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IBM case st

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  1. 1. Introduction: Brief History of IBM
  2. 2. In 1886 Herman Hollerith, a statistician for theUS Bureau of Census formed the Tabulating MachineCompany and Thomas J. Watson became its leader in1915 and made the company slogan “Think”. Itchanged its name to International BusinessMachines (IBM) in 1924. It was taken by the USgovernment at the beginning of World War II inthe war effort and given a one percent profit, which itused to fund war victims and orphans.
  3. 3. During the period between 1910 and 1960, it developedproducts from punch-card tabulating machines to room-sized calculators to mainframe computing systems forlarge enterprises and changed the nature ofaccounting, calculation and basic back-office businessprocesses. In the 1970s and 80s, IBM product linesexpanded from its traditional mainframes to mini computer and personal computers and applications moved frombackend operations to departmental operation. In1981, the company introduced the IBM PersonalComputer or PC, allowing the use of computers inschools, homes and businesses.
  4. 4. Components for the computer were sourced from outsidethe company. The processor chip came from Intel and theoperating system, called DOS (Disk Operating System), came fromMicrosoft.IBM introduced the ThinkPad in 1992, the first in a seriesof notebook computers to be manufactured by the company. In1995, IBM acquired Lotus Development Corporation and TivoliSystems. In 1997, IBM demonstrated computing’s potential withDeep Blue, a 32-nodeIBM RS/6000 SP computer programmed toplay chess on a world class level. During the nineties, with theInternet and open standards, IBM embraced thenetwork computing model and coined “e business” to describehow network computing can transform core businesses andtransactions.
  5. 5. In October 2002, IBM acquired PwC Consulting, the globalmanagement consulting and technology services unit of PriceWaterhouse Coopers. IBM sold most of its hard disk drive operationsto Hitachi in December 2002. The sale involved the creation of a jointventure called Hitachi Global Storage Technologies, which was 70%-owned by Hitachi. In 2003, IBM Research launched On DemandInnovation services, which teamed customers with a team ofresearchers who specialize in business transformation and technologyconsulting. Over one billion will be spent over the next three years andwill be staffed with200 IBM research consultants. Today, IBM is by farthe largest information technology in the world and the eighth largestcompany in the world. In 2003, it had revenues of US $89.1 billion, anet income of 4.32, more than 366,000 employees in 170 countrieswith approximately sixty percent of revenues generated outside theUnited States.
  6. 6. Vision Breakthrough microprocessor architecturethat puts broadband communications right on thechip.Mission At IBM, we strive to operate inthe invention, development and manufacture of theindustrys most advanced information technologies,including computer systems, software, storagesystems and microelectronics.
  7. 7. Corporate Social Responsibility• Organizations today are embracing a more sustainable approach to business – one that takes into account the environmental and societal impact of their activities. By factoring this accountability into their strategy, they implement new ways to source, manufacture, and distribute goods in a more sustainable manner, often while simultaneously lowering costs. And, based on more transparent and proactive engagement with employees, consumers and the communities where they operate, organizations are becoming better equipped to create products and services for a smarter planet.
  8. 8. Values We translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide.STATEMENT OF THE OBJECTIVE To be able to find other way to increase profit especially in Asia.CENTRAL PROBLEM How to be able to increase their market share and profit.
  9. 9. PRODUCTS
  10. 10. PRODUCTS
  11. 11. S.W.O.T.Opprtunities: 1. Video game console market revenueis projected to reach $12billion in2008 and $66 billion in 2012. 2. The IT market in Russia, India,Brazil, and China are expectedtogrow twice as fast as in the rest of the world. 3. Mobile phone markets are expectedto grow by 9% in 2008*. 4. Handheld computers markets areexpected to grow by 32%in 2008.THREATS: 1. Competitors are strong. 2. Economic fluctuation could crimp consumers’ spending. 3. Small & Medium business demands fail to accelerate.
  12. 12. STRENGHT: 1. IBM revenues increased 7 percent to69.92$.billionin 2006. 2. A unique approach to engage their employees in anonline intranet using its Jam technology. 3.Strong strategic planning to be an innovation-centric globally integrated corporation. 4.IBM operates in 170 countries with about 60 percent ofits revenues being generated outside the US. 5. IBM concentrated on becoming stronger in high valueadded businesses. 6. IBM ranked number 1 hosted service provider inWestern Europe. 7. IBM is supercomputing leader as provider of 35 ofthe worlds 100most powerful supercomputers.
  13. 13. WEAKNESS: 1. Declining in revenues of services andsystems segments in 2006. 2. Decline in revenueof public, industrial, small andmedium business industries in 2006 by 9.6%. 3. Decline in revenues in Asia Pacificarea by 5.7%. 4. Total assets are gradually decreasingfrom 109M to103M in 2006.
  14. 14. IV. Alternative Courses of Action1. Entering the video game consolemarket by producing video gameconsole.
  15. 15. 2. Entering the mobile phone market.
  16. 16. 3. Increasing marketing efforts into Asia Pacific.
  17. 17. V. Strategy Formulation I therefore conclude that the best solution to the problem is by increasing marketing effort on Asia, wherein they can make a marketing strategy that will help them conquer the Asian market and also by entering the mobile phone market since they have the potential to create or innovate a very powerful or useful device for their customers.
  18. 18. VI. Plan of Action 1. Making use of local celebrities on Asia to get the attention of possible target markets. 2. Finding Tie-up or X-deals to other related establishments on Asia that will help them promote their products. 3. Creating a new Operating system that will make their phone far different to other phones.
  19. 19. VII. Potential Problem1. What if the artist is not effective?2. What if this establishments wasn’t able to promote your product consistently and accurately?3. What if the new Operating system did not meet the target markets expectations?
  20. 20. VIII. Contingency Plan 1. They can also use other personalities that most of the Asian people believe in, like Politicians and popular people on their country. 2. They can hire people from that country to be trained about their products to be able to promote it consistently and accurately. 3. They should make an update for their operating system through the feedback of their customers with a certain products. And they can also use a free Operating System that is stable and has a good impressions or feedback today.