Product Quality and Services Issues at Lenovo

This research aims to address the following issues:

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The advantages and disadvantages of the merging of IBM and Lenovo
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Practices adhered by successful company mergers
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Lenovo's promise of integrity and good customer service
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The several problems encountered by IBM-Lenovo consumers
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Possible solutions (recommendations) to the problems (item 3) as well as prevention of all other problems that are yet to surface

Problem Statement

Since the merging of Lenovo and IBM on May 2005, several problems and complaints from IBM consumers have crowded the Internet, may it be on personal blogs or public forums. There are grumbles heard due to the alleged poor customer service at Lenovo while others criticized the new technologies and upgrades that Lenovo has applied to IBM machines. Some consumers even came to the point of blaming the merging that has happened, thinking out loud that IBM's name was blemished because of Lenovo.

Literature Review

IBM started their Personal Computing Division in 1981 with the aim of extending the productivity and potency of information technology from mainframe to the consumers at home; thus, laptops were developed and manufactured to fulfill this aim. It was in 1984 when 11 computer scientists in China founded a company that promised to bring the advantages of IT to the Chinese community. They call their company the Lenovo Group.

Now, Lenovo is an International Technology company created as the end result of the acquirement by the Lenovo Group of the IBM Personal Computing Division on May 2005. The company manufactures and develops reliable and high-quality PC products as well as provides professional services to its global consumers.

But being a Chinese company clouds the way for the newly-established Lenovo's success, it created an impression of low-quality mass produced machines as well as of difficult government and state issues (Human Resource practices difficulties are definitely worth considering). These concerns however are all image-related, but they are not to be shrugged-off just like that by most consumers.

The eMachines-Gateway merger has been a huge success, and Lenovo-IBM merger can follow its lead. The odds are significantly favorable to the success of this merger; however, Lenovo should address different issues and problems that have arisen since the beginning of this merger. Existing Lenovo consumers will be highly contented but it's difficult to gage existing IBM consumers especially nowadays when shouts of fouls and complaints against Lenovo can be heard in the four corners of the cyberspace.

The following are the alleged complaints and problems that were gathered as a result of this research:

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Battery Recalls made last September 28, 2006 and on March 1, 2007; the latter with approximately 205,000 9-cell lithium-ion batteries recalled. This is due to the danger that these batteries might cause the consumers (e.g. explosion and minor eye irritation). They did offered free-of-charge replacement of the said batteries but it certainly gave consumers the idea of how their products were produced. Consumers will be wary and cautious of their products and consumer trust is one thing that is very difficult to establish nowadays.

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An IT expert who has issued a damaging statement on his blog ("Since I purchased the machine, it has been hell.), has gained numerous allies and have plans of starting a "Bring Back Big Blue" campaign against Lenovo. This is to summarize the issues and the complains on his blog:

- MMI design is not Lenovo's forte, they installed (in front underside of the machine) on some of their newest models a new on/off Wireless Fidelity radio
switch which rubs with a user's leg when the machine is held on his lap; causing the wireless system to be erratic on its operation

- Unsupported backward compatibility wherein accessories that were used to be valuable to the old think pads are now worthless since it can't be used anymore with the new models.

- Delays on orders without even attempting to explain to the consumers that they are out of stock, as well as errors on deliveries attributing to a disastrous customer service.

-Incompetence of the technical staff who are supposed to shed light to consumer's confusions and technical problems, instead of clouding the situation further.

A Lenovo staff attempted to answer these issues through posting to the blog that they should be contacted so as to address the problems properly. Still, the effort was futile. So far, this research never came upon a published material from the company defending itself from these complaints. There was a consumer however who issued his statement that he never experienced such complaints, but his presence was merely ignored by the numerous complainants.

Research Design

Methods in gathering data for this design played a major role for the completion of this paper. Methods used were the most cost-effective and realistic among all the other methods available. The following issues were carefully addressed:

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Information needed to make decisions about an issue or problem
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How much of this information can be collected and analyzed in a practical and low-cost manner
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The accuracy of the information
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If the methods can get all the needed information
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If gathered information will appear credible to decision makers
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If the nature of the addressee will conform to the methods used
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How the information will be analyzed

Among the many ways to get information, the most common methods are talking with people, literature searches, telephone surveys, focus groups, mail surveys, Internet surveys, email surveys and personal interviews.

This research however chooses to employ the following methods:

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Literature search - reviewing all available published materials in the Internet, a very inexpensive and fast method of information gathering though it oftentimes provide "delayed" information.
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Internet survey - clearly the fastest and most cost-effective method of distributing a survey though it's rather difficult to gage the sampling bias. A question regarding the research was posted in one of the public forum boards and all relevant replies were gathered.

But for the research to be more reliable and effective, the following methods must be used: Personal Interviews with the Lenovo management, Focus Groups and Mail Surveys.

Resource Required

The research requires manpower and financial back-up for its completion. Other people must be employed to conduct surveys and interviews, this clearly needs financial backing. The researcher also needs enough time to bring out a successful result from this research. The researcher will be responsible for the collation, interpretation, analysis and final conclusion of the research.

Business/Management Implications of the Study

This research will help Lenovo to review their products and services and will enable them to conduct their own consumer satisfaction surveys so as to help them know the areas of which they will need to improve. Though the problems and issues mentioned in this study were allegations and have not been proven, still, Lenovo must at least make an effort to pacify their clients, to correct all the wrong notions against them as well as to give satisfaction to all their consumers.

On the other hand, consumers will gain greatly if this research will prove to be a success since every positive action(s) that Lenovo will take will be for the advantage of all Lenovo consumers.

Limitations of the Research

The information that will be gathered through this research will be limited to the amount of time and cooperation that Lenovo is willing to give for the success of this study. Also, it is of paramount importance that the aforementioned resources for this research must be provided. If financial backing is not fully given, that is another limitation. Time constraint and limitation must also be given high consideration.