Vertical integration: In an organization’s management, vertical integration is an understanding in which the supply chain is partially or wholly owned by the company (Folsom 2007, 94). In common practice the supply chain different market-specific products that at the end satisfy a common requirement (consider horizontal later). Vertical integration has helped Lenovo in avoiding the hold-up problem. According to Rogerson (1992) hold-up problem arises when two parties say Lenovo and its suppliers work efficiently by cooperating but at a time refrain from doing so doing to the ill idea that one may give the other party an improved bargaining power, and thus reduce its own profits. Lenovo’s approach to vertically integrate has been fruitful. The company has been capable of keeping low costs, keep up with both domestic and international competitions while relying less on original equipment manufacturers (OEM)