CONTENT1. History2. Previous Strategy3. New Corporate level Strategy4. New Business level Strategy5. Functional Strategy.
HISTORY OF IBMInternational Business Machines abbreviated IBM andnicknamed as “ BIG BLUE ” is a multinational computertechnology and IT consulting corporation headquartered inArmonk, New York ,United States.IBM manufactures and sells computer hardware andsoftware and also offers infrastructure services andconsulting services in the areas ranging from mainframe tonanotechnology .Samuel J Palmisano is the Chairman andCEO of IBM.
OBJECTIVES THEY WERE FOCUSSING ? 1. They were mainly focussing on the hardware side of the computer industry that is maily on the mainframe or Personal PC’s. 2. But when the Internet Began to take off in the mid 1990’s they started focussing on the server and related equivalent’s.
WHERE THEY WERE FOCUSSINGBasically they were targeting customers for hardware oflarge organization because :They require greater data processing capacity andHave financial resources to afford it
QUALITY DIFFERENTIATION STARTEGY IBM followed “ quality differentiation strategy ” as their competitive advantage by offering superior products backed by excellent technical service and selling them at premium price.
RECOURSE DEPLOYMENTTo fulfill this strategy and for it’s implementation firm allocated vast resources toR&D.
OPEN ARCHITECTURE POLICYIBM also followed open architecture policy. According to this policy the firmlicensed it’s PC-DOS to other manufacturers , which helped to expand thenumber of PC-DOS users.
ADVANTAGES1. Increase in number of PC-DOS users.2. Helping to provide incentives for IBM license to develop more innovative application software3. Improve the value of hardware among their customers.
MARKETING STRATEGY FOLLOWED BY IBMIBM maintained budgets for advertising and promotions to keep theircustomers up to date for new product line.
CORPORATE STRATEGYCORPORATE GOALS AND STARTEGY :The new corporate level strategy of IBM was to become oneof the leading e-business service providers and to develop e-commerce engineering , software and consulting services.
STEPS TAKEN FOR THE DEVELOPEMNT OF THE STRATEGY1. Following are the steps that were taken at a corporate level :2. De-emphasizing the manufacture of high tech hardware.3. Increase emphasize on providing customers e-business engineering ,design and service.4. Converting old databases to new online system.5. Improving efficiency by introducing web technology into their internal business.6. Developing companies web site.7. They focussed on services and software packages tailoring the needs of specific industries. i.e, banks .
BUSINESS STRATEGYPREVIOUS BUSINESS UNIT OBJECTIVE :Previous firm differentiated itself from the competitors on thebasis of superior quality and charging premium price for it’squality.
CONTD….NEW BUSINESS UNIT OBJECTIVE :1. But in new business strategy this competitive superiority depends on knowledge , experience and expertise for it’s consultants. For this they :2. Re organize and re-allocated their internal resources.3. Half of the company budget is allocated to solve business problems rather than improving technical performance of the hardware.
STRENGTH OF THE NEW BUSINESS STRATEGY1. Knowledge and expertise of it’s personnel.2. Ability to develop beneficial relationship with customers.3. Training of their sales persons by utilizing sufficient resources.4. Able to gain market share against competitors like ORACLE,SUN, in nearly every service and software package.
Functional Strategy at IBMThere are various functional areas at IBMsuch as:-Customer Relationship ManagementFinancial ManagementHuman Capital ManagementSupply Chain Management
Customer Relationship Management IBM consultants truly make an impact, helping clients to integrate their sales, marketing and customer service functions, and improve sales performance across all channels. They partner with companies to improve customer loyalty and satisfaction, while reducing the costs associated with marketing, sales and service.
Financial ManagementIBM work with clients to design and implement finance andaccounting business transformation, process improvement andtechnology solutions across the enterprise.IBM help companies address the changing role of finance, bettermanage capital and profits, increase visibility of financialinformation, and maximise benefits of technology.
Human Capital ManagementHuman Capital Management (HCM) practice helps the clientscreate a responsive workplace and best-in-class HR functionwhile aligning performance with strategic goals.IBM deliver strategy, operations, process, technology andoutsourcing to help clients get the best from and for theirpeople.
Supply Chain ManagementSCM people work in cross-functional teams to analyse everyphase of the supply chain, from design to source to plan to buildto distribute, in order to maximise performance and drivecompetitiveness for our clients.