Comprehensive Business Marketing Report: IBM and Cloud Computing

This report provides a detailed analysis of IBM's business marketing strategies, focusing on its cloud computing services within the Australian market. It begins with an executive summary and an introduction, followed by a background of IBM and its cloud computing products. The report then delves into a situational analysis, including PESTLE and Five Forces analyses to understand the market dynamics. It examines IBM's market segmentation approaches, relationship management, and buyer behavior. The report highlights the benefits of cloud computing, such as flexibility and efficiency, and concludes with a summary of key findings and references. The analysis covers various aspects of IBM's operations, from its historical context to its current market position and future prospects in the cloud computing sector.

RUNNING HEAD: Business Marketing
Business Marketing

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Executive summary
This report has covered various aspects related to the multinational company IBM which is
having a strong customer base. This report has provided information related to the history of
IBM and the products offered by it. It has also covered the situational analysis of IBM for the
analysis of the different factors of the business environment on the performance of IBM.
Market segmentation done by IBM for targeting the customers is also covered in this report
along with the buyer behavior and factors affecting the behavior of buyers.

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Table of Contents
Introduction................................................................................................................................3
Background of the product and company..................................................................................4
Product details............................................................................................................................6
Analysis of the relevant market situation...................................................................................8
Market analysis.......................................................................................................................8
Macro analysis: Pestle analysis..............................................................................................9
Micro analysis: Five forces analysis.....................................................................................11
Market Segmentation...............................................................................................................13
Relationship management analysis..........................................................................................14
Buyer behavior.........................................................................................................................15
Conclusion................................................................................................................................16
References................................................................................................................................17

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Introduction
This Business marketing report has been prepared which has covered different aspects of the
business environment of a Business to Business Company operating in Australia. IBM is a
Business to Business Company which is offering quality services to the customers. This
report will discuss the background of the products offered by the company and of the
company. Analysis of the market will be done by gathering relevant data for identifying the
impact of these aspects on the business.

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Background of the product and company
The company selected for this report is IBM which is an American global technology and
innovation company. Its headquarter is located in Armonk, New York, United States. It was
founded by Charles Ranlett Flint in the year 1911. It is operating in more than 177 countries
all around the globe. IBM is operating in the Cloud Computing and cognitive computing
industry. It is having a strong employee base of more than 3,80,000 employees according to
the data collected in the year 2016. IBM is offering products which belong to different
categories and these categories include cloud computing, commerce, cognitive computing,
data and analytics, Internet of Things, IT infrastructure, mobile, and security. IBM has set a
mission which has guided the efforts of IBM. IBM is fulfilling its responsibility towards the
different stakeholders of the society. IBM is focusing on improving the quality of the
products offered for enhancing the satisfaction level of the customers of the business (IBM,
2017).
The mission of IBM is to lead the industry by offering innovative products by
constantly engaging in the creation, invention, development, and manufacturing of the
advanced information technologies which includes software, storage systems,
microelectronics and computer systems. A wide range of products, services, and solutions are
being offered by IBM to its customers. These products, services, and solutions are being
offered to the companies operating in different industries including banking, aviation, energy
and utilities, healthcare, federal, gaming, retail, media and entertainment and telecom
industries. IBM has contributed to the local economy of Australia. The expertise and
innovations offered by IBM have helped the economy of Australia for competing with the
world economy. IBM has promoted digital transformation by utilizing the natural resources

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available for sustainable cities which is a/ national agenda for the government of Australia
(IBM, 2017).
Figure 1:IBM
Source: (IBM, 2017)

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Product details
The product which has been selected for this report is cloud computing. IBM is offering
cloud computing services to the customers. Cloud computing is a service which is offered
over the internet. Cloud computing can be explained as the practice in which network of
remote servers are used which are hosted on the internet for storing, managing and processing
the data. These services are being offered on a pay-for-use basis. Different models of cloud
computing are being offered by IBM which includes SaaS, PaaS, IaaS, Public Cloud, Hybrid
Cloud and Private Cloud (Wyld, 2010). Features of cloud computing are listed below:
1. Elastic resources. Resource pooling is possible with the use of cloud computing
2. Self-service or on-demand service (IBM, 2017).
3. Service measurement is possible so payment can be done for what is used by the
customer (Chabrow, 2011)
4. It provides a broad network access. Cloud computing uses the internet as a base so it
promotes access to the data anytime and anywhere as per the need of the customer
(Sallehudin, et. al., 2015).
There are various benefits associated with the use of cloud computing which contributes to
the performance and success of the business. These benefits are stated below:
1. One of the most important benefits of cloud computing is flexibility. Users can use
this service offered by IBM according to their requirements and needs. Customisation
of the cloud computing is possible and this can be accessed anytime and anywhere as
these services are based on internet (IBM, 2017).
2. Efficiency is another benefit of cloud computing. Marketing can be done in less time
without infrastructure and maintenance cost.

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3. A competitive advantage is provided by cloud computing as this service is innovative
technology. Cloud computing is a product is an effective approach for strategic value
(Rajurkar, 2016).
4. Cloud computing provides backup service which saves the time of the business.
5. Better and easy share of the data is possible (Zhang & Chen, 2010).

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Analysis of the relevant market situation
Market analysis
IBM is performing well at the global level and providing quality services to the huge number
of customers all around the globe. IBM is competing in a competitive business environment
and for coping with this increased competition in the business environment, it has set a
mission. This mission statement of IBM is guiding the efforts of the IBM in the right
direction. There has been a rise in the market share of IBM of cloud space. IBM has taken
initiatives for improving the position and for boosting the cloud offerings (Panettieri, 2016).
In January 2016, it was analyzed that IBM holds 7 % public cloud market share in the
Industry in Australia. Estimates have been made that the market share held by IBM will
increase in the future. In the year 2016, IBM has performed better than the expected
performance in the fourth quarter of 2016. An increasing trend has been identified in the
industry of Australia due to the increase in the use of Cloud computing services (Gagliordi,
2017).

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Macro analysis: Pestle analysis
Factors Description
Political The manner in which IBM is conducting its
operations may get affected due to the
political factors of Australia. Various
opportunities have been provided by the
government of Australia to IBM. These
opportunities include step towards
digitalization, support from the political
aspects to the e-technologies and
enhancement in the efforts for the protection
of data (Rowland, 2017).
Economic Economic conditions can affect the
performance IBM in positive as well as
negative manner. The economy of Australia
is stable which provides an opportunity for
the growth of IBM. Rapid growth is expected
for the developing markets. This can be used
as an opportunity. Another opportunity
provided by the economy is an increase in the
demand for the online services or products.
Social Social aspects can provide opportunity as
well as a threat to IBM. Increase in the
purchasing capacity of the business acts as an

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opportunity. There has been a rise in the use
of customer service for analysis of the quality
of the product and quality of business.
Increase in the use of online products is the
current trend (Rowland, 2017).
Technological Technological factors can affect the
performance of the IBM. There has been a
rise in the use of cybercrimes which can be a
threat or an opportunity for IBM.
Technological integration taking place in the
different industries and market also acted as a
threat or opportunity.
Legal The legal system of Australia and other
economies can affect the performance of
IBM. There has been an increase in the
protection of intellectual property. Expansion
of the e-waste regulation can act as a threat or
opportunity for IBM (Rowland, 2017).
Environmental There are various opportunities available for
IBM. The rise in the availability of renewable
resources and recycling programs provide an
opportunity to IBM. Another opportunity is
related to the rise in the interest of business
for the programs related to business
sustainability.

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Micro analysis: Five forces analysis
Force Description
Power of suppliers This acts as a moderate force. Supply of the
raw material is high and individual suppliers
are of a moderate size which has resulted in
making this force moderate (Rowland, 2017).
Power of Buyers This acts as a moderate force. This force is
considered moderate due to a huge number of
customers available, size of every order is
moderate and cost of changing is moderate.
Competitive rivalry This acts as a strong force. Reasons behind
this are due to the moderate degree of
differentiation, high level of aggressiveness
of the firms and high potential of imitation
(Rowland, 2017).
Threat of the substitutes This acts as a moderate force. Reasons
behind this include cost of changing is
moderate, moderate level in product
differentiation and availability of substitutes
is moderate.
Threat of new entrants This acts as a moderate force. Reasons
behind this are a huge cost for the entry in the
industry, the moderate cost for changing and
potential for imitation is high (Rowland,