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    IBM Marketing Strategy

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    ravips4u
    O IBM was formed in 1911 through a merger of three companies and was originally known as the Computing-Tabulating-Recording Company. It focused initially on products like punch cards, time clocks, and scales, and later moved into mainframe computers. O While IBM had success for many decades, it struggled in the 1990s as the computer industry shifted to personal computers and workstations. Its new CEO Louis Gerstner implemented a strategy of focusing on services and solutions over hardware, and restructuring operations to be more efficient. O Today IBM has transformed to a "Total Solution" company deriving 70% of its revenue from IT services and software. It has divested hardware operations and focuses on areas like cloud computing

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    IBM Marketing Strategy

    Uploaded by

    ravips4u
    421 views22 pages
    O IBM was formed in 1911 through a merger of three companies and was originally known as the Computing-Tabulating-Recording Company. It focused initially on products like punch cards, time clocks, and scales, and later moved into mainframe computers. O While IBM had success for many decades, it struggled in the 1990s as the computer industry shifted to personal computers and workstations. Its new CEO Louis Gerstner implemented a strategy of focusing on services and solutions over hardware, and restructuring operations to be more efficient. O Today IBM has transformed to a "Total Solution" company deriving 70% of its revenue from IT services and software. It has divested hardware operations and focuses on areas like cloud computing

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    O IBM was formed in 1911 through a merger of three companies and was originally known as the Computing-Tabulating-Recording Company. It focused initially on products like punch cards, time clocks, and scales, and later moved into mainframe computers. O While IBM had success for many decades, it struggled in the 1990s as the computer industry shifted to personal computers and workstations. Its new CEO Louis Gerstner implemented a strategy of focusing on services and solutions over hardware, and restructuring operations to be more efficient. O Today IBM has transformed to a "Total Solution" company deriving 70% of its revenue from IT services and software. It has divested hardware operations and focuses on areas like cloud computing

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    421 views22 pages

    IBM Marketing Strategy

    Uploaded by

    ravips4u
    O IBM was formed in 1911 through a merger of three companies and was originally known as the Computing-Tabulating-Recording Company. It focused initially on products like punch cards, time clocks, and scales, and later moved into mainframe computers. O While IBM had success for many decades, it struggled in the 1990s as the computer industry shifted to personal computers and workstations. Its new CEO Louis Gerstner implemented a strategy of focusing on services and solutions over hardware, and restructuring operations to be more efficient. O Today IBM has transformed to a "Total Solution" company deriving 70% of its revenue from IT services and software. It has divested hardware operations and focuses on areas like cloud computing

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 22
    At a glance
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    The document discusses various topics like education, skills, training and career development.

    The main topics discussed are education, skills, career development, training and qualifications.

    Pages 10-11 discuss education qualifications and career paths.

    m 

     
      m

    
          
    m m  
    !
    O Introduction
    O History of IBM

    O The Marketing Mix

    O Traditional Business Model

    O Why IBM Failed?

    O The New Strategy

    O IBM Moves

    O Restructuring of IBM

    O Differentiating Factors of IBM

    O References
     ! 
    O    m  "   `
    abbreviated IBM and nicknamed "Big Blue" (for its
    official corporate color).
    O IT consulting corporation headquartered in Armonk`
    New York` United States.
    O IBM manufactures and sells computer hardware and
    software (²    ).
    O 2urrently ranked 20th in Fortune 500 list of companies.

    O Ranked 14th in year 2009.


     ! 
    O 9eader in Information Technology and Service
    Industry.
    ? 
      m
    O Incorporated in 1885 with the merger of 3 companies.
    O  # m  $" 

    O    $ ! $" 

    O  $"   "   


    O In 1911` the new company was called the  $"
     #  !%& "   .
    O @arlier` the company produced "! !
    equipment` $ ` 
    "²` $   $
     $" and $ $"` and
    $ "  .
    ? 
      m
    O In 1915` Thomas J Watson became the GM of 2TR.
    O On February 14` 1924` the 2 T R name was formally
    changed to International Business Machines 2orporation.
    (By Thomas J Watson)
    O In 1928` the company held its  $
    !   '
    O IBM was among the first corporations to provide group
    life insurance (1934)` survivor benefits (1935) and paid
    vacations (1936).
    ? 
      m

    O In April 1993` IBM hired 9 '(.


    as its new 2@O.
    O In 2001` services and software combined together
    represented 58% of total revenues which was
    27% in 1993.
    O In 2009` 70% of revenue came from services and
    software.
    Om  m

     
     9    
    
     
      
    
    
     
    

      

     
     
    
         
          
     O   O
      
     !  m !

    O )  m   $ $"


    $
    O )   $

    O )  ? !²  !

    O )    

    V
     m) !***
    Inspite of having a pool of smart` talented
    people & ++,  
       ---yet the company
    was frozen in place «.The fundamental
    issue was of

    ./ ,+
    +²  

    O 0 a number of its  !² $  


    "  .
    O Focus on becoming a ´    ’ company.

    O Advertisements (´!  $  ’ 2ampaign)

    O Focus on    !" !  .


    +²  

    O 1    2company
    O In March 1991` IBM divested a number of its
    hardware manufacturing operations.
    O Started focusing on IT solutions and services.
    O Today` 70% of its revenue comes from IT
    solutions and services.
    O Ranked 1st in IT service industry. (Source:
    Fortune 500).
    +²  

    O  !  
    mm %344563474&
    O 3445
    | Sells P2 division to 9enovo
    | Acquires several software product
    companies
    | Revenues = $96.5 Billion
    mm %344563474&
    O 3448

    | Revenues dip by 5%
    |  to target high
    growth countries.
    | Buys more than 14 companies
    mm %344563474&
    O Restructuring Process
    m#  m  $"  
      
    Top heavy` individual countries Manpower and hierarchy in Productivity gains of 10 15 % in
    were run as fiefdoms high cost economies reduced` 6 delivery and support functions
    regions formed

    @very country had its own Support function were Helped in saving $1 Billion in
    delivery and support functions centralized and delivered out of support cost` around $2 Billion in
    low cost centers delivery cost

    Procurement spread across Procurement shifted to china; Improvement in @PS` enhanced


    countries and managed out of 100`000 employees in low cost competitiveness against offshore
    the US countries players

    Small presence in low cost but Market share increase in high Supply chain gains were huge`
    high growth countries growth countries; top player in target in 2006 was $3 billion $5
    BRI2 countries billion

    Though the company was Operations` delivery` supply Savings were used to invest in
    international` it was not chains` and even sales are now high growth countries making
    globally integrated spread globally IBM a dominant player
    mm %344563474&
    O 3449

    | "#
    5:
    | Acquired more than 13 companies in
    the software arena
    | International investor·s conference in
    Bangalore î $"   
    0 " 
    mm %344563474&
    O 344;
    | Revenues up by 8%
    | Bottom line improves î 9 ²6 
    "  # $  
    | Workforce in low cost` high growth
    countries reaches 100`000
    | Acquired more than 9 companies
    mm %344563474&
    O 344<63474
    | Downfall in sales.
    |   !   ² were
      than ever despite the
    recession` thanks to a  !
     6$ 
     ²  ! that are
    designed to help businesses save
    money and find customers.
    Differentiating Factors
    O Growth engine for IBM î Application of
    technology` not its invention.
    O IBM differs from its peers in that it has also
    ! "!  $ .
    O IBM looked at BRI2 (Brazil` Russia` India and
    2hina) countries as $  !  ²6 
    !
     "  (out sourcing).
    O High priority to innovation (Heavy spending on
    Research & Development)
     
    O http://$ 
    '' $/
    O http://economictimes.indiatimes.com/

    O http://www.ibm.com
    Thank You!!

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