In simple, terms, if the value differentiation increases, the value of the products can blur and people can be distracted. This is attributed to the fact that there are a growing number of business publications, the internet, and brochures that make information about a certain product available and accessible easily (Jahanshani et al., 2014).

It is also acknowledged that some individuals patronize certain products because they find it convenient. Additionally, the business environment in the modern corporate world is very challenging because individuals have too much to perform within a very limited timescale. In this case, therefore, it is very cheap for individuals to focus on one habitual brand and in the process; this establishes a certain form of brand loyalty. It is acknowledged that, this form of brand loyalty may never have existed if time was not a challenging issue. In fact, within the framework of consumer decision making process, there are three accepted stages that a consumer must go through before making a product choice. First is defining the alternatives a available, this is followed closely by reviewing any reliant information about the product in memory before finally applying their decision rule. One sure thing is that as much as consumers possess an extensive knowledge about a product, it is possible that they will only take into consideration a few of the products for purchase (Turner et al., 2014).

Customer Loyalty Programs

The implementation of customer loyalty training programs have been on the rise in recent years and in the process, the focus of attention has been diverted to customers. Additionally, customer loyalty programs are important in offering relationship and financial rewards to the customer with the sole intention of making the customer loyal to the company brand. Moreover, the customer loyalty programs are aimed at increasing the company net revenues though net sales and establishing a bond between the customer and the brand to defend the already existing customer base. In other words, the loyalty programs are established to offer rewards to the most loyal consumers, manipulate the consumer behaviors, and generate relevant data about the consumers (Kumar et al., 2013). One way the loyalty programs influences customer loyalty is through customer satisfaction and adding value to customers. Moreover, these programs are also important in establishing the switching costs and net revenues for the company through the avoidance of price of competition. In such situations, the value perception of the customer is crucial condition for developing the company brand loyalty by employing loyalty programs (Saeidi et al., 2015).

Loyalty programs on the outside view are programs meant to establish emotional relationships that can later generate benefits for both individuals who are participating in the program. Additionally, the benefits accrued from the program needs to be capable of establishing an emotional attachment that is valuable between the customer and the company (Peppers & Rogers, 2012). In other words, the concept of benefits depends on the fact that the customers are able to choose their brand based on their desire and needs. In simple terms, before any customer considers enrolling into the loyalty program, they measure their input in terms of obligation and membership fees against the output that they will be able to receive by joining the program such as the image, benefits and special customer status. Therefore, the company must focus on choosing the nest opportunities for their customers in order to make this program a success (Kuo, et al., 2013).

Benefits of Maintaining High Customer Loyalty-Analysis

The right benefits to the customers are those that the customers perceive to be the ones with the highest value. Additionally, it is very challenging to sustain and build customer loyalty. In fact, is more economical for some organizations to keep hold of their already existing loyal customers that trying to create a new customer loyalty base. However, any company that has managed to receive customer’s loyalty benefits in a number of ways. First, customers that are loyal are less price sensitive as compared to the other random customers. Second, it is a proven fact that customers who are loyal tom a particular brand spend more time with the brand and in the process; they are able to pass on their positive emotional attachments to the company to other potential customers (Allred & Addams, 2013).

On a general platform, the end objective of corporations, marketing efforts revolves around profit generation. In this case, by looking at it from the relationship marketing perspective, a company that can be considered successful is the one that has managed to change their customers into clients and in the process, change customers from prospects into partners. One obvious argument for customer retention is that is cheap. However, there are also non-economic benefits that can be associated with customer retention such as the feedback provided about a particular service or product since it can help the company to improve on the product’s functional features (Toufaily Ricard & Perrien, 2013).

RECOMMENDATIONS AND IMPLEMENTATIONS

A. Address Product Malfunction and Failure

Products that are faulty, malfunctioned, or not operational at all lead to loss of customer trust and loyalty. Lenovo has faced cases of malfunctioned products which disappoint their customers a great deal. In this case, customer loyalty tends to increase with good product quality and vice versa. Incidences of product faultiness tend to reduce customer satisfaction and consequently lower levels of customer preference and loyalty (Cruz, 2015). Ways in which Lenovo could uphold their product quality and preserve customer loyalty include the following.

i. Research Technology Sufficiently Before Using it

Technology is said to be the mother of all invention. However, a technology that is not assessed could lead to production and manufacturing of products that are not functional. Lenovo should ensure that it undertakes all the necessary research processes on a new technology before it is declared ready or efficient enough for use. By assessing technology before it is used to make products reduces the chances of using an adequate technology and reduces the chances of making faulty products (Delaney & D'Agostino, 2015). Reduced faulty products, on the other hand, lead to high-level customer satisfaction, retention of customer trust and loyalty.

ii. Hiring Highly Skilled Personnel

Skill and knowledge level of employees in many occasions determines the quality of the final product made by an individual employee. In order to ensure that the products that are made are of sufficient quality and in a functional state, Lenovo could solve the challenge of faulty products by ensuring that it hires skilled employees in sectors that are very sensitive in product manufacturing to ensure that there are minimum chances of making mistakes leading to malfunctioned products ("Benefits When Hiring a Well and also Highly Educated Staff members – ICW-CIF", 2012). In cases where the skill of an employee is not trusted enough, sufficient supervision is available to minimize the chances of making mistakes and expose them to enough practice to develop their skill.

iii. Testing Product Before Releasing them into the Market

Chances that a product may be faulty could be reduced by testing it before it’s released from the company for sale. Mistakes are unavoidable in making products but could be reduced by taking the precaution of testing the product to ensure that it’s in a good working condition. Product testing enables the identification of any traces of malfunction and provides the company a chance to correct them before they fall into the hands of customers (Martin, 2014). Lenovo should, therefore, ensure that the precaution is taken on all products to ensure they are in good working states.

B. Fighting Existence of Counterfeit Products

Counterfeit products have the effect of ruining a company’s reputation in the product market. Counterfeit goods not only have negative economic effects but also social effects. If a customer encounters a faulty product they are likely to share their encounter on social media for instance which destroys the image of the producing company (Loizides & Basheer, 2014). In fighting counterfeiting, Lenovo should make sure it applies these measures effectively.

i. Improve and Sophisticate the Technology Used to Make their Products

In order to minimize the chances of encountering the problem of counterfeit products, Lenovo should use a highly sophisticated technology in making its products. By improving the technology that is used to make its products, it makes it hard for counterfeiters to copy their technology (Kusic, 2014). It could, for instance, restructure the physical features of their products to unique ones that are not easy to copy. Sophisticating technology helps to make it hard to steal the company’s technology and protects the legacy of the company.

ii. Establish Product Signatures to identify Genuine Products

Product signatures enable a product to be differentiated from other counterfeit products. Designing a product signature will work in the favor of Lenovo to ensure that its products are identifiable by customers to prevent them from purchasing counterfeit products (Bush, Bloch, & Dawson, 2010). By designing a product signature, Lenovo has the benefit of preventing customers from encountering low-quality counterfeit products which in turn enables it to retain customer loyalty levels.

iii. Changing Product Signatures Quite Often

Product signatures involve a secret technology used by a company to identify its genuine products. A product signature may involve a unique feature that is incorporated in the product’s physical or software making. However hard the technology may be to steal and to copy, time gives counterfeiters the opportunity to figure out the technology allowing them to gain an advantage over the technology owner (Bush, Bloch, & Dawson, 2010). To avoid corruption of product signatures, Lenovo should ensure that it changes them more often to prevent giving counterfeit producers the advantage of time.

C. Improving Data Privacy

Data comprises of a lot of useful information that if accessed illegally could cause adverse consequences to the company. In cases of data leakage, a company might lose its legacy through data security breach (Hur, 2013). Ensuring data security helps a company to protect its information and legacy as well. A company legacy might include aspects like new technology, research findings etc. Achieving data security might involve some of the following precautions.

i. Conduct Sufficient Background Check on Potential Employees

Data breaches in some occasions may be aided or conducted by employees. To prevent taking the risk of recruiting employees who have a criminal record into the organization. Conducting a sufficient background check on potential employees provides a chance to identify individuals who could possibly pose a danger to the company’s privacy and legacy (Hur, 2013). Lenovo should, therefore, make sure it conducts sufficient background check on employees to make sure they reduce the risk of exposing its secrets.

ii. Close Employee Supervision and Surveillance to Reduce Malpractice

Employees who might be out to conduct data breaching practices may be identified by setting up sufficient surveillance and supervision to reduce the chances of experiencing data breaches. Setting up surveillance materials across the company premises enables the company to monitor activities of employees. Monitoring employees help the company reduce the chances that one may get to execute malpractice in the company (Pierce, Snow & McAfee, 2015).

iii. Restricting Access to Data Storage Sites and Premises

By restricting access to its data storage sites helps a great deal to enable the company to reduce chances of a data breach. Data storage sites may include research sites, records and information offices and information on technological findings. Experiencing access of data on technological findings leads to a risk of experiencing technology theft which in turn leads to counterfeit products which in turn leads to reduced performance of the company (Mo et al., 2014). Lenovo should, therefore, ensure that it accords adequate security and protection of its data storage sites to enhance protection of its data and information.

CONCLUSSION

Lenovo is a personal technology company and is currently the largest Personal Computer maker in the world as well an emerging PC plus reader. Additionally, because of the company restructuring, Lenovo has incurred negative net revenues in during their previous financial year. In fact, the financial performance of Lenovo has of recent not been improving in developed countries during the first quarter of the financial fiscal year resulting to increasing number of poor returns on equity and other financial rations. Hence it is important for them to maintain their customer loyalty in an effort to keep up with other competitors and in the process, improve their net sales. Information provided by the project will be useful to the Lenovo Company in different ways. In simple terms, ensuring the production of anti-malware products will increase customer confidence in the company’s products that is very necessary for securing a wider market for products. Besides, through the implementation of the privacy promotion techniques will ensure that the unauthorized access to company information could reduce to half the current possibility. In fact, ensuring production of well-functioning products as well promotes customer confidence that in the process will enhance the issue of customer loyalty at Lenovo.

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