The main strategy of IBM case study

IBM introduced cost effective technologies like instead of pure silicon chip, they introduced a blend to silicon and germanium I . BMW NAS On Demand Innovation services where different teams offer business transformation and technology consultation services. Today, IBM is the largest information technology company and the eight largest companies in the world with workings in over 170 countries.

More than 60% revenue of the company is generated from outside of US. Case Questions: 1 . Us the five key elements of strategic decisions to evaluate Vim’s corporate strategy. Nat conclusions do you draw for these and added value? . What are the strengths and weaknesses of MM? And what are the opportunities and threats that it faces from the competitive environment surrounding the company? 3. What was the strategic significance of Vim’s decision to obtain supplies of computer chips and software from other manufactures rather then make them itself? 4.

How big a part did the change in computer technology play in Vim’s problems? Could this have been predicted by MM? What is the significance of your answer for corporate strategy? 5. What was the significance of Vim’s suppliers spending marketing funds to brand their products?

What strategic significance does this have for the late asses in computer markets? 5. What strategies would you have adopted in 1993 to turn around the situation at )5586 A couple of clarification questions for you: is this based on a printed case study (Harvard Business School or other)? * you case question #1 is it: “use the 5 key elements of strategic decisions”? * can I assume that you’re referring to Michael Porter’s 5 forces in question #1? Is #5 really about Vim’s competitors and branding? Or is it referring to Microsoft and Intel during the asses, in particular?

Kiddo also better let researchers know if there’s a deadline because this is really a pretty complex question and I know IBM pretty intimately from the 1980-2000 period from business experience.

Zest regards, Omnivorous-GA 2). Strategic analysis: Vision statement At MM, we strive to lead in the invention, development and manufacture of the Industry’s most advanced information technologies, including computer systems, software, storage systems and microelectronics. We translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide.

Mission statement IBM main activity is to find solutions to its wide range of clients using advanced information technology. Its clients are individual users, specialized businesses, and institutions such as government, science, defense, spatial and educational organizations.

To meet and respond to its customers needs, IBM creates, develops and manufactures many of the world’s most advanced technologies, ranging from imputer systems and software to networking systems, storage devices and microelectronics. Lunch, 1997)Through this mission statement IBM is striving to dynamically galvanism their props in various field and trying to maintain a stabilize balance between all above aspect like clients, government, educational organization etc. The main strategy of IBM is to delivers their high value added services (or steward)to customers through their server product. And it can be divided into 4 pieces scofflaws:l) Reallocating resources to enhance their server product business and reduce operation costs and optimize the efficiency. To pursue an innovation agenda with its clients, partners and in other relationships, and to continue refining its portfolio to achieve higher value.

3) Acquiring businesses that contribute strategically to its portfolios) To maintain its leadership of this rapidly changing business by focusing on high-value innovation-based solutions and services while consistently generating high returns on invested capital for its shareholders. The strategy making of IBM should consider whether the new strategy can satisfy these key stakeholders who have high power.

For example, the government element in the keep satisfied”, they have high power (legislation power) but low interest. Another example is the shareholders in “key players”, who have high interest in IBM and high power on affecting the strategic decision. To sum up, if the strategic decisions threaten the benefits of the key stakeholders, this strategy might be difficult to be achieved.

RECOMMENDATIONS rhea company needs invest more in research and development in order to gain market leadership through differentiation. IBM needs to get rid of their loss making departments; this should be done through the following 1. Divestiture

For the company’s profit making departments they should use competitive strategies and opt for 1 . Product development 2. Market penetration IBM should launch android based Tablets to cater the markets new demand for touchstones Tablets Another Category which should be introduced by IBM is the cell phone market as they have the IT required for most of the work IBM should cater the youth by providing high end gaming PC’s and Laptops. Rhea should improvise on their marketing department as well.

There can be more of celebrity or branded programming entertainment. They should move forward with the plan of acquiring intensive strategies.

IBM should I ay tot its employees as they are a burden on the company. CONCLUSION rhea study of IBM and its current position shows that with its current situation and strategies it will be forced into the lane of defensive strategies. IBM in order to maintain its competitive advantage strives on research & development and diversifies TTS operations. The study shows that IBM has ample room for improvement in its Internal as well as external environment.

The fact that the company needs to further strengthen its brand image can be done through exploiting potential markets in the long run.

In addition, IBM has some lassoing departments which are a burden on the company. The company has not yet come up with any strategy to divestiture such departments. There is room for improvement IBM needs to reinstate its line of brands through effective advertisements around the global market. Information technologies, including computer systems, software storage systems and Threat of New Entrants It is relatively low as this field requires heavy investment in research and innovation. Bargaining Power of Customers There are a lot of similar products available which makes the power of bargaining higher.