Реферат: Ibm Company Essay Research Paper I Current
3. The company has to look for a new marketing strategy to enter its products at the right place and time and better meet its customers? needs. Use heavy and direct marketing.
4. One important way of reducing costs and be better prepared for the future is to make strategic alliances, thus, building sustainable competitive advantages.
5. The internal culture should be changed. Give more importance to team work.
IV. Strategic Recommendations
1. Even if it is currently one of the leaders in the computer industry, IBM should prepare itself for the future especially for the high competitiveness that engulfs the industry. For instance, very known competitors, such as Compaq, are increasingly doing well and can easily surpass IBM if it defaults on meeting customers? demands and being innovative by having a truly sophisticated R&D. In fact, IBM should try to provide integrated system solutions to customers not only to ease the way of using them but also to ease the life of its customers.
2. One of IBM?s problems is the operational conflict between its units, especially between the Personal Systems Unit, which produces PCs and workstations for one market, and the other units that provide integrated package solutions for a different market. The conflict in this case is due to the Personal Systems unit?s two functions:
Ø Selling products to the individuals market
Ø Providing other units with products that are to be used as components in integrated package solutions to be sold to organizations.
The Personal Systems market is very competitive with many PC producers getting their product on the market fast. An autonomy strategy would benefit the Personal Systems unit, which would be able to focus on its sales without losing time in coordinating with the other units. On the other hand, the other units would suffer under this strategy because they would lose a supplier of made to specification components.
Our strategic recommendation is that the units should operate as separate businesses, coordinating only when the performance of the individual units will not suffer. The Personal Systems unit produces standard products for an enormous market, so they should not waste time in adapting to the other units. When the other units require components they should buy them from Personal Systems. If these components are incompatible, they should adapt their package system or outsource (out of IBM) the components. The personal systems industry is very competitive because it is simple compared to integrated solutions, services, and products, with lower and decreasing margins. IBM will outsource low margin products and keep high margin integrated products in house.
3. IBM should further integrate the separate systems of its different vendors in order to have satisfied customers
4. IBM employees are experts in products, so they should strengthen ties with firms specialized in applications.
V. IBM vision and strategy of growth today:
1. Today?s mission statement:
?We create, develop and manufacture the industry’s most advanced information technologies, including computer systems, software, networking systems, storage devices and microelectronics.? It has two fundamental missions:
Ø Strive to lead in the creation, development and manufacture of the most advanced information technologies.
Ø Translate advanced technologies into value for its customers as the world’s largest information services company. IBM professionals worldwide provide expertise within specific industries, consulting services, systems integration and solution development and technical support.
2. Today?s objectives:
1) Build marketing for IBM middleware on NT with its channel partners.
2) Be the leader in market share by 1998 on the NT platform.
3. Today?s strategy:
Ø Continue to deliver solutions
-Cross industry
-IBM and partners
Ø Continue to deliver best of breed product
-IBM and partners
Ø Maniacal focus on customer satisfaction
3.1) IBM?s strategy of acquisitions. In 1995, IBM acquired Lotus Development Corp., and the next year acquired Tivoli Systems Inc. Services became the fastest growing segment of the company, with growth at more than 20 percent per year.
3.2) IBM Technologies, whose role is supplying advanced technologies, is currently looking for computer producers with whom it can form alliances. IBM and Dell were in discussions since June 1998 and the result is a strategic agreement worth $16.6 billion over 7 years for IBM. Under this deal they will share their competencies and technologies, and cooperate in developing future technologies. Dell will acquire IBM components for its computers, and database, network, and microelectronic technologies, and they will exchange a large array of licenses. Further areas of cooperation will follow. Dell?s general director says that a company can?t do everything alone. Dell?s share of the US market for servers jumped 95% in 1998 to 5.6%, making it the 5th. IBM is 1st with 30.5%.