12 lenovo group management s discussion and analysis business review during 2004 05 fiscal year successfully strengthened its leadership position in the china pc market through implementing strategic initiatives set beginning of share for products reached as high 28 percent quarter ended december with a clear focus on pre empted irrational competitive pricing tactics second tier domestic vendors withstood intensified competition from foreign brands strategically modified product line to capture opportunities segments volume growth potential leveraging customer oriented sales model efficient operating platform result divestiture non core businesses expansion into emerging township segment consolidated turnover recorded slight decrease 2 7 while shipments grew average excluding impact increased by 1 6 full maintained overall gross margin at approximately 14 8 achieved 4
