IBM was formed in 1924 and became a leader in computing technology throughout the 20th century. It introduced many innovations including the personal computer in 1981. More recently, IBM has expanded into consulting services and acquired companies to grow. It aims to increase profits and market share, especially in Asia. Potential strategies include increasing marketing in Asia, entering the mobile phone market, and producing video game consoles. The best approach is increasing Asian marketing and entering mobile phones given market potential. Contingency plans address issues that may arise with these strategies.

1. Introduction:
Brief History of IBM

2. In 1886 Herman Hollerith, a statistician for the
US Bureau of Census formed the Tabulating Machine
Company and Thomas J. Watson became its leader in
1915 and made the company slogan “Think”. It
changed its name to International Business
Machines (IBM) in 1924. It was taken by the US
government at the beginning of World War II in
the war effort and given a one percent profit, which it
used to fund war victims and orphans.

3. During the period between 1910 and 1960, it developed
products from punch-card tabulating machines to room-
sized calculators to mainframe computing systems for
large enterprises and changed the nature of
accounting, calculation and basic back-office business
processes. In the 1970s and 80s, IBM product lines
expanded from its traditional
mainframes to mini
computer and personal
computers and applications moved from
backend operations to departmental operation. In
1981, the company introduced the IBM Personal
Computer or PC, allowing the use of computers in
schools, homes and businesses.

4. Components for the computer were sourced from outside
the company. The processor chip came from Intel and the
operating system, called DOS (Disk Operating System), came from
Microsoft.IBM introduced the ThinkPad in 1992, the first in a series
of notebook computers to be manufactured by the company. In
1995, IBM acquired Lotus Development Corporation and Tivoli
Systems. In 1997, IBM demonstrated computing’s potential with
Deep Blue, a 32-nodeIBM RS/6000 SP computer programmed to
play chess on a world class level. During the nineties, with the
Internet and open standards, IBM embraced the
network computing model and coined “e business” to describe
how network computing can transform core businesses and
transactions.

5. In October 2002, IBM acquired PwC Consulting, the global
management consulting and technology services unit of Price
Waterhouse Coopers. IBM sold most of its hard disk drive operations
to Hitachi in December 2002. The sale involved the creation of a joint
venture called Hitachi Global Storage Technologies, which was 70%-
owned by Hitachi. In 2003, IBM Research launched On Demand
Innovation services, which teamed customers with a team of
researchers who specialize in business transformation and technology
consulting. Over one billion will be spent over the next three years and
will be staffed with200 IBM research consultants. Today, IBM is by far
the largest information technology in the world and the eighth largest
company in the world. In 2003, it had revenues of US $89.1 billion, a
net income of 4.32, more than 366,000 employees in 170 countries
with approximately sixty percent of revenues generated outside the
United States.

6. Vision Breakthrough microprocessor architecture
that puts broadband communications right on the
chip.
Mission At IBM, we strive to operate in
the invention, development and manufacture of the
industry's most advanced information technologies,
including computer systems, software, storage
systems and microelectronics.

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. 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. PRODUCTS

10. PRODUCTS

11. S.W.O.T.
Opprtunities:
1. Video game console market revenueis projected to reach $12
billion in2008 and $66 billion in 2012.
2. The IT market in Russia, India,Brazil, and China are expected
togrow 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. STRENGHT:
1. IBM revenues increased 7 percent to69.92$.billion
in 2006.
2. A unique approach to engage their employees in an
online 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 of
its revenues being generated outside the US.
5. IBM concentrated on becoming stronger in high value
added businesses.
6. IBM ranked number 1 hosted service provider in
Western Europe.
7. IBM is supercomputing leader as provider of 35 of
the world's 100most powerful supercomputers.

13. WEAKNESS:
1. Declining in revenues of services and
systems segments in 2006.
2. Decline in revenue
of public, industrial, small and
medium business industries in 2006 by 9.6%.
3. Decline in revenues in Asia Pacific
area by 5.7%.
4. Total assets are gradually decreasing
from 109M to103M in 2006.

14. IV. Alternative Courses of Action
1. Entering the video game console
market by producing video game
console.

15. 2. Entering the mobile phone market.

16. 3. Increasing marketing efforts into Asia
Pacific.

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. 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. VII. Potential Problem
1. 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. 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.