ibm case study

International Business Machine

Case StudyNusaibah Roslan

IBM TIMELINE1910 1950 1993 2002

Focus on large scale tabulating solutions for customers

First slogan “THINK”

Own computer product line

70% market share

1980-outsource components to Microsoft and Intel

1991-1993: net losses $16 billions

Thomas Watson Sr

Sold off low-value commodities

Acquire 100 firms

Focus on high tech problem

Spend $50 billions in R&D-30% for long term research

Samuel Palmisano

Focus on high margin business

Introduce ThinkPad

Rebuild brand image

Louis Gerstner

Thomas Watson Jr

IBM BUSINESS FOCUS1960 Mainframe

Transformed IndustryPerceived as monopoly

1990 Reorganization

Organization culture changeDownsizing

2000 IT Solution

IT solution and customizationClient focused

Growing new business

1980 PCs

Market leader IBM PCProduct expansion

Bureaucratic control

Few companies have had a such a long history of ups and downs as IBM. What were some of the keys to its recent success? Can its plans to solve some of the world’s most challenging problems

succeed? Why or why not?

QUESTION 1

KEY SUCCESS FACTORS• Well-known brand name• Global distribution capabilities• Proven ability to change

organization when technology changes

• Has the capital and man power to survive the bad economy

Yes, I believe IBM plans to solve some of the world’s most challenging problems can be succeed because:

• hiring scientist, engineer, consultant, and sale professional

• Invest $50 billions in R&D and 30% of R&D budget for long term research

Who are IBM’s biggest competitors today, and what risks do they face with their

current strategy?

QUESTION 2

IBM’S COMPETITORSIBMs biggest competitors are tech and consulting firms that are related to hardware and software.

Current competitors:• Hp• Accenture

Risk with the current strategyAs for risk with their current strategy, their targets are huge problems like pollution and congestion.• Low successful rate• R&D may become obsolete by the time it

compete• May not able to solve problem• Other firms might be able to come up with

an answer that can solve a major problem before IBM

Thank you