2. IBM TIMELINE
1910 1950 1993 2002
Focus on large
scale tabulating
solutions for
customers
First slogan
“THINK”
Own computer
product line
70% market share
1980-outsource
components to
Microsoft and
Intel
1991-1993: net
losses $16 billions
Thomas
Watson Sr
Sold off low-value
commodities
Acquire 100 firms
Focus on high
tech problem
Spend $50 billions
in R&D
-30% for long
term research
Samuel
Palmisano
Focus on high
margin business
Introduce
ThinkPad
Rebuild brand
image
Louis Gerstner
Thomas
Watson Jr
3. IBM BUSINESS FOCUS
1960 Mainframe
Transformed Industry
Perceived as monopoly
1990 Reorganization
Organization culture change
Downsizing
2000 IT Solution
IT solution and customization
Client focused
Growing new business
1980 PCs
Market leader IBM PC
Product expansion
Bureaucratic control
4.
5. Few companies have had a such a long history of
ups and downs as IBM. What were some of the
keys to its recent success? Can its plans to solve
some of the world’s most challenging problems
succeed? Why or why not?
QUESTION 1
6. KEY SUCCESS FACTORS
• Well-known brand name
• Global distribution capabilities
• Proven ability to change organization when
technology changes
• Has the capital and man power to survive the
bad economy
7. Yes, I believe IBM plans to solve some of the
world’s most challenging problems can be succeed
because:
• hiring scientist, engineer, consultant, and sale
professional
• Invest $50 billions in R&D and 30% of R&D
budget for long term research
8. Who are IBM’s biggest competitors today,
and what risks do they face with their
current strategy?
QUESTION 2
9. IBM’S COMPETITORS
IBMs biggest competitors are tech and consulting
firms that are related to hardware and software.
Current competitors:
• Hp
• Accenture
10.
11. Risk with the current strategy
As for risk with their current strategy, their targets are
huge problems like pollution and congestion.
• Low successful rate
• R&D may become obsolete by the time it compete
• May not able to solve problem
• Other firms might be able to come up with an answer
that can solve a major problem before IBM
The key to their recent success is focusing on big problems that might affect business and consumers. Yes, I believe that IBM is able to solve some of the worlds problem, such as pollution. By hiring scientist, engineer, consultant, and sale professional, they can help solve big problem and make peoples life easier and healthier. They have been putting 30% of their annual budget into R&D we can expect them to come up with something that will fix some of the problem we are facing. By researching new ways to fix big problem, it allow
IBMs biggest competitors are tech and consulting firms that are related to hardware and software. These other firms might be able to come up with an answer that can solve a major problem before IBM. These firms might have a change to climb up the market ladder by attempting to fix major issue faster than IBM
