CASE ANALYSIS

BY URMI ARORA
“I learned to always
take on things I’d
never done before.
Growth and comfort
do not coexist.”
-Ginni Rometty-
International Business
Machines
Corporation(IBM)
manufactures and sells
computer hardware and
software, offers
infrastructure services
and provides global
consulting services.
 ROOTS OF THE
COMPANY

1910s to 1940s

IBM’s growth exploded, led

primarily by sales of
tabulating machines.

Established some of IBM’s

most successful business
tactics such as
exceptional customer
service, knowledgeable
sales force and a focus on
large scale solutions
for businesses.
1950s to 1980s

Worked with the

government to build
the air defense SAGE
computer system.

Launched
revolutionary
computers called
System/360,
producing
approximately 70% of
all computers.
 1980s to 2000s
During the 80s, its market share and
profits eroded as the PC revolution
changed the way consumers bought
technology.

In late 90s, it introduced

the iconic ThinkPad,
which helped regain lost
share.
TODAY
IBM is the largest and
most profitable
information technology
company in the world,
with over $103 billion in
sales and holds more
patents than any other
US based technology
company.
With such a
long history of
ups and
downs, how
has IBM been
able to
succeed?
 Business
was made
genuinely
global by
following
similar
practices!

IBM reconnected the

company’s business units and
created a consistent, universal
message.
IBM completely
transformed its
portfolio.
It sold its ThinkPad
division to Lenevo and
exited disk drives.
It embraced global
consulting and data
analytics by acquiring
close to 100 firms,
including
PricewaterhouseCoopers.
Success comes
from leadership,
not mere
survival!
IBM understood the relevant trends,
figured out how its strengths and
resources could capitalize on them.
They recognized the growth of
Internet and then helped clients
harness it for their businesses, with
their eBusiness initiatives.
Can IBM
succeed
with its
current
strategy?
IBM now focuses on
solving the world’s
most challenging
high-tech problems,
such as better water
management, lower
traffic congestion, and
collaborative health
care solutions. It aims
at creating a
“Smarter Planet”
Research and
Development
IBM has invested
a lot and
continues to do
so in its R&D
Sector and
approximately
30 percent of its
annual R&D
budget goes
towards long-
term research.
Who are IBM’s biggest competitors today,
and what risks do they face with their
current strategy?
MAJOR COMPETITORS OF
IBM
RISKS WITH CURRENT STRATEGY
•Cloud based services will cannibalize its
three mainstays: data center services,
computer hardware and software.

•Sustainable solutions to the current

problems have to be found out

•Low success rate

•To remain ahead of competitors

Created by Urmi Arora,
NSIT, during a marketing
internship under Prof.
Sameer Mathur, IIM
Lucknow.