77789611 IBM Case Study Strategic Management Final Report

8/16/2019 77789611 IBM Case Study Strategic Management Final Report

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Strategic Management

Shazil Ahmed

Saad Akhtar

Ibrar Chaudary

Rao Kamran

Muhammad Umer Jafar

Muhammad Naqeeb Arshad


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Table of Contents

INTRODUCTION TO INTERNATIONAL BUSINESS MACHINES....................................2VISION AND MISSION STATEMENTS........................................................................3

OBJECTIVES & STRATEIES....................................................................................!

"ORTER#S $IVE $ORCES MODEL............................................................................. %

$INANCIAL ANALSIS..............................................................................................'

C"M MATRI(...........................................................................................................)

E(TERNAL O""ORTUNITIES AND THREATS.............................................................*

Opportunities......................................................................................................*

Threats...............................................................................................................*

E$E MATRI(............................................................................................................+

INTERNAL STRENTHS AND ,EA-NESSES..........................................................

Strengths..........................................................................................................

Weaknesses......................................................................................................

I$E MATRI(...........................................................................................................2

S,OT MATRI(...................................................................................................... !

/S"M................................................................................................................... )RAND STRATE MATRI(...................................................................................20

BC MATRI(......................................................................................................... 2

IE MATRI(.............................................................................................................22

S"ACE MATRI(......................................................................................................23

CONCLUSION....................................................................................................... 2!

RECOMMENDATIONS............................................................................................ 2%

,OR-S CITED...................................................................................................... 2'

A""ENDI(............................................................................................................. 2)

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INTRODUCTION TO INTERNATIONAL BUSINESSMACHINES

International Business Mahines or IBM !as founded in "### as $%erman %ollerith and the

&abulatin' Mahine Com(any)* Its name !as later han'ed to IBM in "+,- !hen it beame a

.ortune /00 om(any* It is kno!n to ha1e more (atents than any other Amerian teh

om(any* It !as taken by the US 'o1ernment at the be'innin' of 2orld 2ar II in the !ar

effort and 'i1en a one (erent (rofit3 !hih it used to fund !ar 1itims and or(hans*

IBM !as one of the leader brands of I*& industry !hih is basially related to om(utin'

1arious dimension of tehnolo'y !eather it is about 'ad'et or the soft!are* It de1elo(ed

(roduts from (unh4ard tabulatin' mahines to room sized alulators and main frame

om(uters*

In "+#03 the om(any introdued IBM 5ersonal Com(uter 65C7 in !hih the (roessor ame

from Intel and o(eratin' system from Mirosoft* In "++,3 the om(any introdued la(to(s

!hih !ere named &hink5ad* IBM introdued ost effeti1e tehnolo'ies like instead of (uresilion hi(3 they introdued a blend of silion and 'ermanium* IBM has 8n 9emand

Inno1ation ser1ies !here different teams offer business transformation and tehnolo'y

onsultation ser1ies*

&oday3 IBM is the lar'est information tehnolo'y om(any and the ei'ht lar'est om(any in

the !orld !ith !orkin's in o1er ":0 ountries* More than ;0< re1enue of the om(any is

'enerated from outside of US*

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VISION AND MISSION STATEMENTS

Vision Statement“Solutions for a small planet”

Mission Statement

At IBM3 !e stri1e to lead in the in1ention3 de1elo(ment and manufature of the industry=s

most ad1aned information tehnolo'ies3 inludin' om(uter systems3 soft!are3 stora'e

systems and miroeletronis*

2e translate these ad1aned tehnolo'ies into 1alue for our ustomers throu'h our

(rofessional solutions3 ser1ies and onsultin' businesses !orld!ide*

Proposed Vision Statement

“To maintain quality, by continuous innovation and creativity, and to satisfy consumers”

Proposed Mission Statement

IBM stri1es to (ro1ide the !orld !ith leadin' inno1ations in the I& industry3 for (eo(le !ho

a((reiate the brands quality* 5roduts of utmost reliability and ri'idness inlude Com(uter

systems3 soft!are3 stora'e systems > miroeletronis* IBM (ro1ides unmathed build

quality kno!n for its durability* 2e are ommitted to stay in the market as a ontinuous

leader in tehnolo'y and inno1ation and at the same time bein' (rofitable for our in1estors*

2e follo! the belief of res(et for the indi1idual3 the best ustomer ser1ie and su(erior

aom(lishment of all tasks* 2e 'i1e ontinuous moti1ation3 a((raisal and (romotions to our

em(loyees* IBM is ommitted to en1ironmental leadershi( in all of its business ati1ities3

from its o(erations to the desi'n of its (roduts and use of its tehnolo'y*

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Component Check

IBM?s Mission Statement 5ro(osed Mission Statement

Customers

5roduts

Markets

&ehnolo'y

Conern for sur1i1al3 'ro!th >

(rofitability

Self4one(t

Conern for em(loyees

OBJECTIVES & STRATEGIES

IBM is re(ositionin' itself from a om(uter om(any to an information tehnolo'y ser1ie

om(any throu'h a series of aquisitions and di1estitures* &hirteen aquisitions of

a((ro@imately -*# Billion !ere om(leted enablin' IBM to e@(and its business* Sine then

IBM onentrated on beomin' stron'er in hi'h4added businesses* It onentrates on

de1elo(ment and manufature of the ad1aned information tehnolo'ies3 inludin' om(uter

systems3 soft!are stora'e systems and miroeletronis* It en'a'ed /03000 em(loyees in an

online intranet disussion o1er a (eriod of three days usin' its Jam tehnolo'y IBM 'enerated

o1er -;3000 ideas throu'h this*

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PORTER’S IVE ORCES MODEL

Threat of New Entrants

It is relati1ely lo! as this field requires hea1y in1estment in researh and inno1ation*

Bargaining Power of Customers

&here are a lot of similar (roduts a1ailable !hih makes the (o!er of bar'ainin' hi'her*

Bargaining Power of Suppliers

In most areas of IBM3 there are number of su((liers !hih make the (o!er of su((liers lo!*

Substitutes

IBM (ro1ides number of (roduts !hih ha1e lo! or no substitutes*

Competitive Rivalry

It is hi'h as there are lar'e om(anies like %53 Mirosoft and 9S to om(ete IBM*

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INANCIAL ANAL!SIS

Current Ratio (2005 ! -/3;;"3000D/3"/,3000 E 1.3

Current Ratio (200" ! --3;;03000-030+03000 E 1.1

Return on #quity 6,00/7 E :3+D-3000DD30+#3000 E 24%

Return on #quity 6,00;7 E +3-+,3000,#3/0;3000 E 33%

$rofit %ar&in 6,00/7 E :3+D-3000+"3"D-3000 E 8.7%

$rofit %ar&in 6,00;7 E +3-+,3000+"3-,-3000 E 10.4%

'ebt to #quity Ratio 6,00/7 E :,3;/03000DD30+#3000 E 2.2

'ebt to #quity Ratio 6,00;7 E :-3:,:3000,#3/0;3000 E 2.6

#arnin&s per Sare 6,00;7 E +3-+,3000,0:3;;D3,,D E 4.5%

Sales )ro*t 6,00;7 E 6+"3-,-30004+"3"D-30007+"3"D-3000 E 0.3%

+sset )ro*t 6,00;7 E 6"0D3,DD30004"0/3:-#30007"0/3:-#3000 E 2.3%

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CPM MATRI"

Critica! S"ccess

#actors

$eihts &'M Microso(t )P *+S

,ate Score ,ate Score ,ate Score ,ate Score

'iversification 0*" D 0*D - 0*- " 0*" - 0*D

inancial

position

0*"/ - 0*; , 0*D , 0*D " 0*"/

%ar-et sare 0*, , 0*- - 0*# , 0*- D 0*;

+dvertisement 0*, " 0*, , 0*- - 0*; " 0*,

Customer relation 0*" - 0*- , 0*, D 0*D " 0*"

%ana&ement 0*0/ , 0*" - 0*, D 0*"/ D 0*"/

R.' 0*, - 0*# - 0*# , 0*- , 0*-

--/ 1 2.8 3.1 2.25 1.

&he C5M sho!s the ritial suess fators for om(anies3 !hih !ould be same for all in a

'i1en eonomy* Se1en fators !ere tested amon' om(etitors of IBM 6i*e* Mirosoft3 %53

9S7* Mirosoft holds a stron' om(etiti1e (osition amon' its om(etitors follo!ed by IBM3

%5 > 9S*

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E"TERNAL OPPORTUNITIES AND THREATS

OpportunitiesFlobalization in order to balane the flutuations in different eonomies

Create (roduts a((ealin' to a youn'er 'eneration3 e*'* i5od

Use (atents to 'enerate re1enue

.ous more on 8M 6":*+< re1enue inrease7

%ire and use international e@(ertise

Threats

81er reliane on de1elo(in' eonomies like India 6D#< 'ro!th7

Unstable eletronis market

Chan'e in tehnolo'y 6i5ad7

Customers ha1e lo! s!ithin' osts

Ra(id (rodut de1elo(ment from om(etitors

.iere om(etition from Mirosoft > %5

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EE MATRI"

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-),*/-S

81er reliane on de1elo(in'

eonomies like India 6D#<

'ro!th7

0.06 1 0.06

Unstable eletronis market 0.06 2 0.12

Chan'e in tehnolo'y 6i5ad7 0.1 3 0.3

Customers ha1e lo! s!ithin'

osts

0.07 2 0.14

Ra(id (rodut de1elo(ment from

om(etitors

0.1 3 0.3

.iere om(etition from

Mirosoft > %5

0.1 3 0.3

--/ 1.00 2.2

PP,-&-&*S

* *-*,/ #/C-,S $*&)- ,/-& $*&)-*+

SC,*

Flobalization in order to balane

the flutuations in different

eonomies

0.05 3 0.15

Create (roduts a((ealin' to a

youn'er 'eneration3 e*'* i5od

0.16 1 0.16

Use (atents to 'enerate re1enue 0.04 2 0.08

.ous more on 8M 0.1 2 0.2

%ire and use international

e@(ertise

0.16 3 0.48


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&he . matri@ sho!s 1arious o((ortunities to be a1ailed by IBM and the threats it faes*

After listin' them3 !ei'hts !ere assi'ned aordin' to their im(ortane and the de'ree to

!hih they affet the om(any* &he !ei'hts are industry s(eifi and assess the im(ortane

of eah fator in terms of sur1i1in' in the industry* &he ratin's !ere 'i1en as the follo!in'G

"* Is the $res(onse is (oor)*

,* Is the $res(onse is a1era'e)*

D* Is $res(onse is abo1e a1era'e)

-* Is $res(onse is e@ellent)*

&he !ei'hted sore alulated by multi(lyin' the !ei'hts !ith the rates assi'ned* &he sum of the total !ei'hted sore for o((ortunities and threats is alled the total !ei'hted sore3 !hih

for IBM are ,*,+* &his tells us that the business is (erformin' belo! a1era'e and is not

a(italizin' on its o((ortunities neither is reduin' or a1oidin' threats*

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INTERNAL STRENGTHS AND #EA$NESSES

StrengthsBrand name

Risin' re1enue to +" billion and risin' net inome to +*- billion

9i1ersifiation 6Soft!are3 hard!are3 finanin'7

Aquisition of 2athfire Com(any in ,00:

Inno1ationJam a(ability

Ranks seond in market a(italization3 net inome3 and lon'4term 'ro!th behind Mirosoft

2ides(read o(erations in ":0 ountries

Risin' earnin's (er share 6,D< in ,00;7

Weaknesses

Hak of syner'y resultin' from a series of aquisitions and di1estitures

9iffiult to oordinate o1er four 'eo'ra(hial se'ments

&oo many em(loyees 6around -0030007

Conentration or fous on three maor di1isions or se'ments (uts the om(any at a 1ulnerable

(osition if re1enues from them deline

9elinin' (rofit mar'ins from hard!are 64:*;


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IE MATRI"* &-*,/ #/C-,S $*&)- ,/-& $*&)-*+

SC,*

S-,*-)SBrand name 0.0 4 0*D;

Risin' re1enue to +" billion and risin' net

inome by +< to +*- billion

0.1 4 0*-

9i1ersifiation 6Soft!are3 hard!are3

finanin'7

0.05 3 0*"/

Kno!n to ha1e more (atents than any other

Amerian tehnolo'y om(any

0.03 3 0*0+

Aquisition of 2athfire Com(any in ,00: 0.03 3 0*0+

Inno1ationJam a(ability 0.15 4 0*;

Ranks seond in market a(italization3 netinome3 and lon'4term 'ro!th behind

Mirosoft

0.05 3 0*"/

2ides(read o(erations in "0- ountries 0.05 3 0*"/

Risin' earnin's (er share 6,D< in ,00;7 0.1 4 0*-

$*/*SS*S

Hak of syner'y resultin' from a series of

aquisitions and di1estitures

0.05 1 0*0/

9iffiult to oordinate o1er four 'eo'ra(hial

se'ments

0.07 1 0*0:

&oo many em(loyees 6around -0030007 0.03 2 0*0;

Conentration or fous on three maor

di1isions or se'ments (uts the om(any at a

1ulnerable (osition if re1enues from them

deline

0.08 1 0*0#

9elinin' (rofit mar'ins from hard!are 64

:*;


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&he internal fator e1aluation matri@ sho!s that IBM?s internal (osition is abo1e a1era'e*

&hey an ome u( !ith more (lanned and inno1ati1e tehniques in order to im(ro1e their

(osition as there is room for im(ro1ement* I. 1alue is abo1e ,*/0 !hih means that IBM is

takin' ad1anta'e of its stren'ths and minimizin' !eaknesses* &he I. matri@ lists the

!ei'hts of eah internal fator3 both stren'ths and !eaknesses and assi'ns them ratin's and

then finds total !ei'hed sores to assess the internal (osition of IBM* &he !ei'hts are

industry s(eifi and assess the im(ortane of eah fator in terms of sur1i1in' in the

industry* Comin' to the ratin's3 they indiate ho! effeti1ely the firm?s urrent strate'ies

res(ond to the fator* &he total !ei'hted sore is found by multi(lyin' the !ei'hts !ith the

ratin's to find the !ei'hted sore*

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S#OT MATRI" Strenths

"* Brand name

,* Risin' re1enue to +"

billion and risin' net

inome by +< to +*-

billion

D* 9i1ersifiation

6Soft!are3 hard!are3

finanin'7

-* Aquisition of2athfire Com(any in

,00:

/* Inno1ationJam

a(ability

;* Ranks seond in market

a(italization3 net

inome3 and lon'4term

'ro!th behindMirosoft

:* 2ides(read o(erations

in "0- ountries

#* Risin' earnin's (er

share 6,D< in ,00;7

$eaknesses

"* Hak of syner'y

resultin' from a series

of aquisitions and

di1estitures

,* 9iffiult to oordinate

o1er four 'eo'ra(hial

se'ments

D* &oo many em(loyees

6around -0030007

-* Conentration or fous

on three maor di1isions

or se'ments (uts the

om(any at a

1ulnerable (osition if

re1enues from them

deline

/* 9elinin' (rofit

mar'ins from hard!are64:*;


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D* Use brand name to 'et

into Famin' 5Cs and

Ha(to(s for ,:< youth

in the !orld

S192::

$591::

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Strenths

"* Brand name

,* Risin' re1enue to +"

billion and risin' netinome by +< to +*-

billion

D* 9i1ersifiation

6Soft!are3 hard!are3

finanin'7

-* Aquisition of

2athfire Com(any in

,00:

/* Inno1ationJam

a(ability

;* Ranks seond in market

a(italization3 net

inome3 and lon'4term

'ro!th behind

Mirosoft

:* 2ides(read o(erations

in "0- ountries

#* Risin' earnin's (er

share 6,D< in ,00;7

$eaknesses

"* Hak of syner'y

resultin' from a series

of aquisitions and

di1estitures

,* 9iffiult to oordinate

o1er four 'eo'ra(hial

se'ments

D* &oo many em(loyees

6around -0030007

-* Conentration or fous

on three maor di1isionsor se'ments (uts the

om(any at a

1ulnerable (osition if

re1enues from them

deline

/* 9elinin' (rofit

mar'ins from hard!are

64:*; %5

S29-6::

D* Use Inno1ationJamtalent to en'a'e in

$- Strateies

"* Re(osition em(loyment

to more (rofitable

re'ions $39-1::

,* .ous on reasonable

horizontal aquisition to

safe'uard a'ainst

unstable eletronis

market $19-2::

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(rodut de1elo(ment.

S59-5::

&he S28& Matri@ of IBM lists its stren'ths3 !eaknesses3 o((ortunities and threats and then

de1ises strate'ies by ali'nin' the stren'ths !ith the o((ortunities3 !eaknesses !ith the

o((ortunities3 stren'ths !ith the threats and !eaknesses !ith the threats* &he aim is to

a(italize on the stren'ths by takin' ad1anta'e of the o((ortunities3 o1eromin' the

!eaknesses3 and underminin' the threats* Comin' to the stren'ths and o((ortunities ell3

Stren'th/ and o((ortunity , it an use the inno1ation am tehnique to a((eal to the demands

of a youn'er (o(ulation* Comin' to the !eakness o((ortunities ell3 !eakness " and

o((ortunity / ha1e been ali'ned by de1isin' the strate'y of eradiatin' lak of syner'y

!ithin business units*

Comin' to the stren'ths threat ell and ali'nin' the !eakness of han'e in tehnolo'y 6threat

D7 !ith the stren'th of risin' re1enues 6stren'th ,7 the strate'y arri1ed at is that IBM should

use re1enues to in1est in latest tehnolo'ies* Ali'nin' the !eakness of too many em(loyees

6!eakness D7 !ith the threat of o1er reliane on de1elo(in' nations 6threat "73 the om(any

should re(osition em(loyment in more (rofitable re'ions*

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%SPM

S-,/-* 1

nter the market for

Foo'le?s Android tablets*

S-,/-* 2

nter the market for

ell(hones*

* #/C-,S $*&)- /S -/S /S -/S

PP,-&-&*S

Flobalization in order to

balane the flutuations in

different eonomies

0.06 D 0*"# - 0*,0

Create (roduts a((ealin' to a

youn'er 'eneration3 e*'* i5od

0.06 - 0*,- - 0*"0

Use (atents to 'enerate

re1enue

0.1 4 4 4 4

.ous more on 8M 0.07 4 4 4 4

%ire and use international

e@(ertise

0.1 , 0*, D 0*D

-),*/-S

81er reliane on de1elo(in'

eonomies like India 6D#<

'ro!th7

0.05 4 4 4 4

Unstable eletronis market 0.16 , 0*D, " 0*";

Chan'e in tehnolo'y 6i5ad7 0.04 4 4 4 4

Customers ha1e lo! s!ithin'

osts

0.1 " 0*" - 0*-

Ra(id (rodut de1elo(ment

from om(etitors

0.16 - 0*;- D 0*-#

.iere om(etition from

Mirosoft > %5

0.05 D 0*"/ " 0*0/

$*/*SS*S

Hak of syner'y resultin' from a

series of aquisitions and

di1estitures

0.05 4 4 4 4

9iffiult to oordinate o1er four

'eo'ra(hial se'ments

0.07 4 4 4 4

+ 1 " a g e

S-,*-)S

Brand name 0.0 - 0*D; , 0*"#

Risin' re1enue to +" billion and

risin' net inome by +< to +*-

billion

0.1 4 4 4 4

9i1ersifiation 6Soft!are3

hard!are3 finanin'7

0.05 - 0*, D 0*"/

Aquisition of 2athfire

Com(any in ,00:

0.03 4 4 4 4

Inno1ationJam a(ability 0.03 4 4 4 4

Ranks seond in market

a(italization3 net inome3 andlon'4term 'ro!th behind

Mirosoft

0.15 4 4 4 4

2ides(read o(erations in "0-

ountries

0.05 D 0*"/ - 0*,0

Risin' earnin's (er share 6,D<

in ,00;7

0.05 4 4 4 4


21/30

&oo many em(loyees 6around

-0030007

0.03 4 4 4 4

Conentration or fous on three

maor di1isions or se'ments (uts

the om(any at a 1ulnerable

(osition if re1enues from them

deline

0.08 - 0*D, D 0*,-

9elinin' (rofit mar'ins from

hard!are 64:*;


22/30

&he uantitati1e Strate'i 5lannin' Matri@ states ritial internal and e@ternal suess fators

and e1aluates eah of them for alternati1e strate'ies that are made at Sta'e " and Sta'e , of

the Strate'y .ormulation .rame!ork* 2e ha1e arri1ed at t!o strate'ies for IBM namely

"7 nter the market for Foo'le?s Android tablets*,7 nter the market for ell(hones*

No! the relati1e attrati1eness of eah strate'y has been e1aluated a'ainst ritial internal

and e@ternal suess fators that an be im(ro1ed u(on or a(italized* 2ei'hts are the same

for these internal and e@ternal fators as !ere (re1iously used in the I. and . matri@

res(eti1ely* &hese are industry s(eifi and sho! the im(ortane of eah fator in terms of

sur1i1in' in the industry* .or e@am(le3 fiere om(etition from Mirosoft and %5 has been

assi'ned a hi'h !ei'ht of 0*0/ as it is e@tremely im(ortant to the !hole industry* Both

strate'ies are inter4related or similar as both relate to (rodut de1elo(ment*

Note that the strate'ies are mutually e@lusi1e and annot be assi'ned the same AS for a

'i1en fator* &he total attrati1eness sores 6&AS7 ha1e been arri1ed at by multi(lyin' the

!ei'hts for eah internale@ternal fator by the AS* &he sum of the total attrati1eness sores

for eah fator is then alulated *Strate'y " has a hi'her Sum &otal Attrati1eness

Sore6S&ASED*0"7 as om(ared to Strate'y , 6S&ASE,*;;7 !hih su''ests that IBM should

ado(t Strate'y "3 that is3 'o for in1estin' in Android tablets*

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24/30

BCG MATRI"+i;ision ,e;en"e ,e;en"es

inancial services ,/3"#" ,:*/-

$ublic "D3-0" "-*;/

/ndustrial ""3/D/ ",*;"

'istribution +30D- +*##

Communications #3;:+ +*-+

Small . medium businesses ";3+#" "#*/:

#% D3#/; -*,"

ter ,3:/; D*0"

-ota! 19423 100

23 1 " a g e


25/30

IE MATRI"

&he I Matri@ sho!s the I. total !ei'hted sores on the @4a@is and the . total !ei'hted

sores on the y a@is* 8n the @4a@is3 the total !ei'hted sore of ,*,+ sho!s an a1era'e internal

(osition of IBM in terms of a(italizin' on its stren'ths and o1eromin' its !eaknesses* 8n

the other hand3 on the y4a@is3 the total !ei'hted sore of ,*#+ is onsidered medium !hen !e

look at ho! the om(any is takin' ad1anta'e of its o((ortunities and underminin' the threats

it is e@(osed to*

&his results in the om(any fallin' in ell number / of the I Matri@ !hih su''ests that it

should use the hold and maintain strate'y that inludes a((lyin' intensi1e strate'ies like

market (enetration and (rodut de1elo(ment* &he I matri@ has been a((lied for the !hole

or'anization rather than its indi1idual di1isions so it is an o1erall analysis of the internal and

e@ternal (osition of IBM and !hat strate'ies it should em(loy onsiderin' its internal4

e@ternal (osition*

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26/30

SPACE MATRI"#inancia! Strenth &nd"str? Strenth Competiti;e

/d;antae

*n;ironmenta!

Strenth

Risin' R8 ; Fro!th - 5rodut quality 4/ Com(etiti1e (ressure

4/

5rofit mar'in - ase of

entry

" Customer

loyalty

4, Barriers to

entry

4;

/;erae @5 /;erae @2.5 /;erae 3.5 /;erae 5.5

&he a1era'e of .S3 IS3 CA and S !ere alulated after 'i1in' them (oints bet!een 4; to ;*

&hen the o4ordinates !ere alulated by addin' .S > IS and CA > S* After alulatin' the

o4ordinates for the 1etor on the s(ae matri@3 the 1etor has been dra!n !hih (oints

to!ards the defensi1e strate'ies* Under defensi1e strate'ies ome retrenhment3 di1estiture

and liquidation* Aordin' to the ase3 IBM should 'o for di1estiture*

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CONCLUSION

&he study of IBM and its urrent (osition sho!s that !ith its urrent situation and strate'ies

it !ill be fored into the lane of defensi1e strate'ies* IBM in order to maintain its om(etiti1e

ad1anta'e stri1es on researh > de1elo(ment and di1ersifies its o(erations*

&he study sho!s that IBM has am(le room for im(ro1ement in its Internal as !ell as e@ternal

en1ironment* &he fat that the om(any needs to further stren'then its brand ima'e an be

done throu'h e@(loitin' (otential markets in the lon' run* In addition3 IBM has some loss

makin' de(artments !hih are a burden on the om(any* &he om(any has not yet ome u(

!ith any strate'y to di1estiture suh de(artments* &here is room for im(ro1ement IBM needsto reinstate its line of brands throu'h effeti1e ad1ertisements around the 'lobal market*

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RECOMMENDATIONS

• &he om(any needs in1est more in researh and de1elo(ment in order to 'ain market

leadershi( throu'h differentiation*

• IBM needs to 'et rid of their loss makin' de(artments3 this should be done throu'h

the follo!in'

" 9i1estiture

• .or the om(any?s (rofit makin' de(artments they should use om(etiti1e strate'ies

and o(t for

" 5rodut de1elo(ment, Market (enetration

• IBM should launh android based &ablets to ater the markets ne! demand for touh

sreen &ablets

• Another Cate'ory !hih should be introdued by IBM is the ell (hone market as

they ha1e the I& required for most of the !ork

• IBM should ater the youth by (ro1idin' hi'h end 'amin' 5C?s and Ha(to(s*

• &hey should im(ro1ise on their marketin' de(artment as !ell* &here an be more of

elebrity or branded (ro'rammin' entertainment*

• &hey should mo1e for!ard !ith the (lan of aquirin' intensi1e strate'ies*

• IBM should lay off its em(loyees as they are a burden on the om(any*

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#OR$S CITED

International Business Mahines L ,00:3 iaya Nara(areddy3 Uni1ersity of 9en1er

International Business Mahines L ,00+3 .

athi Salem Muhammad Abdullah3 Uni1ersity of Jordan

Strate'i 5lanG IBM L ,0"03 iri %uizen3 Colle'e of A((lied Sienes

!!!*(rb*or'(df0;outhInAFlobal2orld*(df

htt(G!!!*ibm*omannualre(ort,00+,00+OibmOhi'herO1alue*(df 6,00+ Annual re(ort7

htt(G!!!*ibm*omannualre(ort,00#noteOt*shtml

2* 1 " a g e


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APPENDI"

77789611 IBM Case Study Strategic Management Final Report

Documents

Transcript of 77789611 IBM Case Study Strategic Management Final Report