Lenovo transformation of the Internet: Brand war under the siege can be

After Huawei, ZTE, Cool faction, Lenovo finally decided to set up a new subsidiary, to build the Internet model of intelligent terminals and service business, relying on operators to rise to the emergence of domestic mobile phone four giants have all started to the Internet transformation. Yang has repeatedly denounced the millet pattern in public, and the association's initiative to embrace the internet in the unexpected is also understandable. In the millet mode of the aggravating, the Chinese cool Union style no longer, always do not follow the association of the transformation of the number of some of the transition, so late association, but also to bring how much imagination, it can help Lenovo out of the predicament? The overall transformation of the Internet, Lenovo some passive Yang to set up a new company placed high hopes that it will bear Lenovo face the global Internet transformation, once again the task of fierce attack. This view contrasts with his speech to abandon the Internet model at the summer summit of the Asian-economic Forum, which reflects the passivity of Lenovo's transformation. The main reasons why Lenovo has been transformed are the following two points. First, the change of telecom carrier policy. SASAC has previously made it clear that the three-year cut in marketing costs for operators is 40 billion yuan. Under this demand, the three major operators had to cut back on the program of terminal subsidy. It is understood that the three major operators 2013 years of total terminal subsidy over 50 billion yuan. If terminal subsidies die, the era of handset makers relying on operator subsidies to gain market share and profits is coming to an end, and the transition is a priority. When mobile phone sales to the bare metal era, supply channels became the key to life and death of mobile phone manufacturers, in order to rescue the market as soon as possible, Lenovo had to choose the Internet model. Second, the data show that since 2012, the domestic mobile phone sales in the brand online, electric dealers and other accounts of the steady increase in sales share. From 2012 's 11% increase to 15%. From the second quarter of 2014 China's smartphone sales rankings can be seen, Lenovo accounted for 10.8%, after Samsung's 15.4% and 13.5% of millet, but Lenovo's shipments still to the operator's custom low-end machine. With carrier subsidies falling, Lenovo is likely to collapse. Take the network channel of Millet, the other domestic handset manufacturers far behind. Son brand fierce, Lenovo still have a chance? Since the rise of millet, domestic mobile phone market has set off to millet to reverse millet "trend." Glory, the Great God, Nubian, a plus, Iuni and other subsidiaries or Sub brands were born. It can be said that domestic mobile phones have entered the son brand fierce situation, Lenovo at this time to join the war is somewhat outdated. Unlike Huawei and ZTE's founding brands, Lenovo chose Oppo and Kim to set up a subsidiary to approach the Internet model. In other words, the new brand in Lenovo's position is far from the glory in Huawei's weight compared to the same as people have been accustomed to the name of Huawei's glory, but for a plus, Iuni parent company know very little. The life and death of a plus and iuni are not threatened by oppo and Kim, and Huawei's fate is closely related to its glory. Lenovo's move lacks the courage of Huawei's bite, and may not be too much for its subsidiaries. Lenovo this time sent and mutualNetworking Walk the recent Chen Xudong new company, and Big Mouth yu and young Zeng Xuzhong compared with a bit more executive power and actual combat experience, but the Internet model more emphasis on marketing and interaction, Chen Xudong can be competent or a question mark. At present, the glory, great God and other brands have been well-known users, Lenovo's new company as a successor, if there is no better publicity strategy, if there is no greater capital investment, not well-known, the so-called internet marketing has become empty talk. In general, Lenovo set up a subsidiary at this time more or less reference to Huawei, ZTE and other experience. Huawei to intercept millet as its own responsibility, Lenovo is more through the Internet channel to keep the share, the market left to Lenovo still have the opportunity, but want to like the glory of the same success is not easy. The way: traditional channels and Internet channels conspiracy whether Lenovo or other brands, regardless of the active learning millet mode or secretly exerting the traditional channels, everything is to survive. Lenovo's decline is now, relying solely on the Internet model is difficult to save the defeat, I think the traditional channels and Internet channels of conspiracy, should become Lenovo's broken bureau know. Relying on the PC to start the Lenovo in the traditional channels of the foundation, in the second quarter of 2014, Lenovo mobile phone sales of 15.8 million mobile phones, in addition to nearly half of the shipments rely on operators, the role of traditional channels is not. Lenovo's mobile phone business has a total of three brands, including Lenovo, positioning high-end vibe, and is about to complete the acquisition of Moto, I believe that vibe and Moto positioning high-end should rely mainly on traditional channels, such as Oppo and vivo layout of high-end market, Lenovo and its subsidiaries mainly rely on the Internet model, positioning in the low-end market, relying on high prices with millet, red rice and other competition. The Internet model will eventually replace the traditional channels, but the traditional channel is still the main source of profits, which is difficult to change in the short term. Rely on Moto and vibe high-end image online and Samsung, Apple and other competition, to ensure Lenovo's profit source. With the help of Lenovo and its subsidiaries in the Internet channel to launch offensive, to abandon profits to increase sales, so as to ensure their own market share. Although this logic is very simple, but the domestic mobile phone can really do only Huawei and Lenovo, while Lenovo in the traditional channels more advantages. Lenovo's newly formed subsidiary is more like a copycat of companies such as Huawei, ZTE and cool, which may help Lenovo to compete more flexibly, as well as the task of Lenovo's transition to the Internet. For the complex mobile phone market, Lenovo's attempt to reverse the situation through a subsidiary, I am afraid, is not so easy.