Lenovo Considers Japan Production 联想向日本转移制造业务为明智公关手段
There’s interesting news that Lenovo (HKEx: 992) the world’s second largest PC maker, may move some of its production to Japan — a step that at first glance seems to totally contradict global trends that have seen PC makers relocate nearly all their manufacturing to developing markets like China and Vietnam in recent years. (Chinese article) But a closer inspection could show the idea might actually make sense, providing a powerful marketing tool following Lenovo’s takeover of NEC’s (Tokyo: 6701) notebook PC business earlier this year through a joint venture. (previous post) I previously predicted that current customers for NEC’s notebook PCs, many of those based in its home Japan market, would start to abandon the NEC brand in droves following the takeover, as many would fear a drop in quality with Lenovo’s likely plan to move NEC’s manufacturing from the expensive Japan market to developing countries to save money. This latest development seems specifically aimed at winning PR points for Lenovo by saying it won’t eliminate jobs from Japan, and also reassuring worried Japanese consumers and corporate clients that quality won’t suffer after the takeover. The strategy does seem to make sense, especially if Lenovo can manage to close at least some of NEC’s Japan PC operations to save a little money and then leave a small amount of manufacturing in the country as a goodwill gesture. My main concern would be that Lenovo, worried that Japanese media and consumers will be looking for the first signs of layoffs, may try to leave NEC’s Japanese PC operations completely intact, which would greatly hamper its ability to profitably run the operation. If it’s smart, it will perhaps maintain the entire NEC Japanese operation for the next 6-12 months, and then quietly move some of it off-shore to cheaper markets while helping employees who are no longer needed to find other jobs in a low-profile manner. Such a plan could be tricky to execute, but not impossible, as the media typically have a short attention span and are likely to forget the matter and move on to other things in the next year or so.
Bottom line: Lenovo’s plan to potentially maintain Japanese manufacturing operations it inherited from NEC looks like a smart PR move, but it will need to be careful to avoid longer-term high costs.
Related postings 相关文章:
◙ Lenovo-NEC: Let the Defections Begin 联想与NEC结盟注定失败
◙ Liu Steps Down at Lenovo — Again 柳传志再度卸任联想董事会主席
◙ Lenovo Takes Backward Step With Compal JV 联想和仁宝合资建厂为倒退举动
