MBA_SecJ

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Lenovo: for those who do not have a good operating model
MBA_SecJ
Last modified on December 6, 2015 at 1:48 am
Lenovo Brazil created a good business model, but can execute it well?

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On December 14, 2015, MBA_SecJ commented on Lenovo: for those who do not have a good operating model :

Hey Anna!

Thank you for your comments.
I do think Lenovo Brasil is salvageable. First, they are already thinking of getting rid of CCE. Second, the fixes you mentioned (e.g. KPIs, sales planning, employee and customer feedback) are already being done and will gain momentum as the company reorganizes.
In my opinion, if they focus on cost cutting and production efficiency, Lenovo Brazil can probably become profitable within 2-3 years. The question remains whether HQ will absorb the losses until that happens.

On December 14, 2015, MBA_SecJ commented on Lenovo: for those who do not have a good operating model :

Hi Hao,

I agree with you. Lenovo really wanted to build its foothold in the largest Latam market. Considering the sheer size of the Brazilian market and Lenovo’s volume strategy, it made sense to go for it. However, they may have done it too fast. Plus, the CCE acquisition did not yield good results and may be reversed in the next months. Then, it’s probable that Lenovo will try to grow organically in the next months, as the Brazilian economy recovers.

On December 14, 2015, MBA_SecJ commented on Warby Parker: Disruption on the back of a revolutionary vision, mission and culture :

This is fascinating post, Madam! Despite wearing glasses myself, I had never heard of Warby Parker before coming to HBS. They have a very interesting business model and a strong supporting operating model. To be honest, I was very impressed to know they sent frames to customers before charging anything. In a country like Brazil this would probably lead to lots of “lost” frames.

A few questions:
(a) Do you know how they build their brand? It seems they have achieved success pretty early in their history…
(b) Do you believe their operating model is applicable to other consumer categories?

Thanks a lot!
Francisco

On December 13, 2015, MBA_SecJ commented on Unpacking Trader Joe’s :

This is very interesting post. As an avid client of Trader Joe’s, it was great reading about them and having a better understading of how they manage their business. They certainly seem to have a very good business model and a strong supporting operating model.

A few questions:
(a) Do you know how they started? I suppose their strategy (few items, private labels, large volumes) must have been hard to execute when they had only a few stores.
(b) Do you know how their margins compare to other players?

Thanks a lot!
Francisco

On December 13, 2015, MBA_SecJ commented on Nitori: 28 years consecutive profit increase :

This is very interesting post, Kohei!

I did not know Nitori before your post. They certainly seem to have a very good business model and a strong supporting operating model. To be honest, I was very impressed to know they were cheaper than Ikea and still managed to turn a profit.

A few questions:
(a) Do they have a strong online presence? I suppose this would help them avoid high rental expenses
(b) How does their product quality compare to Ikea? I suppose a large % of their COGS is material costs, so having cheaper materials would help reducing costs.

Thanks a lot!
Francisco