【正文】 in the next five to ten years. Five force analysis Source: Created for this assignment. Information from: About more information, please look at Appendix 1.1. Competition in the industryThere are many excellent puter panies can bee the petitors, such as Apple, DELL, Sony and HP. These panies have strong background and finance basis, they also have the quality product and target customers. However, the situation is moving toward what seems like a much more oligopolyorientated situation. Mergers and buyouts occur frequently. In the past few years HP merged with Compaq Computer Corporation and Lenovo merged with IBM’s PC. All of these can show us, the orientation of the PC market changes dramatically as big panies merge into larger PC manufactures.2. Threat of new entrantsIn a matured industry means the threat of new entrants is minimal. This is a good news for Lenovo. The rate of new entrants successful is very low. Though the entrance barrier is relatively low, as it is rather easy to assembly a puter mainframe, to mass produce PCs still requires a large amount of initial investment and financial support. When panies such as Lenovo are lacking brand recognition internationally, it is clear that new entrants will have a very hard time trying to pete with well established manufactures, unless the new player has technology the existing panies do not already have. Therefore, as long as the giants of the industry keep up with the latest technology, there should be very little threat of new entrants in the industry. (Brinkhus et al., 2009. )3. Power of suppliers‘Assuming that Chinese panies cannot currently produce the most hightech ponents of a puter by themselves, Lenovo has to deal with international central processing unit (CPU) and hardware panies such as Intel Corporation and Seagate Technology. Interestingly, many of these panies have manufacturing plants in China, thereby substantially lowering cost.’ (Brinkhus et al., 2009. )4. Power of customersConsumers have a huge amount of profits on the association39。 in mainland China. (Caroline707, 2007)s work and lives. Lenovo Group established a China Beijing, Tokyo, Japan and the United States Raleigh three major researches and development base for the fulcrum of global R amp。Economic factorsSince the rapid economy growth in China, puters bee more and more popular in the family. After that Lenovo has a large market. In addition, interest rates and taxation levels are very low when Lenovo develop. It can borrow much money and give less money to government so that it can enlarge scale to decrease costs. On the other hand, Lenovo bee larger than ever. They can provide more jobs and unemployment decrease. D team is to improve the overall personal puter owners’ experience and reducing total cost at the same time. External Environment Analysis: PESTELThe PESTEL analysis is frequently applied in the macro environment analysis. It including political, economic, social, technological, environmental, and legal analysis. (Ayers, 2009. )Source: Created for this assignment. Information from Google website 2010Excellent human resourceLenovo has made important contributions for the world PC technology advances. Lenovo has included a number of worldclass technology experts, including firstclass R amp。s Lenovo, the new Lenovo is a globally petitive IT giant. Worldwide, Lenovo to provide customers with awardwinning ThinkPad notebooks and ThinkCentre desktops equipped with ThinkVantage Technologies software tools, ThinkVision monitors and a range of PC accessories and options. In China, Lenovo39。Innovation and excellenceLenovo39。Trustworthiness and integrity(Lenovo, 2005) Key factors of success:Innovative and entrepreneurial spirits bestengineered PCs for our customers. ValuesLenovo values serve as the foundation of our pany and define who we are and how we work. Principle among them are:Customer satisfa