IBM has been focusing on developing solutions for customers. Some observers say the Big Blue earns more money in consulting, software development and solution development for customers than selling computers.

    It seems logical IBM wants to get out of low value-added computer manufacturing. However why does Liu want to be expand his PC-manufacturing capacity?

    ¡°In China, Lenovo has 27 percent of the domestic market. There is not much room for further growth. However, the global PC market is estimated to be worth US$200 billion. The room for growth is huge if we look beyond the domestic market,¡±

    Liu believes IBM has a lot to offer to Lenovo, in particular its management know-how and international reach.

    Over the past decade, IBM has developed a well-connected national distribution network. Liu believes by combining a strong brand, high-quality product and wide distribution network, Lenovo will see increased profitability down the road.

    With the acquisition of IBM¡¯s PC unit, Liu has geared up his strategy to become a global company. At the launch ceremony, he disclosed that Stephen Ward, Vice President of IBM would become the new CEO of Lenovo Group to replace incumbent Yang Yuanqing. Yang Yuanqing will replace Liu as the group¡¯s chairman.

    Most of the top executives in IBM¡¯s PC unit would join Lenovo, including the division¡¯s general manager Fran O¡¯Sullivan, who will become chief operating officer, Liu said.

    Liu also actively sought new financing from international investment houses. He said Lenovo would receive a US$500 million bridge loan from Goldman Sachs to help finance the acquisition of IBM¡¯s PC asset.

    After the acquisition, Liu pushed Lenovo Group onto the world stage. ¡°There is no turning back. Lenovo has made a firm commitment to compete on the world market,¡± he said.

    In fact, Liu had long made his vision to expand overseas. On many occasions, he urged his management staff to study the overseas market, adopt advanced Western management techniques.

    To realize this vision, he retained over 10,000 employees of IBM PC. Compared with the downsizing at the beginning of this year, Liu seemed to give little heed for the cost.

    ¡°I believe that the strong capability and management system IBM has built up will boost Lenovo¡¯s strategy by competing globally,¡± he said.

    Liu is undoubtedly the architect of Lenovo. He founded the company, grew it into the scale it is today and has steered its course of development. Though Liu does not have any formal position, his influence will remain in the computer maker. And the world is waiting to see how Lenovo performs after taking over the Big Blue's PC business.

(Source: Shenzhen Daily)