IBM case study Essay examples
International Business Machines, abbreviated IBM and nicknamed "Big Blue", is a multinational computer technology and IT consulting corporation. IBM manufactures and sells computer hardware and software and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology.
IBM current businesses consist of 5 major divisions: Global Technology Services segment; a Global Business Services segment; a Software segment; Systems and Technology segment; and a Global …show more content…
Who are IBM’s biggest competitors today, and what risks do they face with their current strategy?
IBM's main competitors are Hewlett-Packard Company (HPQ) and Dell (DELL), each of these companies has a different focus area. Dell makes most of its money on PC and server hardware, while Hewlett-Packard is more diversified as the leader in PCs and Imaging & Printing as well as offering IT services. Since IBM relies heavily on its Software and Services segment, it mainly competes with Hewlett-Packard in the servers and IT services markets and with Dell in the servers and software markets. In addition to HP and Dell, IBM also competes with firms such as Accenture (ACN), Amazon (AMZN), Apple (AAPL), EMC (EMC), and Microsoft Corporation (MSFT).
During IBM’s profitability decline in the 1990s, the company found some strategy issues as below, bad decisions in terms of industry focus too much reliance on brand name poor decisions dealing with outsourcing technology a bad focus on market position, and high costs
IBM considers solutions its primary focus and product on the basis of Michael Porter’s business strategy model.
Threat of Entrants: Low
Very few companies can enter into the solutions business for the following reasons: high brand recognition of IBM (decreases threat)
One-stop shopping for IBM products (decreases threat) diverse divisions within IBM