updated 04:25 pm EDT, Wed March 25, 2009
Lenovo Think and Idea Divs
Lenovo on Wednesday afternoon said it would reorganize itself into major divisions in a bid to improve its focus. At the highest level, the company plans to create a group that handles "mature" markets, such as Japan and North America, as well as a second group that handles "emerging" markets like Lenovo's native China as well as Africa, the Middle East and other areas where PCs are less widespread. Previously, Lenovo had organized itself into much smaller groups based on continents.
The PC groups themselves will also get simpler with a core Think group emphasizing business PCs like the ThinkPad and ThinkCentre lines as well as more of a focus on large-scale orders. An Idea group will focus on IdeaPads, IdeaCentres, the 3000 series and other home PCs.
Chief executive Yang Yuanqing explained the move as a logical one that should improve Lenovo's competitiveness. Certain areas are physically distinct but are more likely to have similar market behavior, he said.
The shift in structure follows a $90 million loss in the last quarter that prompted a major upheaval in Lenovo's executive ranks, including ousting its American CEO in favor of China-native Yuanqing. Shrinking PC sales and a resulting drop in market share prompted the company's emergency steps.