Case study IBM

1. MARKET EVOLUTION

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WHAT IS MARKET
EVOLUTION?
• CHANGE IN NEEDS OF CONSUMERS
• CHANGE IN COMPETITORS
• CHANGE IN TECHNOLOGY
• CHANGE IN CHANNELS

3. KEY TO
SUCCESS-
CHANGE
PRODUCT AND
BRAND
POSITIONING
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4. IN 1993,IBM POSTED US$8 BILLION
LOSS-BIGGEST IN AMERICAN
CORPORATE HISTORY
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5. • ORIGINATED IN 1911
• 12 RESEARCH
LABORATORIES
WORLDWIDE
• RANKED 31st
LARGEST I
N TERMS OF REVENUE
BY FROBES FOR 2011
• RANKED 2ND
IN TERMS
OF LARGEST U.S FIRMS
IN TERMS OF NUMBER
OF EMPLOYEES IN 201
BY FORTUNE
• NET PROFIT EXPANDED
FROM 9% IN 2004 TO
16.5% IN 2013
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6. HOW THIS TURNAROUND
HAPPENED?
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7. STEPS TAKEN TO PUT THE
JOURNEY ON RIGHT TRACK
• PUTTING EFFORTS TO PUT BUSINESS
GENUINELY GLOBAL
• FULL TRANSFORMATION OF
PORTFOLIOS
• EMPHASIS ON BEING THE MARKET
LEADER NOT A MERE SURVIVOR
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8. IBM TODAY….
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9. COMPLACENCY IS
BUSINESS KILLER
IBM REINVENTED ITSELF AND
FOUND ITS WAY BACK.IN TOUGH
TIMES GOAL SHOULD BE TO
SUCCEED NOT MERELY SURVIVE.

10. EXAMPLE ….
• CEO OF IBM DURING
GREAT DEPRESSIN OF
1930s WAS THOMAS
WATSON JR.
• HE CONTINUED TO
INVEST IN
PEOPLE,MANUFACTURI
NG, AND
TECHNOLOGICAL
ADVANCEMENT
DESPITE DIFFICULT
ECONOMIC TIMES
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11. AS A RSULT…..
THIS BOLD MOVE OF IBM PAID
OFF AND IT OUTPERFORMED
DURING THAT TOUGH PERIOD

12. IBM SHOWS THE WAY TO
SUCCESS DURING TURBULENCE
PERIOD
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13. INVESTMENT IN ECONOMIC
DOWNTURN
• IT’S AN OPPORUNITY TO EXPLORE THE
UPSIDE OF INCREASING INVESTMENT
• INCREASED INVESTMENT CAN RESULT
IN INCREASED REVENUES
• INCREASED INVESTMENT CAN RSULT
IN INCREASED MARKET SHARE BY
TARGETING WEAKENED COMPETITORS
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14. VISION TO SUSTAIN,GORW AND
LEAD:PRODUCT LIFE CYCLE
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15. PRODUCT HAS DIFFERENT
LIFE CYCLE STAGES AND
REQUIRES DIFFERENT
MARKETING,FINANCIAL,MAN
UFACTURING AND HUMAN
RSOURCESIN EACH LIFE-
CYCLE STAGE
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16. LACK OF THE
VISION CAUSED IBM’S
DOWNFALL IN 1990s
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17. IBM’s FAILURE IN 1990s
• IBM FAILED TO DELIVER WHAT
PUBLIC WANTED.
• IT’S MANAGEMENT FAILED TO
MAKE SIGNIFICANT COST
REDUCTIONS,BUILD A SOLID
PRODUCT LINE
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18. REVIVAL OF IBM
• APART FROM FIXING PREVIOUS
PROBLEMS INTERNET EXPLODED
• IBM SHIFTED FOCUS ON
PROVIDING INTEGRATED
SOLUTIONS FOR CONSUMERS
• LAUNCH OF DEEP BLUE ALSO
RESTORED BRAND IMAGE
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19. IBM HAS EXPANDED INTO
SERVICE SECTOR WITH DATA
ANALYSIS,CLOUD
COMPUTING COGNITIV E
COMPUTING
IT WILL HAVE SUCCESS IN
NEW VENTURES BECAUSE
NOT ONLY IT RESPONDED
TO EVOLVING MARKET
NEEDS,SAW THE ADVENT
OF TECHNOLGY AND
SCRAPPING THE
DECLINING PRODUCT AND
DIVERTING THE
RESOURCE TO NEW VISIN
IBM SMARTER PLANET
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20. SUMMARY
• MARKET EVOLUTION
• IBM
• COMPLACENCY IS BUSINESS
KILLER
• INVESTMENT IN ECONOMIC
DOWNTURN
• PRODUCT LIFE CYCLE
• REVIVAL OF IBM
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21. DICLAIMER
Created By ANKIT RAJ,JADAVPUR
UNIVERSITY KOLKATA during
marketing management internship
under Prof. SAMEER MATHUR ,IIM
LUCKNOW
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