GROUP-7

YASHIKA AGARWAL
YASHASWINI
TRUPTI KABRA
RAHUL ANAND
PRANAV REDKAR
RISHANK KAMANI
Company profile
International business Machines Corporation (IBM) incorporated in 1880’s.

Known as IBM only in 1924 under president Thomas J Watson.

‘THINK’ was their corporate mantra.

Products include customised hardware, software, consulting, customised software solutions

etc.

Today, largest and most profitable IT company in the world with $103 billion in sales in 170
countries.
Marketing Mix
 Product:
 IBM has a huge portfolio of products and services in its marketing mix befitting the enormous
brand that it is.

These offerings from IBM are classified in the classes of distributed computing, security,
psychological registering, business, portable, information and examination, It Framework and
Internet of Things.

 IBM’s inventions are robotized teller machine (ATM), floppy plate, hard circle drive, stripe cards,
social databases, SQL programming dialect, UPC standardized tag and many others. IBM offers
a unique service called Cloud Data Encryption Services (ICDES), securing client data through
advanced technologies.

IBM has its business widely distributed in computing and versatile innovations meeting through
Interconnect each year.
Price:
IBM provides its products in the market at the affordable rates. As this is the well developed
technology company, so its products also have the high value.

The customers can get these products from its franchises or download its software to use them
for their business and other educational activities. The company will take step to cut down the
prices of the products and services of the company.
Place:
The products and the services are provided to the clients through online and they can download
software and the hardware components and devices through the physical stores.

They can compare the quality of the products with other companies and make decision, which is
the best one for them.
 Promotion:
The products and services of the brand are massively advertised in the media and through
some advertisements in the newspapers and magazines.

The clients can get information about their products and they can use them for their benefits.
The products and services of the company are recognized at the world level and they are
competent to be used in any industry or business sector.

 The social media is playing vibrant role in spreading the news about these products and these
are getting popular among the people.
Segmentation
 IBM divides its transactions in three groups in which the first kind of buyer aims to get more
devices of the same kind and in the second kind of buyer, they target the technology expert so
that they can buy their products and use in their important projects to get the ultimate results.

 The third type of the transaction is carried out with the complex business group, in which expert
and non-expert buyers are included.
Targeting
IBM has prepared its products and offered its services to its clients in different sectors like
education, business, corporate sector and government departments.

The customers need the latest technology in preparing their documents or carry out their
working, so they look for latest model of IT technology, which can give convenience to them in
different activities.

IBM understands its targets markets and its requirements and adopts different strategies to
meet their requirements
Positioning
IBM is working on the business and customer strategy to manage the customers and get the
sustainable business through different customer strategies, setting new directions for
transformation and customer focused business models.

 The company works with the clients collaboratively and provides the latest solutions of their
problems in IT industry.

It also provides business analysis, expert planning, project planning, vision development, and
link the strategy to execute it in different ways.
PESTEL ANALYSIS
 • Close ties and influence with Trump administration.
• Trump’s trade war with china may hurt US technology giants.
Political

• Overhauling of H1B work visa program by Trump administration.

• Strong economy in emerging markets.
Economical

• Increase in adoption of e-commerce by consumers.

Social
 • Technology integration initiatives across industries.
• Increasing adoption of Cloud services.
Technological

• Increasingly stringent regulations for e waste.

Legal

• Leveraging technology for environmental protection

Environmenta • Internal organizational initiatives on environmental sustainability.
l
Environmental Analysis
IBM has an opportunity to improve its sustainability by utilizing more renewable energy and by
recycling its byproducts and production waste.
These efforts also address the opportunity to satisfy the external factor of the rising interest for
business sustainability programs. These actions can contribute to the effectiveness and
success of the programs and initiatives in IBM’s corporate social responsibility strategy.
For example, increasing renewable energy utilization can satisfy the stakeholder group of
communities concerned about the effects of the information technology industry on the
environment.
 As a result, this element of the PESTEL/PESTLE analysis of IBM points to opportunities to
address the ecological concerns in the remote or macro-environment of the information
technology industry.
PORTERS FIVE FORCES MODEL
 Rivalry Among Existing Bargaining power of
Threat of new entrants
Competitors suppliers
(low)
(High) (Low)
• The high capital investment, • There are many computer • IBM’s business employs a
high budget foe research and software manufactures in wide variety of components,
development, and high today global market. Each services and raw material
technology of production can manufacture tries to from a substantial number of
be seen as factors that prevent differentiate its products by suppliers around the world.
new competitors to enter into creating new programmes
computer technology that make a computer more
industry. powerful.
 Bargaining power of buyers Threat of Substitutes
(High) (low)

• As IBM operates business in B2B • Software is the main component of

market, most organisations always the computer which used to enable a
buy in large amount per one time. computer to perform specific tasks.
Therefore , customers have power to Nowadays, there is no product to
negotiate with the company. replace or substitute computer
software.
 SWOT ANALYSIS
Strengths Weakness

1. Expensive service and software solutions.

1. Strong global presence in leading technology 2. Focus mainly on large enterprises.
products and solutions. 3. Sluggish growth in core business units.
2. Brand Reputation
3. Diversified business.
4. Strong competency in acquisitions
5. Integration of products and services

Opportunities Threats
1. Growth opportunities in government business 1. Increasing competition in cloud computing market.
segment. 2. Slow growth of world economy
2. Investments in strategic imperatives to drive 3. Trade war and economic policies.
business expansion.
3. Increasing demand of cloud based services.
Product Life Cycle
1) Introduction:
- Launched 1st product in 1880’s. Quality and Innovation were its key focus points. Created a market
space for themselves.

2) Growth:
- Customised software and hardware. Mass production with tie up with various firms and scaling
operations. Expanding into various countries. Money on R&D.

3) Maturity:
- More options with customers due to competition in the market. Ups and downs with revenues
falling due to outsourcing.

4) Decline:
- Global Recession and increasing customer acquisition costs, focus on niche segment and improve
existing products.