IBM Watson strives to be the leader in advancing information technologies to assist companies in keeping up with big data. Its core values include client success, innovation leadership, and trust. Its strategic direction is to pioneer future technologies at the forefront. It aims to differentiate itself through being first to market with new technologies. Its target markets include older generations through references to Jeopardy, younger generations through social media, and large companies through demonstrations of its customer service capabilities.

2. IBM WATSON VISION
IMB Watson strives to be the
leader in advancing information
technologies to assist other
companies expand and keep up
with the ever changing world of
big data.

3. CORE VALUES
IBM is dedicated to the success
of every client, being a leader in
innovation not only for the
company, but for the world, and
to possess trust and personal
responsibility in every
relationship.

4. BUSINESS DEFINITION
To strive for advancements in
technology to better meet the
criteria of the consumer by
providing excellent customer
service

5. STRATEGIC DIRECTION
To be at the forefront of
technological advancements
and pioneer the future of
information technologies.

6. STRATEGIC INFRASTRUCTURE
IBM Watson: Leading in
self service technology
and helping clients, and
can reduce customer
turnover.
“Machines will have to be good at
storytelling”

7. DOMINATE STRATEGY
IBM Watson strives to be different from all
other systems. They choose to differentiate
themselves by being the forefront of
technology and change the entire
technology race.
Low Cost:
In the long run technology will save cost of employee salaries.
Customer Intimacy:
Overall goal is customer service and effective customer
service.

8. IMPACT OF E-COMMERCE AND SOCIAL MEDIA
IBM Watson has a social media and online
presence. They connect to their potential
consumers by taking advantage Facebook,
Twitter and other social media sites. IBM also
has a very user friendly website.
Competitive Advantages:
A known name to the public because of Watson’s appearance on Jeopardy.
Has dedicated followers on multiple social media sites.
Cloud Computing:
Lower labor needs and energy consumption because of mass storage
capabilities.
Information readily available to companies in the cloud.

9. FORCES DRIVING INDUSTRY COMPETITION
Rivalry Among Existing Firms:
Ingram Micro Inc., Tech Data Corp, and HP enterprise services are three examples of firms that
have a similar strategic direction as IBM Watson, which makes them rivals/ competitors of each
other.
Potential Entrants:
Firms of other products that attempt to gain access to the same target market and edge out the
current foothold that IBM Watson possesses. Some examples of these firms are Google, Bing,
Apple, Oracle, and other small groups.
Suppliers:
IBM relies on supplies from companies that provide semiconductors, mainframe computers,
mass storage devices, microprocessors, memory ICs, logic, connectors and other resources
needed to make Watson successful.
Intermediaries & Buyers;
Healthcare companies, help centers, schools, and other big businesses are examples of Watson
consumers.
Substitutes:
SIRI, Google Voice, and other voice-based, consumer interfaced products are all possible
alternatives to Watson.

10. TARGET MARKET SEGMENTATION
Segment 1: Older Generation
Advertisement Example:
Watson vs. Jennings
and
Watson shows off his artificial intelligence
defeats the all time great.
~Jeopardy is seen to this generation as an authority on
knowledge and an important contributor to their
information base.

11. TARGET MARKET SEGMENTATION
Segment 2: Younger Generation
Advertisement Example:
Watson vs. SIRI
better meet
Watson uses his compatibility with the consumer to
the needs of college students.
~Putting this advertisement on YouTube is a great way to reach this
audience as it is a common tool for “research” among this segment.

12. TARGET MARKET SEGMENTATION
Segment 3: Big Information Companies
Advertisement Example:
Watson as a help desk
the
customer
Watson will be showcased in a commercial, much like
Discover Commercials, that demonstrates it’s vast
service capabilities.
~Watson helps thousands of customers at the same time in an efficient and
and timely manner to satisfy all customers.

13. MARKETING VARIABLES
IBM uses the following variables to segment their markets:
•
Loyalty
•
Customer Satisfaction
•
Diversity

14. MARKETING STRATEGY
Differentiated

15. POSITIONING MAP
Target Market Segment: College Students
Competing Brands:
SIRI, Google Voice, Internet, and voice calling (customer representative)
Attributes or Characteristics Used by Buyers to Understand Brands
Peer influence, word of mouth, opinion leaders, reviews and knowledge
of product

16. POSITIONING MAP
Maybe draw one and take a picture of it because I am not sure at all how to
put that map on this slide!!!!
SIRI
Google Voice
Person based Customer
Service
WATSON
Internet