Bilal Ilyas

History
‡ In 1886 Herman Hollerith, a statistician formed the Tabulating Machine Company and Thomas J. Watson became its leader in 1915 and made the company slogan Think . ‡ It changed its name to International Business Machines (IBM) in 1924

it developed products from punch-card tabulating machines to room-sized calculators to mainframe computing systems for large enterprises ‡ In the 1970s and 80s.History ‡ During the period between 1910 and 1960. IBM product lines expanded from its traditional mainframes to minicomputer and personal computers .

. the first in a series of notebook computers to be manufactured by the company ‡ In 1995. IBM acquired Lotus Development Corporation and Tivoli Systems ‡ In October 2002. IBM acquired PWC Consulting and it sold the most of its hardisk to Hitachi.History ‡ IBM introduced the ThinkPad in 1992.

‡ Today.History ‡ In 2003. IBM Research launched On Demand Innovation services ‡ A team who is specialize in business transformation and technology consulting. IBM is by far the largest information technology in the world and the eighth largest company in the world .

VISION ´Breakthrough microprocessor architecture that puts broadband communications right on the chip.µ .

development and manufacture of the industry's most advanced information technologies. including computer systems.µ . storage systems and microelectronics.MISSION ´At IBM. we strive to operate in the invention. software.

Hammad Amjad .

SWOT Analysis .

STRENGTHS ‡ Advanced business performance management ‡ Good organization culture ‡ Strategic outsourcing. mergers and acquisitions ‡ High efficient fulfillment centre ‡ Flexible marketing management ‡ Creative services .

WEAKNESSES ‡ High costs in the value chain ‡ Possible acquisition issues .

‡ High level of entry barrier to the server market. . ‡ Matured internet market.OPPORTUNITIES ‡ Strong and stable economic market context. ‡ Video game console market revenue is projected to reach $66 billion in 2012. ‡ High individual consumption power.

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 ‡ Competitors are strong ‡ Economic fluctuation could crimp consumers spending .

Ali Pervaiz .

MAJOR THREATS Intensive competition Vulnerabilities Exploits and active attacks Viruses and other malware. spam. phishing. and malicious web content ‡ High customer bargaining powers ‡ ‡ ‡ ‡ .

HP 156000.486 employees as compare to Microsoft 71000. ‡ Around 60% of its expenses compromise of selling and administration. EDS 131000. .CORE PROBLEM ‡ Excessive Amount of Hiring ‡ IBM has currently 366.

Arslan Khan .

000 50.39% 1.27 45.000 8.00 Billion 10.57 12.Financial Ratios ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Debt/Equity Ratio Gross Margin Net Profit Margin Total Shares Outstanding Market Capitalization Earnings/Share Price/Earnings Price/Book Price/Cash Return on Equity Return on Assets Debt/Equity Interest Coverage 1.000 .000 13.000 52.76% 14.000 66.000 9.3 Billion 158.

Zubair Safdar .

licenses. . manufactures.COMPETITOR ANALYSIS Microsoft (MS) Microsoft Corporation is a public multinational corporation headquartered in Redmond. and supports a wide range of products and services. Washington and USA that develops.

commonly referred to as HP. is an American multinational information technology corporation ‡ HP is one of the world's largest information technology companies and operates in nearly every country .COMPETITOR ANALYSIS Hewlett-Packard ‡ Hewlett-Packard Company.

and provides technical support for 3 million desktop computers. manages 65.000 servers around the world. ‡ EDS helps businesses process credit card transactions.COMPETITOR ANALYSIS Electronic Data Systems (EDS): ‡ Head office is in Texas and established by Ross perot in 1962. ‡ Electronic Data Systems Corporation (EDS) is a global technological services company that was acquired by Hewlett-Packard (HPQ) .

79B 42.295 19.77M $156.59% 631M 1.86B 1.56B 80.03% -218.382 21.44S .74K 456.93B Industry $353.06B 24.28B 366486 92.156 23.81 Over 170 3 131000 21.32 Over 150 4 1.39B 2.44 Over 100 3 71000 49.IBM Market Capital Employees Revenue Gross Margin Net income EPS P/E Operating in Countries Business Segments EDS $14.55B 6.03K 19.262 16.66% 13.46% 6.33% 9.99 64 2 156000 97.41B 13.28M 36.85B MS $281.11B HP $116.

Muhammad Salman .

‡ Offer low prices to attract more customers .SUGGESTIONS: ‡ Firing of insufficient employees ‡ Give incentives satisfy and motivate current employees and hire more competent employees(think tank) ‡ Do related and unrelated diversification to capture more market share.

( to satisfy customers) ‡ Do corporate social responsibilities to enhance its image among customers .SUGGESTIONS ‡ Do joint ventures to be financially more strong ‡ Collaboration with suppliers ( for innovation) ‡ Offer long years warranties and guaranties.

CONCLUSION IBM has come a long way in its efforts to transform itself in to an innovation driven integrated global company as it seeks to pursue value added businesses and services that will generate high value for its customers and high profits for its share holders. .

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