1. Presented By:
Barkat Ullah
Asad Aziz
Hashmat Ullah
M. Hassan Yousaf
M. Rafeh Umair
IBM “On Demand Business” Strategy
Asia Case Research Center
The University of Hong Kong
3. 33
IBM in Growth Markets: over 140 countries
Latin America
Australia /
New Zealand
ASEAN
Greater China Group
South Korea
Central & Eastern Europe
India /
South Asia
Middle East
& Africa
4. Q. 1) Strategic Objectives of IBM
• IBM Global Services
• IBM Research
• E-Business Strategy
• IT Innovation and Creative Solutions
• Consulting and Technology Integration
• Business Performance Transformation Services
• Business Process Outsourcing
• Market Growth
• Leader in Computer Machines
5. Q.2) Strategic Problems of IBM
• Declining in Core Business
• Un-Productive Employees
• Legal Anti-trust Problems
• Strategic Decision Making
6. SWOT Matrix
STRENGTHS WEAKNESSES
• Brand Reputation
• Leading provider of IT services
• Strong Strategic Consultancy
• Strong research and
development capabilities
• Weak enterprise mobility product
portfolio
• Expensive IT software solutions
and services
• Focus mainly on large
enterprises
OPPORTUNITIES THREATS
• Expansion in emerging markets
• Growing information on
demand tools market
• Strategic acquisitions
• Increase in BPO (Business
Processing Outsourcing)
• Intense competition
• Economic Slowdown in US and
Europe
• High substitutes available in the
market
7. Proposed Strategies
1. S1O1 = Brand Reputation, Expansion in emerging markets.
2. S3O4 =Strong Strategic Consultancy, Increase in BPO.
3. S1T3 =Brand Reputation, High substitutes available in the
market.
• S4T3 =Strong research and development capabilities,High
• substitutes available in the market.
S2W2=Leading provider of IT services, Expensive IT
software solutions and services.
• W1T1=Weak enterprise mobility product portfolio,
Intense competition.
13. 13
0%
1%
2%
3%
4%
Worldwide IT Spend as % of N-GDP
4th
era may increase IT’s share of worldwide GDP to 4% by 2030
1st
era of IT
Mainframe
2nd
era of IT
Personal
Computing
3rd
era of IT
Internet
Computing
4th
era of IT
Smarter
Planet
IBM 7000 mainframes
with transistors
New IT/business
architectures
Vertical solutions
Cross-industry
solutions
Source: IBM Market Analysis extrapolated from IDC Black Book for IT and IBM Corp Finance for N-GDP,
Forrester Research “Next Wave of IT Investment is Smart Computing” Jan 2010, IBM Research GTO 2011 “Frontiers of IT”
Worldwide IT Spend as % of GDP
DEC PDP-8
minicomputer
UNIX OS
Apple-1
IBM PC
eBusiness Apps
Cloud
Computing
Mobility
Netscape IPO
MS
Windows
3.0; WW
Web
Learning systems
Advanced robotics
Smart-net
14. Short Listed Strategies
• Value Added Services in IT Industry
• Expansion of Integrated Operations in Developing Nations
• Remixing of IBM Business for Better Integration
• Increase products and Services in Business To Customer
• IBM’s Mobo (A new step in Enterprises growth and Innovation)
(IBM) is an information technology company providing
business technology and consulting services. The company offers a range of services and
technologies, which include hardware, software, financing, research and chip technologies. The
company is a leading provider of IT services in the industry. A leading position in the market enhances
the company’s brand image and competitive position. Intense competition, however, adversely
affects the company’s market share, revenues and margins.
IBM sold the personal computing department for China's biggest computer manufacturer Lenovo for 17 hundred million 5,000 ten thousand US dollars.