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Published by: Praewphan Lapchoosanga on Dec 25, 2010
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(case analysis)

. Palmisano Chairman.022 Total debt Total equity ‡ International Business Machines Corp.409 .425 Total assets 109. Armonk. of employ. Current Financial Status: 2010 (1st half) 2009 Revenue $95. .099 22.755 (Figures in millions dollars. President & Chief Exec.) Nos. 399. IBM . Officer.758 Net income $13. in IBM/owned subs.Dedication to every client¶s success. New Orchard Road.Innovation that matters ± for our company and for the world.Trust and personal responsibility in all relationships. New York 26.Employee Values: IBM: Present Day * Samuel J. .

they had merged with Lenovo for strategic purposes. Automotive.000 employees * Important notes: IBM is currently establishing partnership with Chungwa Tel and. Financial Markets. Travel. from gov¶t and private sectors representing every major industries. Insurance ‡ Public: Education. Retail. Life Sciences ‡ Industrial: Aerospace. Electronics ‡ Distribution: Consumer Products. Transportation ‡ Communications: Telecommunications. Healthcare. . Media and Entertainment.IBM: Present Day * The company focuses in capturing wide ranges of market . Energy and Utilities ‡ Small and Medium Business: Mainly companies with less than 1. Major Markets of IBM: ‡ Financial Services: Banking. Chemical and Petroleum. Defense. as we all know. Government.

drive economic and operational improvements.com/watch?v=DTrLWTcDi2k&feature=player_embedde d .IBM: Present Day * ³At IBM.youtube. Green Building Council (USGBC) ± reused 95 percent of the original building's shell and in the process IBM recycled 90 percent of the materials from the original building and ensured 25 percent of newly purchased material came from recycled products ± rainwater collection system which generates nonpotable water to be used in the facility ± used an innovative modular design method called IBM Enterprise Modular Data Center (IBM EMDC) ‡ (Please watch the video at the end of our presentation.S. 22 Sept. our approach is twofold: we are working to make our existing products and processes more efficient for both the environment and for business. 2010 ± awarded the LEED Gold certification by the U.achieved Leadership in Energy and Environmental Design (LEED).´ IBM Research Triangle Park Leadership Data Center ‡ Gold certification for its new data center . while also developing new innovations that can help the world become smarter.) http://www. increase accountability and lessen environmental impact.

representing growth of more than 55 percent. International Data Corporation (IDC).IBM: Present Day * Current world leader in market share in Social Platform with total revenue of $369. 2009 ‡ IT Services: ± ± ± ± ± ± ± ± ± ± Business continuity and resiliency service End user services Integrated communications services Security services IT strategy and architecture services Maintenance and technical support services Middleware services Outsourcing services Server services Site and facilities services .7 million in 2009.

Intel-processor based servers . A product is also referred to anything things. Storage software . Hard drives/microdrives . Storage A-Z. Software for Medium Business . and stems from the verb ³produce´. Servers and systems A-Z ‡ 2. Storage area networks . Bladecenters. Products for medium business ± Hardware for Medium Business. IBM PRODUCTS AND SERVICES ‡ 1. Linux servers. x86 servers for Windows and Linux. Storage ± Disk systems. UNIX servers. Media ‡ 4. Cluster system. Network attached storage. Tape systems . Mainframe servers. Software ± Software Products. System (iSeries). or goods produced. Software b ‡ 3.IBM: Present Day * Product is a "thing produced by labor or effort³ or the "result of an act or a process". Servers & Systems ± AMD Processor-based Servers. Power Systems.

education. Integrated communications services . consultancy. banking. Asset Recovery. transportation. End user services. Middleware services. such as accounting. Customer Relationship Management. Server services. Outsourcing Services. IT strategy and architecture services . medical treatment. Maintenance and technical support services . Strategy and Change. Thought Leadership . Storage and data services ‡ Additional Services ± Application Services. cleaning. Supply Chain Management. Software Services ‡ Business Consulting ± Business Analytic and Optimization. Financial Management. insurance. know how.IBM: Present Day *Services are intangible products that are not goods (tangible products). Site and facilities services . IBM SERVICES: ‡ IT Services Management ± Business continuity and resiliency. Human Capital Management. Security services.

a statistician for the US Bureau of Census formed the Tabulating Machine Company For decades. IBM bought Sterling Commerce Unit from AT&T for about $1. offers infrastructure services.4 billion In 1886. and consulting services in areas ranging from mainframe computers to nanotechnology On May 2010. United States Historically Significant Details: ‡ It is the world's 4th largest technological company and the 2nd most valuable global brand IBM manufactures and sells computer hardware and software. technology and IT consulting corporation headquartered in Armonk. New York. hosting services.Case Overview: * an American multinational computer. the internet began to take-off. IBM focused on server and related equipment ‡ ‡ ‡ ‡ ‡ . IBM got much profits from the hardware of the computer industry: large mainframe computers and then personal computers In Mid-1990s. Herman Hollerith.

follows the ³open architecture´ policy that encourages IBM¶s licensees to develop more innovated applications software for customers ± create customer value of IBM¶s hardware . training one of the world¶s largest and most technically competent sales forces ‡ Service .Case Overview: Production Line: ‡ ‡ Produce hardware for large mainframe computers and personal computers Allocate vast resources to R&D and product development to ensure a steady stream of cutting edge product Marketing Frontline: ‡ Price ± premium price for large organizations with strong financial capacity ‡ Distribution ± through independent retailers ‡ Promotion/ Advertising ± maintained substantial advertising and promotion budgets to keep potential customers informed about it constantly evolving product line and increased the awareness of IBM brand ‡ Selling ± recruiting.

Case Overview: * A problematic IBM upholds in the mid-1990s due to the inconceivable technological trend Changes in Technology: ‡ ‡ ‡ rapid increase in power of desktop¶s PC emergence of the Internet development of internal. lower prices by offering custom-designed systems. direct purchasing over web and user-friendly supports & programs IBM¶s quality differentiation strategy and premium price position became less effective ‡ . organization wide computer networks (intranet) As a result: ‡ demand for large mainframe computers and centralized data processing system declined ± Customer purchase criteria changed Competitors· Actions: ‡ more benefits from other brands.

The ´THENµ of IBM: * Focuses on the Marketing Strategy the company implemented from the day of its establishment towards the mid -1990s. Target Customer:  Organization  Individual consumers Marketing Strategy:  Product-based quality differentiation Strategy .

The ´THENµ of IBM: 4Ps (Integrated Marketing Concept): Products:  Superior product backed up by excellent technical service ± Hardware(Mainframe) ± PC-DOS operation system Price:  Premium Price Place:  Channels   Independent retailer Value-added resellers Promotion:  Sales forces promotion .

Target Customer:  Organization  Brick-and-mortar firm Marketing Strategy:  Service-based quality differentiation Strategy  Focus on executive-level problem solving instead of traditional technology consulting . They learned to recognize their strength & capitalize on it.The ´SOLUTIONµ : * The company considered to reformat their business marketing strategies to cope-up with the fast changing world of technology.

their website Promotion: ‡ Sales forces promotion ‡ Ads were placed in a variety of media directed at managers and entrepreneurs .The ´SOLUTIONµ : 4Ps (Integrated Marketing Concept): Products: ‡ ‡ ‡ ‡ E-business Consulting Software Outsourcing Service. system and storage ‡ Variety of price up to version of product Price: Place: ‡ Channels » Direct sale » Online. Service pacs ‡ Server. ‡ ‡ ‡ Training IT service.

interbrand. Source: http://www.com/en/knowledge/best-global-brands/best-global-brands-2008/best-global-brands2010.The Current Market: * Informative inputs we may want to know about the competitive situation of IBM.aspx .

SWOT Analysis: * IBM has completely transformed its services from a predominately IT outsourcing model to a highvalue approach focusing on labor-based processes. mergers and acquisitions. High efficient fulfilment centre. services and research and development. Strategic outsourcing. building business analytics and optimization capabilities & turning services into reusable assets through a combination of software. Flexible marketing management Creative services Weaknesses: ± ± High costs in the value chain. Possible acquisition issues . Strengths: ± ± ± ± ± ± Advanced business performance management Good organization culture.

SWOT Analysis: Opportunities: ± ± ± Strong and stable economic market context Sophisticated service market High individual consumption power ± ± ± Matured internet market High level of entry barrier to the server market Wireless Applications Threats: ± ± Customers have high experience on the service Customers have low switching costs ± ± ± IBM has high switching costs on the core hardware Intense competition High threat of substitutes .

New IBM Data Center.The Future for IBM: RECOMMENDATIONS: ‡ ‡ add more distribution channels. keep-up high investment in research and development * Interesting Note: With more than 30 years of point-of-sale (POS) market leadership. reaching their customers/target market always watch-out for threats in competition.wmv . IBM and its network of IBM Business Partners provide retailers of all sizes store solutions that can help increase sales and reduce costs.

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