Lenovo

Hardships are the rigorous tests in a determined person’s life. Hardships come in numerous faces and it is this time when a human being’s ability and patience to deal and overcome the difficult time is tested. Those who come strong out of this deadly storm are the one’s who create history and make a difference in the world. Liu Chuanzhi is one such person who despite of humongous political constraints, managed to build a company which now ranks number two in the production of computers in the whole world.

Born on April 29, 1944 in Shanghai, China, Liu Chuanzhi grew up during the worst of times. Liu’s father was an executive with the Bank of China in Shanghai. However, his connections with the Chinese Communists would create a problem in Liu’s future. Liu’s childhood was encompassed with the years of unstable politics and tension in the government. In 1961, he admitted himself in Xian Military Communication Engineering College. Due to his father’s political connections Liu was not allowed to study sensitive subjects and he completed his graduation in 1966 specializing in Radar Systems. This course, however, exposed him for the first time to the computing world.

Just two years after graduation, Liu’s past yet again haunted him and sent him down for labor work. This time it was due to his anti-revolutionary ideas which led the officials to send him to work on a state-owned rice farm as a laborer and learn by living among the peasants from 1968 to 1970. By this time, the Chinese Academy of Sciences was reopened which was closed due to Chinese Cultural Revolution. Liu returned to his job at Beijing and went on to work as an engineer and an administrator. Liu provided a lion’s share in developing the 757 mainframe computer. He resigned from his job in 1984 to join Chinese Academy of Sciences – the place where the computer producing giant Lenovo would be born.

Early Days

After joining Chinese Academy of Sciences Liu stumbled upon an idea to start a computer company. But, there were multiple barriers standing in front of him and his dream. First, the Chinese government did not encourage start-ups and ran a strictly planned economy. So the funding from government was out of question. Second, for a scientist to jump into business was considered below one’s dignity and, therefore, the company Liu would start won’t have a single market expert who knows how the business should work. Despite of this barriers, Liu received a 200,000 yuan ($24,000 USD) loan from his superior at the Chinese Academy of Sciences.

Liu’s computer company, initially named Legend, was compared to the early days of Apple. The company’s manufacturing unit began in a small 20 square yards room in Beijing. The company worked on the research of magnetic storage technology in its initial stage. In 1985, Legend did something which no other computer company had ever done, they built a Chinese character set for computers. Since, the Chinese language consisted of huge number of characters it was almost an impossible task to bring all those characters in digital form. But, the development of a character set put Legend multiple steps ahead of any other company. Due to the lack of business knowledge the company often faced opinion problems among the members. But, Liu’s leadership and his study of other big companies like HP and IBM helped him to sketch an influential business and marketing strategy.

Legend started selling computers six years after its foundation, i.e., in 1990. And by 1996, the company climbed on top of the computer manufacturing company’s list surpassing IBM. Liu believed in young people in their energy and talent which could pave a way to keep the company on cutting edge of innovation and technology. Most of the company’s higher staff included young people during the 90s. By developing Pentium II processor Legend once again proved that they are and will always be on the top of the market.

The company saw its massive success in 2004 when they were declared as the largest PC manufacturing company. In 2006, Legend was renamed as Lenovo Group to enter into the UK and Europian market where the name ‘Legend’ was already trademarked. Legend also became the first company to join the sponsorship for Olympic Games held in Turin, Italy in 2006.

In 1995, the Chinese government honored Liu as the Model of National Work Force and Man of Reform in China. In 2005, Liu has also been listed in Time’s one of the 25 most influential global executives.

Harshal Pawar

Harshal Pawar is an avid reader, a TV show addict, and a writer. He has a personal blog brainwork.wordpress.com where he jots down his articles and poetry about love and life.
He is currently pursuing film-making and wishes to bring the words written on a paper to the screen. More of all he is a scorpio.