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International Business Machine
Case StudyNusaibah Roslan
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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
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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
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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
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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
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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
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Who are IBM’s biggest competitors today, and what risks do they face with their
current strategy?
QUESTION 2
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IBM’S COMPETITORSIBMs biggest competitors are tech and consulting firms that are related to hardware and software.
Current competitors:• Hp• Accenture
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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
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Thank you