IBM Overview and Analysis

This report provides an overview of IBM, including its history, current performance, strategic posture, external environment, and more. It analyzes IBM's competitive advantage and organizational structure, and recommends strategies for the future.

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IBM OVERVIEW AND ANALYSIS
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IBM overview and analysis 2
EXECUTIVE SUMMARY
IBM one of the pioneer brands of I.T industry which are essentially identified with computing,
having its arm spreads to all matters related to innovation whether it is about a device or the
software IBM is worlds among biggest IT organization with 2017 annual incomes of $79.7
billion (Jannesson, Nilsson, & Rapp, 2017). Initially, the company was referred to as the
Computing-Tabulating-Recording Company (CTR) in 1911 when it started.it was later renamed
to international Business machine (IBM) in 1924. Its products and services are mainly focused
on technology and innovation such as the manufacture of computer hardware and electronic
equipment, it also offers c0nsultations services in the field as well as hosting services, basically,
almost every technology device in the market has something to do with IBM either indirectly and
directly (Kotabe, & Kothari,2016). this report will conduct an overview of IBM with a further
analysis and depiction of its standing in the global market. It will also analyze the competitive
advantage it has been utilizing for close to a century in order to remain relevant and dominance
in the market, an overview of the management and organizational structure will also be discussed
in the paper. moreover, several strategies will be recommended and implanted where finally an
evaluation and control if the strategies will be done
Table of Content

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s
1. INTRODUCTION...................................................................................................................7
A.Company background..............................................................................................................7
2.CURRENT SITUATION.............................................................................................................8
A. current performance................................................................................................................8
B. strategic posture......................................................................................................................9
i. Mission statement.................................................................................................................9
ii. Vision statement...............................................................................................................10
iii. Goals and objectives.........................................................................................................10
iv. Strategies..........................................................................................................................11
v.Policy..................................................................................................................................11
3.STRATEGIC MANAGERS.......................................................................................................11
Top management.......................................................................................................................13
4. EXTERNAL ENVIROMENT...................................................................................................14
A. Natural environment.............................................................................................................14
B.Social environment -PESTLE................................................................................................14
1.political...............................................................................................................................14
2.Economical.........................................................................................................................15
3.socila cultural......................................................................................................................15
4.technological.......................................................................................................................16

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5.Ethical.................................................................................................................................17
6.legal.....................................................................................................................................17
Task Environment- Porter’s Five Forces...................................................................................18
2. rivalry among existing companies.....................................................................................19
3.Threat of substitutes............................................................................................................20
4.Bargainig power of suppliers..............................................................................................20
5.bargining power of buyers..................................................................................................21
5. INTERNAL ALAYSIS.............................................................................................................22
A. corporate structure -Functional level Strategy......................................................................22
B. Corporate culture...................................................................................................................23
C. Corporate resources...............................................................................................................23
5.ANALAYSIS SITUATIONAL FACTORS...............................................................................24
A. Situational Analysis-SWOT.................................................................................................24
1.Strengths.............................................................................................................................24
2.Weakness............................................................................................................................25
3.Opportunities......................................................................................................................26
4.Threats................................................................................................................................27
7.STRATEGY...............................................................................................................................28
A. Strategic type........................................................................................................................28
1.corporate level strategy.......................................................................................................28

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2.Business level strategies.....................................................................................................30
B. strategic group map...............................................................................................................30
8. STRATEGIC ALTERNATIVE AND RECOMMENDATIONS.............................................32
A. strategic alternatives.............................................................................................................32
B. Recommendations.................................................................................................................33
9.STRATEGY IMPLEMENTATION...........................................................................................33
10. EVALUATION AND CONTROL..........................................................................................34
11. CONCLUSION........................................................................................................................35
12.REFERENCES.........................................................................................................................36

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LIST OF FIGURES
1. Figure 1: IBM results of Q1 2018……………………………………………………. 9
2. Figure 2: IBM board of director experience and skills ………………………………12
3. Figure 3: IBM’s organizational structure ………………………………………….... 13
4. Figure 4: porter 5 analysis of IBM …………………………………………………...28
5. Figure 6: Strategic map brand equity…………………………………………………31
6. Figure 6: Strategic map brand equity…………………………………………………32

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IBM OVERVIEW AND ANALYSIS
1. INTRODUCTION
A.Company background
IBM one of the pioneer brands of I.T industry which are essentially identified with computing,
having its arm spreads to all matters related to innovation whether it is about a device or the
software IBM is worlds among biggest IT organization with 2017 annual incomes of $79.7
billion (Jannesson, Nilsson, & Rapp, 2017). Initially, the company was referred to as the
Computing-Tabulating-Recording Company (CTR) in 1911 when it started.it was later renamed
to international Business machine (IBM) in 1924. Its products and services are mainly focused
on technology and innovation such as the manufacture of computer hardware and electronic
equipment, it also offers c0nsultations services in the field as well as hosting services, basically,
almost every technology device in the market has something to do with IBM either indirectly and
directly (Kotabe, & Kothari,2016).
Its main headquarters are in Armonk, New York, United States, it currently has 380,300
employees in over 170 countries globally. IBM has been on the market for over a century and it
has managed to stay relevant and strong in the Market share up to now (Dietrich, Plachy,&
Norton, 2014). It has made enormous contributions and strategic innovations that have shaped
the IT world and globalization. innovations like the think pad 750 that had a major impact in
space explorations, the environmental management software developed by IBM in 1999 for the
purpose of protecting and monitoring environmental changes, development of the IBM system
390 which has paved way for innovation and advancement of powerful computing power (Lesser
& Ban,2016). Simply IBM has been the burning candle for technology innovations which has
also revolutionized businesses and increased globalization

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2.CURRENT SITUATION
A. current performance
The first quarter of 2018 saw IBM earn a revenue of 19.1 billion dollars which is an increase of
5% which reflects abroad based improvement of in year to year performance since the fourth
quarter of 2017. The continuing operations from GAAP EPS of $1.81 while in operating GAAP
of $2.45, increased by 4%.the strategic imperatives revenue of the past 12 months saw a 12$
increase which represents 47% revenue generated by IBM. There an increase in 22% from the
cloud revenue which garnered 17.7 billion dollars over the past 12 months, is exit run rate
generated revenue of$10.7b in the quarter representing a 25% increase.so far the first quarter has
done more than expected although it shocked the stock market with a 6% drop moreover an
increase in growth and revenue is expected in the coming quarters due to numerous investment
in Security and AI.

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Figure 1: IBM results of Q1 2018
B. strategic posture
i. Mission statement
IBM’s mission is “to lead in the creation, development and manufacture of the industry’s most
advanced information technologies, including computer systems, software, networking systems,
storage devices and microelectronics. And our worldwide network of IBM solutions and services
professionals translates these advanced technologies into business value for our customers. We

IBM overview and analysis 10
translate these advanced technologies into value for our customers through our professional
solutions, services and consulting businesses worldwide.”
ii. Vision statement
IBM’s vision is “to be the world’s most successful and important information technology
company. Successful in helping out customers apply technology to solve their problems.
Successful in introducing this extraordinary technology to new customers. Important, because
we will continue to be the basic resource of much of what is invested in this industry.”
iii. Goals and objectives
IBM is fully focused on technology and innovation to maintains its market share as well as
impacts the technology world, below are the goals and objectives for IBM has for the next 5
years.
i. To make a smartphone that delivers a 3D image of individuals and their environment so
users can associate and for all intents and purposes SHOW what they are discussing.
ii. To make batteries that utilization oxygen to re-charge.
iii. To use officially exhibit innovation, for example, mass information arranges inside
organizations' yield vitality in a reused way that could really heat or cool buildings.
iv. To enhance transportation by a gadget that gives ALL potential outcomes for a driver's
conceivable courses to an area contemplating driver's examples, climate, development,
best modes, and so forth.
v. To utilize static or active vitality to work little gadgets, for example, the iPod without
batteries altogether.
vi. To utilize current innovation to assemble specific information, for example, information
about adjacent streams, quake information, et

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iv. Strategies
Quality Differentiation Strategy-IBM was able to sustain a completive advantage over the year
through this strategy. They achieved this by allocating vast resources to R&D which motivated
and advanced technology and innovation of their current products and looking for ways to make
the far more superior and advanced than similar products of its rivals. These advanced products
were now placed under premium products which were pricey but worth it in quality (Cummings,
& Worley,2014). The premium marker responded efficiently to these products increasing their
revenue and market share over the years
v.Policy
Open Architecture Policy-This policy allowed IBM to share technology through licensing other
firms and manufactures for a royalty fee of the PC-DOS operating system. This further expanded
market through increasing the number of DOS users. moreover, it gave incentives and a basis for
IBM to create more product and services to support this growing number of consumers
3.STRATEGIC MANAGERS
A. Board of directors
IBM's Board of Directors is in charge of supervision of the general issues of IBM. To help it in
completing its obligations, the Board has designated certain specialist to a few advisory groups.
Following the Annual Meeting in 2018, the Board will comprise of 13 executives, every one of
whom are autonomous with the exception of Mrs. Rometty, IBM's Chairman and CEO. In the
meantime between Annual Meetings, the Board has the specialist under the by-laws to increment
or reduction the span of the Board and to fill opening. The IBM Board is composed of a diverse
group of members, all pioneers in their particular fields (Sundaramurthy, Kor, &
Pukthuanthong, 2015). The majority of the ebb and flow chiefs have initiative involvement with

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real residential and worldwide organizations with tasks inside and outside the United States or at
scholarly or look into establishments, and experience on other organizations' sheets, which gives
a comprehension of various business procedures, difficulties and techniques. Further, IBM's
chiefs have other experience that makes them significant individuals from the Board, for
example, open approach or administrative experience that gives understanding into issues looked
by the Company (Rehman,et al,2016).
The Directors and Corporate Governance Committee and the Board trust that the previously
mentioned properties, alongside the initiative aptitudes and different encounters of the Board
individuals depicted underneath, give IBM the viewpoints and judgment important to control
IBM's procedures and manage their execution (Brewster,2017). The figure below shows the
experience of each board member that contributes to efficient and strategic decision making
Figure 2: IBM board of director experience and skills

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Top management
Top management interprets the policies which have been formulated by the board of directors
into objectives, goals, and techniques, and tasks a common vision without bounds. It is essential
in the decision-making process that influences everybody in the firm and is considered totally
reliable the achievement or disappointment of the venture The CEO Virginia Rometty is the
highest-ranking executives in the firm followed by the board members and the product and
departmental heads IBM has a product-type divisional authoritative structure (Purce, 2014). The
principle normal for this sort of authoritative structure is the portrayal of business forms engaged
with dealing with the improvement, creation, conveyance, and sale of products. This ensures
efficiency and maximum utilization of resources, as well as a transparent implementation of
resources and policies, formulated by the top management
Figure 3:IBM’s organizational structure

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4. EXTERNAL ENVIROMENT
A. Natural environment
This is the group of natural resources that IBM uses in producing its products and services such
as hardware and equipment evident when organizations such as IBM and is competes acquire
raw materials without limit causing a ripple effect to the environment causing natural disaster
such as floods global warming and cooling, tsunami and earthquakes etc. It the duty of these
firms and originations to protect the environment. IBM has taken major steps in protecting the
natural environment through allocations of funds used in innovation and implementing
technology that will help in environmental conservation (Sayre, 2014). A good example of a
project is the research and conversation into clean energy that supported and funded by IBM in
collaboration with top-notch scientists to save energy and reduction of global warming from the
emission of co2 (Ziegler et al 2014)
B.Social environment -PESTLE
1.political
The IBM company has close ties with the current president of USA Donald J. Trump. He is a
business mogul who shockingly won the American presidential elections. The guy is known for
his unpredictability in making decisions that have huge impacts globally. However, IBM in the
recent years has been in business with Trump in supporting his business technologically (Austin,
& Pisano, 017). Therefore, IBM might consider its self-lucky to be a close ally, It benefited from
the bill passed months ago on taxes that would see the firms increase revenue. However, in the
past recent weeks, there has been an increasing rivalry between China and USA causing a trade
war that would affect IBM’s international markets as well as other tech US giants has most of

IBM overview and analysis 15
their products are manufactured in China as low-cost production which would see a tremendous
effect on revenue generation (Wu, C. 2017), (Liu, 2018),
2.Economical
Economic conditions may exhibit openings and dangers that influence IBM and the data
innovation industry. The effect of financial patterns and related factors on the organization are
evaluated in this component of the PESTEL/PESTLE examination. IBM must record for the
accompanying financial outside elements in its remote or macro-environment:
• Stable monetary development in real markets
• Quick development of creating markets
• Rising interest in online products
Stable economic growth in significant markets makes open doors for firms like IBM to keep
building up their tasks with negligible issues in regards to unwanted financial patterns in these
business sectors. Then again, the fast development of creating markets is an outside factor that
relates to development open doors for data innovation firms, particularly through the market
entrance procedure
3.socila cultural
The sociocultural circumstance can exhibit challenges in IBM's activities and decide the general
state of the remote or full-scale condition. .The outer factor of rising buying limits identifies with
IBM's chance to infiltrate markets. For instance, higher deals incomes are expectable, as target
clients are progressively equipped for buying data innovation items from the organization. Then
again, the remote or full-scale condition presents significant open door in light of the rising
utilization of client benefit in assessing item quality and business quality. Intending to this
outside factor, IBM's hierarchical culture can give the establishment to applying higher-quality

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client benefit gauges for IBM to pull in a greater piece of the pie. In addition, the expanding
utilization of online administrations is set apart as an open door in this outside examination. For
example, offering more cloud stage items can build the organization's incomes. This component
of the PESTEL/PESTLE examination demonstrates that IBM has development openings in light
of market entrance, client benefit, and online administrations
4.technological
IBM faces the external factor of technological integration in different ventures and markets. This
pattern is a risk since it draws in new participants from different ventures. These new contestants
have interests in broadening their organizations and force a direct risk against the organization.
For instance, some data innovation advertise portions could pull in modern apply autonomy
firms to build up their own particular items to contend with a portion of IBM's items (Paroutis,
Bennett, & Heracleous, 2014). In any case, the pattern additionally displays a chance to extend
business activities outside the customary market for data advancements. (McNeill, 2015). Then
again, cybercrime is another outer factor that debilitates the organization. This risk comes as
potential digital assaults on online foundation. In any case, cybercrime is likewise set apart as an
open door in this outer examination. For example, IBM has the chance to improve its defensive
measures against digital assaults. Likewise, the organization has the chance to create and offer
progressed digital security items to its customer base. Beside these outer variables, the remote or
full scale condition exhibits the chance to develop the organization's incomes in giving cloud
stage administrations. In this way, in this component of the PESTEL/PESTLE investigation,
extensive openings and dangers influence IBM's remaining in the worldwide market.

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5.Ethical
IBM has been met with various ethical issue that has impacted on its productivity and
development. It was recently found guilty of monopolizing the computer industry so as to stay
ahead of their competitors and retain a good revenue streak. Moreover, business or deals that are
thriving due to corruption and bribery are ultimate unethical in the long run. A connection was
uncovered in the case of Samsung and the former and first female president of south kores who
was found guilty. The success f IBM may have solely been unethically based. IBM has also
focused on creating a conducive working environment for its employees which foster
collaborations and sharing of ideas in the long run
6.legal
improving general licensed innovation securities are an outside factor that makes open doors for
IBM's business extension by lessening protected innovation infringement in the data innovation
industry. Notwithstanding, in spite of such pattern of enhancing securities, the organization still
faces issues in creating markets. For instance, in spite of noteworthy financial open doors in
Southeast Asia, nations in the area experience the ill effects of feeble execution and escape
clauses in licensed innovation insurance (Su, ,Dhanorkar, & Linderman, 2015). This condition in
the remote or large-scale condition is a test against IBM's systems of creating higher incomes in
creating markets. All things considered, a similar outer factor with regards to creating markets is
viewed as an open door in this outside examination. For example, IBM can participate with the
legislatures of creating nations to address protected innovation concerns while boosting the
organization's image acknowledgment and ubiquity in these business sectors. Furthermore, the
outer factor of growing e-squander control shows an open door for IBM to enhance its natural

IBM overview and analysis 18
effect. This open door exists despite the fact that such directions undermine the business as far as
more prominent weight and potential limitations in view of natural concerns. Subsequently,
enhancing forms for lawful consistence and collaboration with different associations can address
the dangers and openings in this component of the PESTEL/PESTLE investigation.
Task Environment- Porter’s Five Forces
1.Threats of new entrants
The impact of new section on business execution is tended to in this part of the Five Forces
investigation of IBM. New contestants or new firms add to the general level of rivalry and can
lessen the organization's offer in the data innovation showcase. IBM must consider the
accompanying outside variables that add to the direct force of the risk of new section in the
business condition:
i. High impersonation potential is very strong
ii. Direct cost of changing is moderate
iii. High cost of entry is weak
Similarly, as it adds to the power of aggressive contention, the outer factor of high impersonation
potential has a solid commitment to the danger of new contestants in the business condition. For
instance, new contestants could prevail by creating data innovation items that are exceptionally
like IBM's. Then again, the direct cost of changing has an extensive commitment to the power of
this power. This demonstrates IBM's clients are modestly liable to utilize new contestants' items.
Be that as it may, the high cost of passage, which relates to the cost of building up tasks in the
business, debilitates the risk of new participants. In any case, new passage inspiration may stay,
in light of the innovative incorporation drift in various ventures, as decided in the

IBM overview and analysis 19
PESTEL/PESTLE examination of IBM. All things considered, the mix of the outer factors in this
part of the Porter's Five Forces investigation prompts the direct power and essentialness of the
risk of new contestants.
2. rivalry among existing companies
The degree or power of rivalry is assessed in this part of the Five Forces investigation of IBM.
Contenders force weight on the organization regarding the piece of the share market, estimating,
and benefits, among different factors appropriate to the data innovation industry condition
(Banks et,al 2016). For this situation, the solid force of aggressive contention against IBM
depends on the accompanying outer elements:
i. Direct level of separation (moderate)
ii. High impersonation potential (strong)
iii. High forcefulness of firms (strong)
IBM's outside condition includes respectably separated contenders. This impressive yet
constrained separation is obvious in the varieties in the highlights of items accessible in the data
innovation industry. For instance, a few organizations offer mostly information mining items,
while different organizations give chiefly exchange handling items. This outside factor has a
direct commitment to the power of focused competition against IBM. Then again, the high
impersonation potential is a solid power that empowers contenders to offer items that are
profoundly like those of the organization. IBM's bland system and concentrated development
procedures include cost initiative and low accentuation on item uniqueness, prompting the
imitability of the organization's items. Also, the high forcefulness of firms additionally
strengthens the power of rivalry in the business condition. This forcefulness is connected in
advertising efforts, item improvement, and different regions of business. Thusly, this part of the

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Porter's Five Forces investigation demonstrates that IBM must fortify its upper hand to manage
the solid power of rivalry.
3.Threat of substitutes
The business execution of IBM is liable to the power of substitutes, as decided in this part of
Porter's Five Forces examination of the data innovation industry condition. Substitution
debilitates the organization as far as lessening in incomes. This outer examination considers the
capability of fruitful substitutes to make set up firms bankrupt. The outer components that
prompt the direct power of the danger of substitution against IBM are as per the following:
i. Direct cost of changing (average)
ii. Direct accessibility of substitutes (average)
iii. Direct apparent level of item separation (average)
The direct cost of changing makes a significant obstruction against clients' utilization of
substitutes to IBM's data innovation items. For instance, clients may cause a few expenses from
changing their hardware, however such expenses might be inside their money related limits. In
connection, the direct accessibility of substitutes is an outside factor that modestly affects clients'
inclination to utilize substitutes rather than IBM's items. Then again, the direct apparent level of
item separation alludes to clients' impression of the relative uniqueness of items, including
substitutes. This outer factor correspondingly urges IBM's clients to consider utilizing substitutes
that may have the highlights they require (Gerow, Thatcher, & Grover, 2015). These variables
prompt the direct power of the danger of substitution in the business condition. Accordingly, this
part of the Porter's Five Forces investigation of IBM recommends the noteworthiness of
substitution in impacting business execution.

IBM overview and analysis 21
4.Bargainig power of suppliers
suppliers effect on IBM's business and the business condition is evaluated in this part of the Five
Forces investigation. Providers have use as far as their immediate impact on the organization's
inventory network, and additionally the quality and cost of materials accessible to the data
innovation business. In this outside investigation, the accompanying are the powers of the outer
components that keep up the direct power of the dealing energy of IBM's providers:
i. High general supply (limited)
ii. Direct size of individual providers (average)
iii. Low capacity to substitute supply (so)
The production network region of IBM's tasks administration is affected by the direct power of
the haggling energy of providers. Likewise, this bartering energy of providers is one of the bases
utilized for provider bolster programs incorporated into IBM's corporate social duty (CSR)
technique. The high general supply is an outer factor that pitifully strengthens this power. For
instance, an individual provider's adjustment in activities has low effect on the general supply
level, in this way likewise having low effect on IBM. Then again, the direct size of individual
providers has a correspondingly direct commitment to provider control. For example, in view of
the size of its activities, a worldwide provider of crude materials for the produce of processing
equipment can have an impressive however direct effect on IBM. The energy of providers is
likewise reinforced due to the low capacity of the organization to substitute its supply, in view of
the particular material necessities of the business. In view of this part of the Porter's Five Forces
investigation of IBM, providers are a noteworthy vital thought in the business condition Porter,
& Magretta, 2014).

IBM overview and analysis 22
5.bargining power of buyers
The power of customers or buyers to bargain or force their requests is resolved in this part of
Porter's Five Forces examination of IBM. Clients are the wellspring of the organization's
incomes, accordingly specifically influencing the benefits and monetary remaining of the data
innovation business. The accompanying outer components add to the direct force of the dealing
energy of clients in IBM's industry condition:
i. A high number of clients (weak)
ii. Direct size of each request (average)
iii. The direct cost of changing (average)
The high number of clients is an outside factor that has a feeble commitment to the bartering
energy of purchasers in the data innovation industry. This condition debilitates singular clients'
impact on IBM. Be that as it may, the direct size of each request fortifies clients' energy in the
business condition. For instance, an organization with across the country activities in the
sustenance benefit industry orders a large number of machines from IBM. Such size of
procurement extensively heightens the haggling energy of purchasers (Piercy,2016).. The cost of
changing is likewise incorporated into this part of the outside examination of IBM. Such cost is
direct in the data innovation industry. For example, despite the fact that changing a supplier of
business machines might be expensive, clients, particularly vast ones, can even now do as such
to a constrained degree. In this way, this part of the Five Forces examination uncovers the direct
essentialness of clients' dealing power in IBM's key designs.

IBM overview and analysis 23
5. INTERNAL ALAYSIS
A. corporate structure -Functional level Strategy
The principle normal for this sort of authoritative structure is the portrayal of business forms
engaged with dealing with the improvement, creation, conveyance, and sale of products. This
ensures efficiency and maximum utilization of resources as well as a transparent implementation
of resources and policies formulates by the top management. therefore, the use of a functional
level strategy It advocates for the business to see its administration choices as particular to a
practical region of the association, for example, advertising, HR, back, data administration and
advertising (Wheelen,et,al 2017). The upsides of this are workers and assets can be doled out to
the assignments that best suit their abilities and interests. In the event that you have a
representative with ability in HR, for example, it makes sensible. Therefore, functional level
strategy, is essential in managing the wide range activities of IBM.
B. Corporate culture
The culture in IBM is an elite cooperate culture, contracts just the best since it's continually
stretching the limits and needs representatives to not simply keep up, but rather lead the way .
Imaginative and here and there brave, organizations with a world class culture enlist sure,
competent, aggressive competitors. The outcome? Quick development and making enormous
sprinkles in the market. Organizations with tip top societies are frequently out to change the
world by untested means (Guiso, Sapienza, & Zingales, 2015) Their clients are frequently
different organizations that need their items to stay applicable and skilled in another condition—
one regularly of the tip top refined organization's creation. The innovative projects and advanced

IBM overview and analysis 24
research for the purpose of changing the worlds through technology illustrates the need to change
the world.
C. Corporate resources
IBM is fortunate enough to have sufficient cooperate resources that can be used in adapting to
changes in the environment. This resource includes monetary power where tht have the ability to
finance any venture deem to be strategic, the firm also has strategic branches all over the world
and are essential and paramount to their success. IBM employees are among the most skilled in
the globe, they are essential in meeting the goals and objective of the firm for the purpose of
making the world a better place through the sue of technology
5.ANALAYSIS SITUATIONAL FACTORS
A. Situational Analysis-SWOT
1.Strengths
The interior vital components that help or advance business development and versatility are
recognized in this component of the SWOT examination of IBM. These variables are qualities
that keep on supporting the organization in its over 100 years of business activities in the
worldwide data innovation industry. IBM can accomplish assist development and improvement
by adding to or enhancing the accompanying business qualities:
The IBM mark is one of the most grounded in the worldwide data innovation advertise. The
brand's esteem depends on item prominence and time-tried adequacy, and the organization's
aptitude in giving equipment and programming answers for customers. This inside factor enables

IBM overview and analysis 25
the organization to effectively pull in and hold clients for present and new items. Another quality
is IBM's ability underway procedures and materials administration. Such mastery depends on a
long history of advancement, which shapes the organization's business systems and human asset
improvement programs for IBMers' ability and aptitudes, and impacts the improvement of the
business. IBM's authoritative culture likewise adds to this quality. Also, the organization profits
by its broad protected innovation portfolio (Hickman,& Silva, 2018). For instance, having one of
the most astounding quantities of licenses reinforces the organization and its upper hand. Then
again, the high economies of scale add to business abilities in keeping up aggressiveness in spite
of the high expenses of growing new innovative items. This component of the SWOT
examination demonstrates that IBM has real qualities that can keep the business developing in
spite of intense rivalry.
2.Weakness
In this component of the SWOT examination, the interior vital elements that decrease or farthest
point IBM's business execution are resolved. These components are shortcomings that the
organization must overcome through key activities or changes in business tasks and procedures.
With regards to the data innovation advertise, IBM must address the accompanying
shortcomings:
i. Imitable items
ii. Contracting item blend
iii. Low level of enhancement
The shortcoming of the imitability of items depends on the cost initiative non specific technique
In this methodology, the organization centers around cost minimization in business forms. Be

IBM overview and analysis 26
that as it may, the system is connected with insignificant accentuation on item uniqueness.
Subsequently, it is simple for contenders to create innovative items like those of IBM. The
organization additionally has the shortcoming of a contracting item blend. This inside factor
depends on late key changes that plan to concentrate the business on center tasks with high
benefit potential. For instance, the organization sold its PC business to Lenovo in 2005. In
connection, IBM has a low level of broadening. This shortcoming relates to the organization's
tasks in just a set number of business sectors inside the data innovation industry, prompting high
dangers in view of these business sectors. This issue has even declined as a result of the
association's contracting item blend. This component of the SWOT investigation of IBM
uncovers potential challenges of developing the business and protecting it from showcase-based
dangers (Matt, Hess & Benlian,2015).
3.Opportunities
the external strategic factors that add to ideal conditions for business development are
distinguished in this component of the SWOT examination of IBM. These elements are openings
connected to changes in the data innovation industry and related markets, for example, the
change of the predominant mechanical systems utilized as a part of the market (Laszlo &
Zhexembayeva,2017). The accompanying are open doors for the development of IBM's business:
i. Business expansion in different enterprises
ii. Partnerships with firms from various ventures or markets
iii. Quick development of new items
The chance to differentiate IBM's business in different ventures is specifically connected to the
organization's shortcoming of having a low level of broadening. In misusing this opportunity, the

IBM overview and analysis 27
organization can utilize its qualities to infiltrate different markets. Another open door for IBM is
to create unions with different firms in various ventures and markets (Lee,et,al 2015). This
outside factor depends on the pattern of mechanical combination in enterprises and marketsFor
instance, the results of different ventures, for example, the car business, are winding up
progressively subject to registering innovations. Then again, the chance to quickly enhance
bolsters the organization's aggressiveness in view of its innovative work skill and the quality of
having a broad licensed innovation portfolio. Consequently, this component of the SWOT
examination demonstrates various open doors that can sensibly bolster IBM's long haul business
development destinations.
4.Threats
In this component of the SWOT investigation, the outer vital elements that decline or confine
IBM's development are resolved. These components debilitate the organization as far as potential
disappointment in system execution. They additionally make it troublesome for the business to
expand incomes and benefits in the data innovation industry. IBM needs to actualize measures to
shield its business from the accompanying dangers in the outer condition:
i. Impersonation of items
ii. Rivalry
iii. Cybercrime

IBM overview and analysis 28
Impersonation of items is an issue that faces IBM. This danger depends on the shortcoming of
item imitability, which is because of the organization's emphasis on cost authority with
insignificant item uniqueness. Then again, the danger of rivalry is huge as a result of the level of
separation and forcefulness of firms in the data innovation industry (Dowling, 2016). Likewise,
cybercrime is a noteworthy danger, particularly in light of the organization's broad online
activities including servers for its customers. For instance, cloud stage items uncover the firm
and its customer base to potential digital assaults and related dangers. In this component of the
SWOT investigation of IBM, dangers are a noteworthy worry that could cut down the business
and its innovative foundation
Figure 4: porter 5 analysis of IBM

IBM overview and analysis 29
7.STRATEGY
A. Strategic type
1.corporate level strategy
Corporate-level strategies characterizes an arrangement to hit a particular target expected to
accomplish business objectives. Techniques have a tendency to be long haul in nature, yet take
into consideration dynamic modifications, in light of vulnerability and changing economic
situations. Corporate-level systems are actualized all through the whole authoritative structure.
Distinctive systems may be at the same time utilized yet set at various need levels. Corporate
level methodologies introduce the "big picture" of the association. These may incorporate
choosing in which item or administration markets to contend. They may characterize the
geographic limits of the IBM's activities. The firm may likewise manage dispensing capital,
staffing, and different assets. The corporate level methodology may manage choices about the
including new items or administrations. The corporate level technique may shape whether to
seek head-on with different organizations Or then again it might set up banding together with the
elements. corporate level strategy has subset strategies that will be essential to IBM
Growth Strategy- Development systems take a gander at strategies to get more incomes from the
offers of items or merchandise. Industry pioneers regularly discuss vertical and flat techniques when
alluding to development systems (Wagner & Hollenbeck, 2014).
Diversification Strategy- Broadening procedure takes a gander at the organization's items and
administrations and after that builds up a technique for fruitful promoting and deals. Two
primary enhancement procedures exist: a solitary business system and a predominant business
expansion methodology. The single-business procedure restricts the quantity of items or

IBM overview and analysis 30
administrations to a couple, if not one. An organization utilizing this methodology looks to be
the pioneer in the specialty (Hill, Jones, & Schilling, 2014).
Stability Strategy- It is workable for an organization to achieve its ideal piece of the overall
industry objectives. As opposed to scale up, organization pioneers may pick a strength technique
that takes the current accomplishment under existing stages to keep up piece of the pie.
Strategies incorporate making forms more cost effective through robotization, cutting costs
where conceivable and arranging better expenses on materials or circulation edges (Huang,
Dyerson, Wu & Harindranath, 2015).
2.Business level strategies
i. Cost leadership-this strategy’s is purely derived for the purpose of employing strategies
of a low-cost production which will reflect effective pricing on the final products. It’s
mainly focused in gaining a competitive advantage over its rivals (West, Ford &
Ibrahim,2015)
ii. Differentiation- value is given to clients through one of a kind highlights and qualities of
an association's items as opposed to by the least cost. This is done through excellent,
highlights, high client benefit, fast item development, progressed innovative highlights,
picture administration, and so on (Giannakis, & Louis, 2016).
iii. Integrated Low Cost/Differentiation- This business-level technique joins minimal
effort with separation. This model is ending up progressively prominent in worldwide
markets since it permits adaptability in both cost and included esteem
iv. Focused Low Cost- it is similar cost leadership; the organization is endeavoring to beat
contender's costs. Be that as it may, around here level system, the business is centering its
promoting endeavors particularly. This is most ordinarily observed when an organization

IBM overview and analysis 31
targets government contracts. It needs to beat contenders estimating yet isn't endeavoring
to beat the general purchaser valuing (Kozlenkova, Samaha, & Palmatier,2014).
B. strategic group map
IBM has a strong strategic group mapping as evident in the figure below, this is due to the fact
that it has had efficient strategies backed with many resources that has assisted it adapting to the
various changes in the environment (Irimia & Gottschling 2016). This strategists such as
mergers and acquisitions of smaller firms with potential products and services (Weiblen, &
Chesbrough, 2015).Moreover the large amounts of funding done for innovation and research has
assisted the firm in dominating the premium market by providing quality products and service
that have earned that firm a constant increase in annual revenues according to Smarter Structure
(2015).
Figure 5: Strategic map solution capability

IBM overview and analysis 32
Figur
e 6: Strategic map brand equity
8. STRATEGIC ALTERNATIVE AND RECOMMENDATIONS
A. strategic alternatives
Acquisition and mergers-since IBM has the manpower and the strong financial resources, it
would be efficient for the firm to identify potential firms that are coming up with new and
promising technology solutions that would change business process in the future, such as
Artificial intelligence and new energy solutions (Lebedev,et al,2015).
Focus differentiation -it takes a step further from the differentiation strategy, IBM will identify
a product that has the potential of a new market niche after adding a specific value and solutions
to it, this could assist the firm in dominating a new a market (Hatch, 2018).

IBM overview and analysis 33
B. Recommendations
All the two strategic alternatives will be suitable for the growth and development of IBM and
achieving it goals and objectives while staying on track in perspective of the mission and values.
acquisition and mergers will best be suited in the hands of the top management in conducting
research and giving a go ahead since they represent the interest of the shareholders and the firm
in genera (Angwin, & Meadows,2015) Policies and guideline of implementing focus
differentiation can be formed either by the top management or the functional managers.
However, the functional manager will be more suitable since he or she experienced and skilled in
their focus area
9.STRATEGY IMPLEMENTATION
Alignment of initiatives- A decent method for doing this is to make a key esteem estimation
device for existing and new activities. Activities ought to be investigated against their vital
esteem and the effect to the association (Lasserre, 2017)
Align budgets & performance- Ideally, IBM's capital spending plans are decentralized, so
every division can both designate and deal with the financial plans to convey the division's key
activities. Hierarchical execution ought to be firmly adjusted to the procedure. Execution
measures ought to be put against key objectives over the association and every division and staff
part. All staff will have work works that will affect the system. Most staff will have an affect
over a progression of key objectives (eg. money related, client benefit, item). Guarantee workers
know about their part and impact on system conveyance and execution (Chang, 2016)

IBM overview and analysis 34
Structure follows strategy- A transformational procedure may require a change to structure.
Does the structure of your association enable methodology to course crosswise over and down
the association in a way that seriously and proficiently conveys the technique? Associations that
attempt and power another methodology into an outdated structure will discover their technique
usage in the end achieves a stop (Furrer, 2016).
Engaging Staff-the purpose of this stage is to engage and dialoged with the employees who are
going to be part of the implementation, they are to be informed and clarifications and suggestion
are considered
Monitor and adapt-the strategy is now initiated and put to works, monitoring of the strategy is
essential at an early stage for the purpose of making changes in ares that have issue in
implementation
10. EVALUATION AND CONTROL
The assessment venture of a strategic implementations centers around dissecting quantitative and
subjective measurements related to the usage and system. Quantifiable measurements are those
to which numbers can be connected, for example, the quantities of offers leads got, clients came
to and dollar sums accomplished (Fuente et al 2016). Subjective elements incorporate measures
of consumer loyalty. Assessing the promoting plan implies taking a gander at the information
and inspecting regardless of whether the organization accomplished its procedure goals from the
usage stage (Barney, 2014). In the event that it did, the means can be imitated for future
achievement. If not, changes can be made to enhance execution and results.

IBM overview and analysis 35
Controls are vital for the assessment stage. Controls set up amid the production of the advertising
design give benchmarks to survey how well the arrangement achieved its objectives. Controls
resemble objectives; they give the organization a comment for while sanctioning the
arrangement. Controls may incorporate measures, for example, the showcasing spending plans
and piece of the pie.
11. CONCLUSION
IBM is one of the most globally known IT brands in the world, it has made essential innovations
that has seen the evolution of technology and its adoptions at a fast rate increasing globalization.
IBM has been on the market for over a century and it has managed to stay relevant and strong n
the Market share up to now. It has made enormous contributions and strategic innovations that
have shaped the IT world and globalization. innovations like the think pad 750 that had a major
impact in space explorations, the environmental management software developed by IBM in
1999 for the purpose of protecting and monitoring environmental changes, development of the
IBM system 390 which has paved way for innovation and advancement of powerful computing
power (Johnson, 2016). Simply IBM has been the burning candle for technology innovations
which has also revolutionized businesses and increased globalization. The firm has also
sustained a competitive advantage over a century and still remain a global tech giant stamping its
presence in over 160 nations (Davcik,& Sharma, 2016). It external and internal environment has
been analyzed in the paper. moreover, a SWOT analysis has been conducted which has been
essential in defining the various strategies available and in use by IBM which has also been used
to determining the strategic group map. Alternative strategies have been illustrating and
implanted and have been evaluated to be efficient to the success and development of IBM
( Frynas, & Mellahi (2015)

IBM overview and analysis 36

IBM overview and analysis 37
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