Final Dissertation
Final Dissertation
Dissertation report on
A Comparative study on consumer behaviour about Dell & Lenovo
LAPTOP
Report submitted by
NAME – SUBHANKAR CHAKRABORTY
Roll No –PG/VUOAPO1/MBA-IS NO-570
Registration number –
Institute – Bengal Institute of Business
Studies
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DECLARATION
I hereby declare that the study entitled “Impact of brand on
consumer buying behaviour in LAPTOP industry special reference to
Dell & Lenovo” is being submitted by me as my final year dissertation
project in the partial fulfilment of the requirement for the award of
masters of Business Administration. The study is based on secondary
source of data as well as on primary data/information source.
The matter embodied in this project report has not been submitted
to any other university or institution for the award of degree. This
project is my original work and it has not been presented earlier in
this manner. This information is purely of academic interest.
Signature: Date:
Thanking you.
Your truly: subhankar Chakraborty,
Assistant professor
Bengal Institute of Business Studies
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Acknowledgement
Signature of student
Abstract
Customers all over the world now prefer branded products. This study is aimed
at analysing the effect of brand on consumer buying behaviour. Along with
finding the effect of brand on consumer buying behaviour the purpose of the
study is to have an in-depth knowledge of what actually is branding and
consumer behaviour. To study the relationship between brand and consumer
buying behaviour the following methodology is opted: Consumer Survey on the
effect of brands on their buying behaviour through questionnaire. The key
results of the study are: The degree brand of consciousness goes on decreasing
in higher age groups; brand &price were the major attributes that customers
gave most importance and 82% people believe that Brands in laptop industry
have become a status symbol. The factors which more prominently affect the
consumer buying behaviour are Cultural, Social, personal, Psychological,
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TABLE OF CONTENTS
5 ABSTRACT 4-5
6 INTRODUCTION 7-15
7 LITERATURE REVIEW 16-18
8 RESEARCH OBJECTIVE 19
9 RESEARCH METHODOLOGY 20-21
10 RESEASRCH ANALYSIS 22-36
11 RESEARCH FINDING 37
12 RECOMMENDATION AND 38-39
SUGGESTION
13 LIMITATIONS OF THE 40
STUDY
14 SCOPE OF FUTURE 41-43
RESEARCH
15 COCLUSION 44
16 BIBLIOGRAPHY 45-47
17 APPENDIX 48-49
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INTRODUCTION
Type Subsidiary
US[1]
Personal computers
Products
Servers
Peripheral
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Website www.dell.com
History
Dell's logo used before the acquisition of EMC, used from 2010 to 2016, continued to be used on some
products until early 2018
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Type Public
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Beijing
Liu Chuanzhi
Founder
Danny Lui
Medion
Website lenovo.com
History
1984–1993: Founding and early history
In 1984, Lenovo was founded in Beijing by a team of eleven engineers from the Institute of Computing
Technology of the Chinese Academy of Sciences (CAS), led by Liu Chuanzhi.[13]
Liu Chuanzhi and his group of ten experienced engineers, teaming up with Danny Lui,[11] officially
founded Lenovo in Beijing on November 1, 1984, with 200,000 yuan.[13][14] The Chinese
government approved Lenovo's incorporation on the same day. Jia Xufu (贾续福), one of the
founders of Lenovo, indicated that the first meeting in preparation for starting the company was
held on October 17 the same year. Eleven people, the entirety of the initial staff, attended. Each
of the founders was a member of the Institute of Computing Technology of the Chinese Academy
of Sciences (CAS). The 200,000 yuan used as start-up capital was approved by Zeng Maochao (
曾茂朝). The name for the company agreed upon at this meeting was the Chinese Academy of
Sciences Computer Technology Research Institute New Technology Development Company.[13]
The organizational structure of the company was established in 1985 after the Chinese New
Year. It included technology, engineering, administrative, and office departments.[13] The group
first attempted to import televisions but failed. It rebuilt itself as a company doing quality checks
on computers. It also tried and failed to market a digital watch.[15]
In May 1988, Lenovo placed its first recruitment advertisement on the front page of the China
Youth News. Such ads were quite rare in China at the time. Out of the 500 respondents, 280
were selected to take a written employment exam. 120 of these candidates were interviewed in
person. Although interviewers initially only had authority to hire 16 people, 58 were given offers.
The new staff included 18 people with graduate degrees, 37 with undergraduate degrees, and
three students with no university-level education. Yang Yuanqing, the current chairman and CEO
of Lenovo, was among that group.[13]
Liu Chuanzhi received government permission to form a subsidiary in Hong Kong and to move
there along with five other employees. Liu's father, already in Hong Kong along with Lui,
furthered his son's ambitions through mentoring and facilitating loans. Liu moved to Hong Kong
in 1988. To save money during this period, Liu and his co-workers walked instead of taking
public transportation. To keep up appearances, they rented hotel rooms for meetings.[13]
In 1990, Lenovo started to manufacture and market computers using its own brand
name.[15] Some of the company's early successes included the KT8920 mainframe computer.[13] It
also developed a circuit board that allowed IBM-compatible personal computers to process
Chinese characters.[15]
optimistic about Lenovo. On its first day of trading, the company's stock price hit a high
of HK$2.07 and closed at HK$2.00 suggesting an initial under-valuing of the company. Proceeds
from the offering were used to finance sales offices in Europe, North America and Australia, to
expand and improve production and research and development, and to increase working
capital.[13]
By 1996, Lenovo was the market leader in China and began selling its own laptop.[16] By 1998 it
held 43 percent of the domestic computer market share in China, selling approximately one
million computers.[16]
Lenovo released its Tianxi (天禧) computer in 1998. Designed to make it easy for inexperienced
Chinese consumers to use computers and access the internet, one of its most important features
was a button that instantly connected users to the internet and opened the Web browser. It was
co-branded with China Telecom and it was bundled with one year of Internet service. The Tianxi
was released in 1998. It was the result of two years of research and development. It had a
pastel-colored, shell-shaped case and a seven-port USB hub under its screen. As of 2000, the
Tianxi was the best-selling computer in Chinese history. It sold more than 1,000,000 units in
2000 alone.[18]
2014–present: Purchase of IBM server lines and other acquisitions
After closing, Lenovo said that its goal was to become the world's largest maker of servers.
Lenovo also announced plans to start integrating IBM's workforce.[52] The acquisition added
about 6,500 new employees to Lenovo. Lenovo said that it has no immediate intent to cut jobs.
Lenovo said that positions in research and development and customer-facing roles such as
marketing would be "100% protected", but expected "rationalization" of its supply chain and
procurement.[53]
Motorola Moto X
On 29 January 2014, Google announced it would sell Motorola Mobility to Lenovo for US$2.91
billion. As of February 2014, Google owned about 5.94% of Lenovo's stock. The deal included
smartphone lines like the Moto X, Moto G, Droid Turbo, and the future Motorola Mobility product
roadmap, while Google retained the Advanced Technologies & Projects unit and all but 2,000 of
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the company's patents.[54] Lenovo received royalty free licenses to all the patents retained by
Google.[55] Lenovo received approval from the European Union for its acquisition of Motorola in
June 2014.[56] The acquisition was completed on 30 October 2014. Motorola Mobility remained
headquartered in Chicago, and continued to use the Motorola brand, but Liu Jun, president of
Lenovo's mobile device business, became the head of the company.[57][58]
In April 2014, Lenovo purchased a portfolio of patents from NEC related to mobile technology.
These included over 3,800 patent families in countries around the world. The purchase included
standards-essential patents for 3G and LTE cellular technologies and other patents related to
smartphones and tablets.[59]
In May 2015, Lenovo revealed a new logo at Lenovo Tech World in Beijing, with the slogan
"Innovation Never Stands Still" (Chinese: 创新无止境). Lenovo's new logo, created by Saatchi,
can be changed by its advertising agencies and sales partners, within restrictions, to fit the
context. It has a lounging "e" and is surrounded by a box that can be changed to use a relevant
scene, solid color, or photograph. Lenovo's Chief Marketing Officer David Roman said, "When
we first started looking at it, it wasn't about just a change in typography or the look of the logo.
We asked 'If we really are a net-driven, customer-centric company, what should the logo look
like?' We came up with the idea of a digital logo first [...] designed to be used on the internet and
adaptable to context."[60]
In early June 2015, Lenovo announced plans to sell up to US$650 million in five-year bonds
denominated in Chinese yuan. The bonds were sold in Hong Kong with coupon ranging from
4.95% to 5.05%. This is only the second sale of bonds in Lenovo's history. Financial
commentators noted that Lenovo was paying a premium to list the bonds in yuan given relatively
low costs for borrowing in US dollars.[61]
Lenovo said that its x86 servers will be available to all its channel partners. Lenovo plans to cut
prices on x86 products in order to gain market share.[62] This goes in alliance with IBM's vision
of the future around cloud technologies and their own POWER processor architecture.[63]
Lenovo's acquisition of IBM's businesses is arguably one of the greatest case studies on merging
massive international enterprises. Though this acquisition in 2005 ultimately resulted in success,
the integration of the businesses had a difficult and challenging beginning. Lenovo had
employees from different cultures, different backgrounds, and different languages.[64] These
differences caused misunderstandings, hampering trust and the ability to build a new corporate
culture. At the end of its first two years, Lenovo Group had met many of its original challenges,
including integrating two disparate cultures in the newly formed company, maintaining the Think
brand image for quality and innovation, and improving supply chain and manufacturing
efficiencies.[65] However, Lenovo had failed to meet a key objective of the merger: leveraging
the combined strength of the two companies to grow volume and market share.[65] In order to
achieve success, Lenovo embraced diversify at multiple levels- business model, culture, and
talent. By 2015, Lenovo grew into the world's number 1 PC maker, number 3 smartphone
manufacturer and number 3 in the production of tablet computers.[66]
In March 2017, Lenovo announced it was partnering with Fort Lauderdale, Florida-based
software storage virtualization company DataCore to add DataCore's parallel I/O-processing
software to Lenovo's storage devices.[67] The servers were reportedly designed to outperform
Storage Area Network (SAN) SAN arrays.[67]
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In 2017, Lenovo formed a joint venture with Fujitsu and the Development Bank of Japan
(DBJ).[68] In the joint venture, Fujitsu would sell Lenovo a 51% stake in Fujitsu Client Computing
Limited. DBJ would acquire a 5% stake.
In September 2018, Lenovo and NetApp announced about strategic partnership and joint venture
in China. As part of strategic partnership Lenovo started two new lines of storage systems: DM-
Series and DE-Series. Both storage systems using Lenovo hardware and NetApp software: DM-
Series using ONTAP OS and DE-Series SANtricity OS.
In 2018, Lenovo became the world's largest provider for the TOP500 supercomputers.[69]
In 2020, Lenovo became a preferred data center innovation provider for DreamWorks Animation
starting with Trolls World Tour.
In April 2021, Lenovo was reorganized into three divisions: The Intelligent Devices Group for
PCs, Smartphones, Smart Collaboration products, Augmented and Virtual Reality solutions and
Internet of Things devices, the Infrastructure Solutions Group (formally known as Data Center
Group) for smart infrastructure solutions, and the Solutions and Services Group focused on
services and industry-specific products.[71] That year, the company hit $60 billion in annual
revenues.[72][73]
On 8 October 2021, Lenovo withdrew its application to list on the Shanghai Stock Exchange just
days after it had been accepted by the exchange, citing the possibility of the validity of financial
information in its prospectus lapsing as the reason. The price of the company's shares on the
Hong Kong Stock Exchange dropped by over 17% following the news, which was its biggest
intraday decline in over a decade.[74][75]
Name
For the first 20 years of its existence, the company's English name was "Legend". In 2002, Yang
Yuanqing decided to abandon the Legend English name to expand beyond the Chinese home
market. "Legend" was already in use worldwide by many businesses whose products and
services may or may not have to do with technology,[78] making it impossible to register in many
jurisdictions outside China. In April 2003, the company publicly announced its new English name,
"Lenovo", with an advertising campaign including huge billboards and primetime television ads.
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Lenovo spent 18 million RMB on an eight-week television advertising campaign. The billboards
showed the Lenovo logo against blue sky with a slogan that read, "Transcendence depends on
how you think." By the end of 2003, Lenovo had spent a total of 200 million RMB on
rebranding.[13]
LITERATURE REVIEW
Global scenario
It is a difficult to say that the first laptop was look like a today laptop or not. The world first
laptop didn’t look like a today laptop it was too big with high weight but today we have a
book size laptop due to the technology expand. In April 1981 the world first laptop Osborne
was introduced with 64 K RAM and 4.0 MHz which price was $1795 and that was the first link
of the origin of laptop. Shortly after some year’s potential customer of Osborne they stop to
buying this laptop and waiting for the new laptop which was coming with new technology
and new features that name was kaypro II. New technology and price difference attract the
more potential customer because that price was $ 1595 which was less than previous and
also provide a big laptop screen. In this way the laptop technology increasing the laptop
market day by day and if we glance on the past laptop industry there are small consumer
target market where they have only some potential customers but today they have bigger
consumer market with a new challenging market. After in 1988 Compaq introduced their first
laptop Compaq SLT/ 286 with VGA graphics and it was the successful laptop this laptop sale
was 53000 units in a one year. Near the 1990 Compaq entering the retail market with the
Presario. They provide a first low price laptop and due to this action of price war born , lot of
the competitors are plunged in this war, especially IBM and Packard Bell into this market.
The Indian laptop industry is rising very rapidly because the consumer work life style is
change day by day, consumer needed are increasing they want those type of product which
is save their time, money and increasing their work efficiency, also available anytime or
anywhere. In simple words we can say that the laptop should only one thing which might
work as a human. Some of factor for increasing laptop sales such as for example where past
few decades ago laptop price used to be more than desktop but today laptop price is equal
to the desktop price. Technological world today and it cannot be ignored Indian laptop
industry has going on path of progress step by step just because due to the expansion of
technology in all over the world.
”The business environment of the firm consists of all the external influences that affect its
decision and performance. Environment influences can be classified by political, economic,
social and technological factor”.
Political factor – Laptop sales are growing very fast in developing countries. Due to the
changes of government policies that can affect the growth of sales for instance in 2005,
removal of import duties on laptops, India laptop sales growth are increase 94% while they
sales more than 350,000 unit which was really unexpected. India also has other logistics
issues which is creating problem for vendors such as Indian tax structure (excise duty, sales
tax and Octroi). Many investors found that Indian government has instability politics,
corruption, and slow decision making process as well unpredictability on foreign investment
or pricing and tax issues faces by Indian laptop companies. Now days Indian market also has
increased the speed of privatization so they are try to move into the government own
companies for minimize the deficit.
http://www.indiastrategy.com/polrisk.htm
Economical factor –
On the other hand Due to the Volatility in exchange rates laptop companies had face many
problems in the economy stabilizing. Indian laptop market now progress in the global
market. First time in 2005, Indian laptop market sales increasing which more than expected.
India has increase the growth of laptop sales 98,000 comparison to the previous year in 2004
was only 56,000 units which were rise by 176 percent.( Siliconindia; 14 May2006)
According to the report of IDC (U.S) In the India Hewlett Packard (HP) holding a market share
of 21.6 percent, has achieve the big part of sales segment while HCL ended up at 12.3
percent and Lenovo only 10.3 percent. Economy growth is also important role play in the
expansion of the market. These data show the HP hold a massive market in India amongst
other competitors companies such as HCL and Lenovo etc. Currency exchange also
important factor because most of the Indian laptop companies sales their product globally
and the currency going up down everyday that will affect directly to the industry financial
condition. Indian industries are escaped to the financial crisis because they are not depended
on the export growth. Increasing a laptop growth one of the most factor is duty free import
of laptop.
Social factor-Social factor such as income level or living condition, cultural, age distribution
etc influences the demand of the product. These such influences provide a way to
manufacturer the product that how they need to distribute in the different region or cultures
because in the India main greatest problem is poverty of population lots of person are
unable to buy those types of products but due the changing in living standard, giving a low
cost laptop by laptop companies or growth in the educated generation help to companies
are expand their market. Brand name is also important role play influence to consumer but
today’s consumer firstly look a technology rather than brand. According to the Indian
cultural perspective laptop sales are mostly rises in the big festival of such as deewali, Eid,
Christmas. For increasing the literacy rate of Indian population the government has started a
project for the backward class children.
For the increase product demand or preference. The One Laptop per Child Association, Inc.
(OLPC) is a U.S. non-profit organization running an affordable educational device for use in
the developing countries such as Africa India etc. . Its mission is “to create educational
opportunities for the world’s poorest children by providing each child with a rugged, low-
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cost, low-power, connected laptop with content and software designed for collaborative,
joyful, self-empowered learning.”
-http://en.wikipedia.org/wiki/One_Laptop_per_Child
Technological factor-
Global Technology development has provided an opportunity to businesses to stable in the
market in competitive advantage world. Today consumer decision making is depending on
the technology that what technology companies are giving to them. Laptop market share
increasing rapidly to the last decades in India and its main reason is changing a standard of
windows pattern or price, efficiency of power comparison to the PC market.
Technology innovation- Recently Indian HRD minister Mr. Kapil sibal introduced a low cost
laptop which is run by solar power and also including internet browser or media player. It’s
expected this device should provide by $ 35 dollars. Currently the HR ministry are trying to
bring down the device cost to $20 to $10. II’T and other technical research institution are
also research by the team and cover the large sort of problem and potential enhancements
for minimize the cost of this device to $10. (www.gurdian.co.uk)
RESEARCH OBJECTUIVE
Research objectives describe concisely what the research is trying to achieve. They summarize the
accomplishments a researcher wishes to achieve through the project and provides direction to the
study. A research objective must be achievable, i.e., it must be framed keeping in mind the available
time, infrastructure required for research, and other resources. Before forming a research objective,
you should read about all the developments in your area of research and find gaps in knowledge that
need to be addressed. This will help you come up with suitable objectives for your research project.
➢ To study how consumer behaviour for apparel is influenced by factors like monthly income,
gender and peer influence.
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RESEARCH METHODOLOGY
Research design: A research design is the determination and statement of the general research
approach or strategy adopted for the particular project. It is the heart of the planning. If the design
adheres to the research objectives, it will ensure that the client need will he served.
In order to achieve the objective it was necessary to talk to the suppliers and public to draws the
conclusions regarding the objective.
For visiting the suppliers and publics to collect the relevant information, questionnaire has to be
designed. The questionnaire was designed in such a manner to achieve the objective of the research.
The sample size taken is 50 respondents.
TYPE OF RESEARCH
Descriptive Research:
This is a kind of reach structure which is concemod with describing the characteristics of the
problem. In this way the main purpose of such a research design is to present a descriptive picture
about the marketing problems on the basis of actual facts .For this it is important to obtain the
complete and actual information about the subjects.
❖ Random Sampling:-This is the simplest and most popular technique of sampling. In it each unit of
the populations has equal chance of being included in the sample. This method implies that if N is
the size of the population and units are so be drawn in the sample, then the sample should be taken
in such a way that each of the samples has chance of being selected.
ii) Accurate mathematical tests may be applied to judge the randomness of the sampling method
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v) Each element in the population an equal chance of being included in the sample and all choices
are independent of each other
DATA COLLECTION
After the research problem has been defined and the research design has been chalked out the task
of date collection begins.
There are two types of data used. They are primary and secondary data. Primary data is defined as
data that is collected from original sources for a specific purpose. Secondary data is data collected
from indirect sources. (Source: Research Methodology. By C. R. Kothari)
❖ Primary Sources: These include the survey or questionnaire method as well as the personal
interview methods of data collection.
❖ Secondary Sources: These include books, the internet, company brochures, product brochures,
the company website, competitor's websites etc, newspaper articles etc. : Age between 21-35 P a g
e -18
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RESEARCH ANALYSIS
DELL PRODUCT:
Deals
Laptop Deals
Budget Laptop Deals
Student Laptops Deals
Gaming Deals
View All
Gaming Laptops
LENOVO PRODUCTS:
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The computer market has various products which can basically be classified into software and
hardware categories where each are sub-divided into various product segments. It is clear that
Dell is focused on the computer hardware market where it started with the desktop personal
computer as its initial product segment. Further product segments such as notebooks, servers
and computer peripherals have been added to its marketing mix as revenue increased. In
addition, Dell has partnered with major corporations such as Microsoft to ensure their products
are equipped with the latest software as per customers’ needs.
Dell mainly uses customer segmentation in its market strategy along with the product
segmentation where it is targeting several market segments and designing separate products or
offers for them. On one hand, geographically, Dell has segmented the market into the
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US/Americas, EMEA and Asia Pacific-Japan where each area has different pricing and marketing
strategies. On the other hand, demographically, there is no age, gender or race bias but income,
occupation and education play a role in deciding the customer needs and hence the product
offer.
It is also worth noting that from a behavioral view, Dell focuses on the benefits sought by
consumers such as low price and good quality and service. It also carefully selects customers with
relatively predictable purchasing patterns and low service costs, allowing itself an opportunity to
develop a core competence in targeting and keeping a specific database for target customers.
b) Transactional Customer:
The second is the transactional customer who is price-sensitive looking for low cost, more
reliable, quality service and added value products. These are mainly individual customers who
are more likely to access, choose and buy online as a mean to fulfill their product requirements
and customer needs. To obtain stable demand in this segment, Dell used the latest technology
products to target buyers who had regular upgrade purchase patterns, required little technical
support, and paid by credit card.
This report suggests that Dell’s customer segmentation is the main factor in their market strategy
as it is able to use these segments to understand the market needs and demands, this can
consequently influence its product segmentation strategy and the customized product offers that
Dell can introduce. Clearly it makes sense that Dell does not target a product segment until
demand and development standards have been established so it does not affect its brand image
and value proposition.
Dell’s value proposition is offering equivalent quality computers at a lower ‘price for
performance’. As many large corporations, Dell had to alter its positioning to maintain its
competitive advantage as well as its main value proposition. Therefore in the early days, Dell
positioned itself as a premium computer company through an easy and convenient internet-
based sales medium and outstanding service. Gradually this further growth and increased
advertising managed to establish Dell’s position in consumers’ minds and presented it as an
aggressive, value-oriented computer manufacturer.
Even when later this initial advantage has disappeared as more competitors caught up with
online marketing and price strategies. It is clear that Dell’s flexibility in extending its product
segments while maintaining its brand image and positioning towards its targeted customer
segments have enabled the company to maintain revenue and market share growth.
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Dell also extended their selection by adding computer hardware peripherals, computer software
as well as support services. Never the less, Dell does not manufacture the components of its final
products, but instead it relies on a number of trusted suppliers who have convenient warehouse
facilities within 15 minutes of Dell’s production centers. Analysts at Data monitor and Valanium
associates have been critical about this approach and considered Dell’s dependence on third
party suppliers as a major threat to its long term success, however Kraemer and Tuckwell have
praised this cost effective approach and its positive impact on Dell’s pricing strategies.
b) Place:
The place or distribution channel is one of Dell’s distinct advantages in their marketing mix. This
is because Dell uses a direct channel model where it sells its products directly to the customer
without need for a distributor or a middle man. Though it initially started with selling products
over the phone using a toll free number that customers can call free of charge, they were the first
to adopt advanced technology and use the internet as a direct channel to sell its products.
The direct channel model enabled Dell to reduce costs and minimize inventories and so it has
been able to pass these savings to customers in the form of lower prices.
c) Price:
Price is the amount of money charged for a product or service, or the sum of the values
consumers exchange for the benefits of having or using the product or service.
In this case Dell provides high quality computer systems at the lowest price to match the
customer’s expectation of value for money. It is also able to supply products at low price by
cutting out all costs of manufacturing parts as well as costs associated with retailers and
distributors.
As pricing remains a major factor in the customer’s buying decision, Dell uses the internet to get
a reasonably accurate idea of the market’s supply and demand, hence reflecting on its price
changes and promotions.
d) Promotion:
Promotion is the most important component of the four P’s so it is crucial to understand and be
able to promote a product. Here it can be seen how Dell uses many different promotional
methods to market their products, such as advertising on television, on the internet, in magazines
and newspapers as well as direct mail ad campaigns. It even uses sponsorships in professional
sports as well as product placements in films and television in the marketing techniques.
Perreault et al suggest that direct sales channels and direct customer relationship approach has
enabled Dell to fully understand its customer’s requirements and preferences as well as to
maintain its competitive edge.
It is clear from the above details that Dell’s current marketing mix is one of the main factors that
contribute to its competitive advantage. The way the company is able to use its marketing
strategy should allow the company to leverage its competitive advantage in its core market
segments. However, Dell should take advantage of the market opportunities that could
potentially increase the business revenue and strengthen its market position. These opportunities
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will require changes in the market strategy in order to fulfill the market demands, hence
increasing profits and market share.
Source – dreamstime.com
Lenovo’s competitors include Apple, HP, Dell Technologies, MI, Asus, Acer, Nokia,
OnePlus, Huawei, and Microsoft. Lenovo ranks 2nd in Gender Score on comparison
with its competitors. There are too many cheap products appearing in the world
which makes it difficult to survive the cut-throat competition.
As we see, Lenovo has stiff competition in the market as every other company wants
a larger market share.
Lenovo Marketing Strategy
1. Strong Brand Awareness
Lenovo has a brand presence as it provides a variety of products and markets the
brand in innovative ways to grab customer’s attention. Here is the image:
Advertising is the main way to promote your brand, from the above image as you see
it has created several different ads to create awareness. Lenovo has created strong
brand recognition in the PC market and steadily they are creating awareness of their
mobile phone segment also.
2. Social Media Strategies
This campaign heavily relies on social media. It has a strong social media presence
which helps their customers to know more and stay updated about various new
products in the market. Here is the social media handle of Lenovo:
Instagram Profile
Thus, this helps Lenovo to reach a wide range of audiences through Google
Adwords.
5. Influencers Marketing
Lenovo promoted its brand by influencer marketing from various people around the
globe.
Here are some of the youtube images of the following ad called #Goodweird:
Strengths
1. Brand name. Dell has a very strong brand reputation for quality products. Its brand is
valued at $ 7.5 billion.
2. Product customization. Dell allows its customers to customize their laptops. Such
services were not originally found within any other major computer retailer (and
currently only Sony and Toshiba allow that), but add great value to the customers and
provides Dell with a competitive advantage.
3. Environmental record. Dell is engaged in many green initiatives and has received
many rewards for being an eco-friendly business. This is a benefit when working with
public and government agencies.
4. Competency in mergers and acquisitions. Over the last five years Dell has spent $13
billion for successful mergers and acquisitions, which brought patents, new capabilities,
assets and skills to the business.
5. Direct selling business model. Dell doesn’t sell its products through big-box retail
outlets but instead sells directly to consumers and enterprises, keeping their already
thin profit margin to themselves.
Weaknesses
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1. Commodity products. The large stream of Dell’s revenues comes from computer,
especially laptop, sales, which is a commoditized product. Computer hardware
(commodity) products are sold with a very low profit margin.
2. Poor customer services. Once praised, Dell’s customer services deteriorated due to
outsourcing its call centers offshore. Dell invested a large sum of money in fixing this,
but hasn’t yet regained its previous reputation for customer services.
3. Low investments in R&D. The company spends a much lower percentage of its
income on R&D that its main competitors and thus, missed an opportunity to
develop strong products for smartphones and tablet markets as well as to learn new
skill and capabilities.
4. Weak patent portfolio. Due to low spending on R&D Dell hasn’t acquired a strong
portfolio of patents and is now finds it hard to compete in lucrative smartphones and
tablets market.
5. Too few retail locations. Selling products online saves money and allows for
product customization but provides less visibility for the products. The consumer
finds it hard to trust the products if it can’t hold it first in his hands.
6. Low differentiation. Low price was once Dell’s competitive advantage but the
company is no longer able to provide competitive prices. Apart from the price, Dell’s
products are little differentiated from competitors’ products and are in competitive
disadvantage if the price offered by competitor is lower.
Opportunities
1. Expand services and enterprise solutions divisions. Dell provides various services
(cloud, security and infrastructure) and enterprise solutions (servers, networking and
storage), which are the most profitable Dell’s business at the moment. Dell business
should focus on growing these divisions as they promise better growth opportunities
and higher profit margins.
2. Obtain more patents through acquisitions. If Dell wants to diversify, it needs new
technology patents and new ideas. Dell hasn’t properly established its R&D facilities
to discover new technologies and patents, so the only feasible way to obtain patents
and technologies is to acquire other companies.
3. Strengthen their presence in emerging markets. Emerging economies are the
fastest growing markets for laptops, tablets and other electronic devices. Dell has a
good presence in these markets but should strengthen its position as the company
experiences declining market share.
4. Tablet market growth. Tablet market is expected to grow in double digits for the
next few years and the company has a great opportunity to release new tablet
models and benefit from the market growth.
Threats
1. Growing demand for smartphones and tablets. With a lower price and strongly
improved capabilities, consumers often choose tablets and smartphones over
laptops. The growing demand for the previous devices takes a share out of laptops,
the main stream of revenue for Dell.
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2. Profit margin decline on hardware products. Dell’s main income is from selling
hardware products, which prices will increase in the future due to rising raw material
prices. This will add to costs for Dell and will further cut the profit margin.
3. Slowing growth rate of the laptops market. Growth rate of the computer market is
slowing down and in the near future the markets will become saturated. It will prove
hard for Dell to compete in such market or at least fight back the lost market share.
4. Intense competition. The company faces intense competition in all its business
segments. It competes in terms of price, quality, brand, technology, reputation,
distribution and range of products, with Acer, Apple, HP, IBM, Lenovo and Toshiba.
Strengths
1. Vertical integration. Lenovo’s strategy to vertically integrate has paid off. The
business can keep costs low, keep up with the pace, control inventory and rely less on
original equipment manufacturers (OEM).
2. Knowledge of China’s market. Lenovo has emerged in China and continues to be
one of the largest players in homeland market. The firm’s knowledge of China’s
market and the ability to suit Chinese tastes resulted for the wide acceptance and
support for the business’ products.
3. Low cost production. Lenovo manufactures nearly half of its hardware and has set
up production plants in low cost regions such as China, Brazil and Argentina to
benefit from higher margins. It is also able to manufacture low cost products that are
price competitive.
4. Competency in mergers and acquisitions. Lenovo has been continuously acquiring
firms to bring patents, new capabilities, assets and skills to the company. Most
importantly, through successful acquisitions and joint ventures, Lenovo accessed new
markets and distribution networks. Compaq is the most notable and successful
Lenovo’s acquisition to date.
5. Strong patents portfolio. With an acquisition of Compaq and Stoneware and a help
of firm’s R&D, Lenovo has gathered an important patents portfolio related to its PC
and software businesses.
6. Synergy of knowledge and diverse workforce. Instead of traditional headquarter
model, Lenovo manages 3 centers of excellence around the world (US, China and
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Singapore). Combining different skills and resources results in synergy and premium
quality products.
Weaknesses
1. Poor brand perception in the developed economies. Lenovo’s primary market is
Asia, where it sells most of its production. The company finds it hard to access US and
Europe markets as its brand perception is low there.
2. Low differentiation. Apart from the low price, Lenovo products are little
differentiated from competitors’ products and are in competitive disadvantage if the
price offered by competitor is lower.
3. Commodity products. The large stream of Lenovo’s revenues comes from computer,
especially laptop, sales, which is a commoditized product. Computer hardware
(commodity) products are sold with a very low profit margin.
Opportunities
1. Growing India’s smartphone market. India’s smartphone market is one of the least
penetrated among Asia/Pacific countries. Lenovo could easily penetrate India’s
market with its already successful low price LePhone.
2. Growth of tablets market. Lenovo currently ranks as 4th biggest tablets seller. The
business could increase its market share by introducing better quality products.
3. Obtaining patents through acquisitions. If Lenovo wants to sustain its growth, it
needs to obtain more patents and the best way to do that is to acquire the firms
holding them, as it did with IBM’s Compaq.
4. Tablet market growth. Tablet market is expected to grow in double digits for the
next few years and the company has a great opportunity to release new tablet
models and benefit from the market growth.
Threats
1. Profit margin decline on hardware products. Lenovo’s main income is from selling
hardware products, which prices will increase in the future due to rising raw material
prices. This will add to costs for Lenovo and will further cut the profit margin.
2. Slowing growth rate of the laptops market. Growth rate of the computer market is
slowing down and in the near future the markets will become saturated. It will prove
hard for Lenovo to compete in such market and continue to grow its market share.
3. Saturated smartphone markets in developed countries. Although Lenovo does
not compete in the developed economies with its smartphones it will have difficulties
in growing its smartphone division and entering developed economies later as the
smartphones market there is already saturated.
4. Rapid technological change. The serious threat that Lenovo and the other tech
companies are facing is a rapid technological change. Companies are under the
pressure to release the new products faster and faster. The one that cannot keep up
with the competition soon fails.
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5. Intense competition. The company faces intense competition in all its business
segments. It competes in terms of price, quality, brand, technology, reputation,
distribution and range of products, with Acer, Apple, Dell, HP and Toshiba.
We recommend all Dell laptops from the XPS series because they are the best. The model is
expensive, but the laptops produced are of high quality and, therefore, worth the price. The
laptops are the best, and this is seen from their display and their audio quality.
The design is good, and it has a comfortable keyboard. Most importantly, the battery life is
strong, and the laptop delivers high performance. You can rarely find a design to match
laptops from the XPS series.
Factors To Consider When Comparing Lenovo and Dell : Both Lenovo and Dell are good
companies for making quality laptops, but there are some things you need to consider to get
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the laptop you are looking for. These include budget, design, performance, customer service,
and ability to repair.
Budget: This is a critical factor, and it is about how much you are willing to spend on the
laptop. If you compare these two companies, Dell has the more expensive laptops. However,
if you want to go for high-end products, the price still is higher for both companies.
Design: This means you are looking for the style and design you want your laptop to look
like. Dell and Lenovo have well-designed and stylish models; you must choose the best.
Performance:
Performance is also important since it tells you whether you will get quality or poor service
from the laptop. While Lenovo laptops are not categorized as high-powered, they are good
at certain things.
We all want our laptops to last for a while. This is why it is important to look for a laptop
whose repairing parts are available. A manufacturer that offers to repair services and good
customer service is the best to go for.
Both Dell and Lenovo are great options for buying a laptop. The two brands are popular in
producing high-end devices. However, the main difference between the two is the prices
they offer on their products.
Usually, Dell products are highly-priced while Lenovo products are reasonably priced. When
comparing these two brands, the model you will go for will determine the prices and the
specifications.
Components:
The processor is one of the components to look for for a good laptop between the two
brands. Lenovo laptops have an Intel processor that allows the user to do different things on
the laptop. Dell also has a lot of laptop models with Intel processors.
Gaming:
Some of the Lenovo models come with a graphic card and can deliver high-quality pictures,
which is good for gamers and people who love streaming videos.
Dell laptops also have the NVIDIA graphic card to help produce high-quality graphics and
gaming. So picking either Lenovo or Dell has no difference in gaming because both options
offer a good gaming experience.
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Battery Life:
Lenovo computers use six-cell batteries with more than six hours of run time. The batteries
perform much better compared to those in Dell computers.
Lenovo offers customers various ways to get in touch if they are experiencing
problems with their laptops. This includes using social media pages, live chats, or the
company’s website.
Moreover, the laptops come with a one-year warranty, and the company pays the shipping
fee when necessary. Dell also offers good customer service, but it does not beat Lenovo.
Generally, in terms of performance and quality, Dell is a good laptop. However, you will have
to spend more when purchasing it. On the other hand, Lenovo offers reasonable prices, but
the quality of the laptops is not as good as that of Dell.
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RESEARCH FINDING
1.Most of the LENOVO Laptop are used by young generation 15 to 30 and DELL is
2. DELL & LENOVO Both are focuses on young generation as they advertise & focuses on all
type people like businessman, student .
3. DELL & LENOVO both the LAPTOP are available easily in all around in India.
4. Profits are increasing year by year of both the companies as balance sheet and profit and
Laptop market has a good market potential in the country as compared to other consumer
Goods. Laptop is necessary or basic thing in human life. Therefore, laptop having
Most quality as well as reasonable price may achieve large market size. From my study, some
Suggestions have been forwarded which may be applicable for the concerned authorities.
Attractive sales promotion tools can easily increase sales of laptop that must be related
With cash prizes. Therefore, the laptop manufacturers are advised to spend adequate
Amount of money on the sales promotional tools. It is found that most of consumers are not
Loyal to any particular brand of laptop, so the concerned company is well advised to
Electronic media are more effective, so the design and story of advertisement should be
Attractive and appealing to the consumers. People are not conscious about their gadget
of laptop among the consumers that will help to increase demand for laptop product by
almost 40%.
• The is suggested that the president brand must take necessary steps to improve the
• The new customer percentage is low in compared to existing customers. The company
Must capture the new customers to improve the sales and maximizing the existing
Profit.
• From consumer observation most of the consumers are not satisfied with Lenovo
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Brand especially their processor are not good .but DELL also give good processor but that’s
product price also high.
• It is interprets that the Lenovo company must take better step to improve the
Manufacturing style to reduce the competition and to make their brand as a monopoly
On the market.
• In general the dell company must follow some pricing strategy to cut the entire
LIMITATION OF STUDY
Limitations of the study
➢ Sample Size: The number of the units of analysis I have used in my study is dictated by the
type of research problem I am investigating. My sample size is only 50 and so it will be
difficult to find significant relationships from the data, as statistical tests normally require a
larger sample size to ensure a representative distribution of the Population and to be
considered representative of groups of people to whom results will be generalized or
transferred.
➢ Market size: The study conducted on one market (Fashion apparel and shoes) in Kolkata.
The result of this study may differ from other markets. Also, different cultures may lead to
Different results even for the same market.
➢ Time Constraints: I did not get requisite time to complete the paper as I needed to work
omit during my academic time period and so if I could have been got more time the
research would have been more accurate.
➢ Selection of the respondents: Sampling errors occur when a probability sampling method
issued to select a sample, but that sample does not reflect the general population or
appropriate population concerned. For example, I conducted a survey to obtain my research
results, my samples (participants) were asked to respond to the survey questions. However, I
had limited ability to gain access to the appropriate type or geographic scope
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Technology has brought a significant shift across several industries and continues to
transform the world with every passing day. Aptly put into words by American writer and
futurist Alvin Toffler, technology has been serving as “the great growling engine of change”.
With the evolving technology, the laptop industry in India is taking a step forward too. It is
merging the power of technology with its way of working to pave the path for a connected
future. The aim is to bring in sync everything, everyone from any and every corner of the
world.
The Internet of Things is one of the tools leading to the evolution of technology and helping
the laptop industry to grow. Providing end to end solutions for the laptop industry and
minimizing the internal concerns in the gadgets that cause a delay, IoT has been of great
help to the sector.
IoT has transformed the world we live in by connecting any physical object, be it a
smartphone, laptop, wearable device or heavy industrial machinery etc. to the Internet. It has
enabled interaction between them and is thus getting everything in sync. Keeping in mind
the current figures, the exponential rise from 4.9 billion in 2015, Gartner has estimated that
25 billion “things” will be connected to the internet in the near future.
The laptop market is being driven by the increasing consumer demand owing to the
proliferation of better internet infrastructure. The industry is further aided by the commercial
demand for laptops and is also thriving due to the adoption of laptops across multiple
sectors and is expected to continue flourishing in the forecast period. IoT has helped the
industry to expand to a great extent and that is one of the reasons why developers are more
focused on developing software and hardware that can be a part of it. More than 100
companies and nearly 70% of start-ups in India are now offering IoT-enabled solutions to
businesses, and the number is only expected to grow by multifold in the future.
The IoT revolution has augured well for the laptop industry. The use of IoT has helped in the
business transformation initiatives of consumer tech firms. The shift towards IoT has offered
advantages such as automation adoption, improved quality control, and predictive
maintenance for the laptop industry. It has also enabled higher-quality consumer data and
insights, products innovation, and effective risk mitigation.
The scale of the Internet of Things is almost impossible to comprehend, but forecasts by
research firms, forecast it will be made up of 26 billion to 30 billion connected objects by
2020. To put that into context, in 2012, Cisco estimated the total number of internet-
connected devices at 8.7 billion (including phones, tablets and computers). The internet is
not just another tool used solely by humans anymore, in fact, it is now forming an
P a g e | 42
automated and intellectually connected biosphere that syncs various verticals and things
together. Helping people interact on a device and shifting the base to another gadget in
proximity while setting up a cloud, IoT is revolutionising the world one thing at a time.
CORONAVIRUS IMPACT:
Major players in the laptops market are Dell, The Hewlett-Packard Company, AsusTek
Computer Inc., Apple Inc., Acer Inc., Lenovo Group Ltd., Microsoft Corporation., Micro -
Star International Co. Ltd., Samsung Electronics Co. Ltd., and Huawei Investment &
Holding Co. Ltd.
The global laptops market is expected to grow from $106.24 billion in 2020 to $115.88
billion in 2021 at a compound annual growth rate (CAGR) of 9.1%. The growth is mainly
due to the companies rearranging their operations and recovering from the COVID-19
impact, which had earlier led to restrictive containment measures involving social
distancing, remote working, and the closure of commercial activities that resulted in
operational challenges. The market is expected to reach $149.02 billion in 2025 at a
CAGR of 6.5%.
The laptops market consists of sales of laptops by entities (organizations, sole traders,
and partnerships) that provide laptops which are portable and compact personal
computers with the same capabilities as a desktop computer.Only goods and services
traded between entities or sold to end consumers are included.
Laptop computers, also known as notebooks, are small computers that users can use in
a variety of environments.
Major companies operating in the laptop industry are focusing on developing advanced
technological solutions for laptop.For instance, in June 2020, Lenovo, a China based
computer manufacturing company launched Flex 5G laptop with Windows 10 at CES
2020 which is acclaimed to be the world’s first 5G laptop running on Windows 10.
The laptop which is also called as Lenovo Yoga 5G, is powered by 8cx 5 G Snapdragon
chipset from Qualcomm, and operates on Windows 10 Pro. It also consists 8GB of RAM
and 256GB of on-board storage.
The laptops market covered in this report is segmented by type into ultrabook; netbook;
notebook; others. It is also segmented by end-use into personal; business; gaming.
In June 2018, Sharp Corporation, a Japan based company that designs and
manufactures electronic products acquired Toshiba’s personal PC business for $36
million. This acquisition also includes the issuance of $1.8 billion in new shares by
Sharp to buy back stock from banks. The acquisition will allow Sharp to access PC
market but under the control of Foxconn which acquired Sharp in 2016. Toshiba is a
Japanese multinational engineering and electronics conglomerate corporation.
The growing internet penetration is expected to fuel the growth of the laptops market in
the forecast period.Globally, the number of internet users is increasing by more than 8%
annually and the average global internet user spends over 6 1?2 hours per day online.
More than three quarters of the world’s larger economies of internet users go online via
desktops and laptops. In 2020, globally, there are more than 4.66 billion people who are
using the Internet (about 60% of the world’s overall population). Over the twelve months
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up to July 2020, over 346 million new users arrived online, leading to average growth of
around 950,000 new users per day. Therefore, the growing internet penetration is
expected to drive the growth of the laptops market during the period.
The increasing demand for smartphones and tablets is expected to hamper the growth
of the laptops market in the forecast period.Smartphones and tablets can now be the
main computing devices, and the efficiency disparity between laptops and smartphones
continue to grow as consumers update their smartphones more quickly than their laptop
computers.
Also, many smartphones are available today in the market which work more efficiently
than a laptop. There was an approximate 4.3 billion smartphones which were in use
worldwide by the end of 2017, which is thrice the number of laptops and is expected to
continue to rise by 9% each year and reach 7.2 billion by 2023. Therefore, the
increasing demand for smartphones is expected to restrain the growth of the laptops
market.
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CONCLUTION
Brand is a guarantee, an assurance for a defined standard of quality for the first time and for every
time. Brand is name or logo that plays the role in the mind of the customer. Brands do not compete
in the product area but compete for the mind space of the customer. Branding is an effective
marketing strategy tool that has been used with frequent success in the past. Branding can be an
effective and powerful tool for all types of business organizations. If brand owners use their product
correctly, the payoffs can be substantial. However, if brands are mismanaged, the results can be
damaging. From the overall research I came to the conclusion that brands have an effect on the
consumer mind in many ways like quality, rates, income, age group’s etc. Even in the fashion
industries brand have a significant effect on consumer behaviour. Based on the research conducted,
the conclusion is that the branding has a significant influence on the customers when purchasing
shoes, apparel. The decision that respondents make when choosing the brand has proven to be
quite significant to them. The results showed that 20% of respondents considered that a decision on
brand isn’t important, 18% of the respondents considered that a deciding on brand less important,
14 percent of respondents considered it partly important, 16 percent of respondents considered
that the decision matters and 34% of respondents considered a decision on which brand very
important. 30 respondents think Nike has a better brand value and 20 respondents preferred
Adidas. Respondents opt for a particular brand because it leaves a better impression on them
Consumer Perception has more influence on Consumer Buying Behaviour instead of Brand Image
and Consumer Awareness. Researchers can do more study with more variables to know the
influence of variables. Similarly, marketers can work to build strong perception of consumers about
their brands by using multiple ways i.e. advertisement, quality, availability etc. Since market
conditions are constantly changing, the new role of brand management as an integral part of holistic
marketing is more important than it ever was. According to the situation on current retail market, it
is very important that enterprises manage their brands so they can flexibly fulfil desires and wishes
of their customers. In order to create a competitive brand, they need to pay attention to their
customers constantly. In current retail environment, consumers are overwhelmed with plenty of
brands and products. Market conditions are constantly changing; therefore, it is concluded that
change is inevitable hence producers have to take up challenges in a positive way and undergo the
production processes as per the latest trend and lifestyles of the people
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Bibliography
Books:
➢ Philip Kotler, Kevin Lane Keller, 15th Edition, Pearson Prentice Hall, 2016
➢ Predictably irrational: The Hidden Forces That Shape Our Decisions by Dam Ariely
➢ Buyology: Truth and Lies About Why We Buy and the New Science of Desire by
Martin Lindstorm
➢ Sticky Branding: 12.5 Principles to Stand Out, Attract Customers, and Grow an
P a g e -57
➢ edition Teleju Prakashan 2051. Khan M.Y. and Jain P.K. Management Accounting 4
➢ th Edn. New
➢ Management 1
➢ Planning and Control "5th ed. New Delhi: Prentice Hall of India
➢ 1992.
➢ Company, Glasgow.
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Appendix
1. What is your name?
Ans:
15-20
20-25
25-30
30-35
3. Gender?
Male
Female
Student
Business
Employed
Self employed
very low
normal
high
necessary
Dell
Lenovo
Hp
Asus
Ans:
Yes
No
30000-40000
40000-50000
50000-60000
Upto 60000