Wednesday, October 9, 2019
The Evolution of IBM Case Study Example | Topics and Well Written Essays - 1000 words
The Evolution of IBM - Case Study Example The competencies thus shifted away from technical quality and towards knowledge, experience and personnel expertise (Carlson). The emphases was on focus, speed, customers, teamwork and execution. The company was centralized, global core processes were standardized, metrics were redesigned, and the focus was on the marketplace and the customer (Carlson). How would you describe Louis Gerstnerââ¬â¢s implementation style of IBMââ¬â¢s competitive strategy in the early 1990s? The implementation style of IBMââ¬â¢s corporate strategy was focused upon streamlining the operation and cutting costs. IBM cut its workforce to a low of 220,000 employees in 1994, and used other cost reductions for the company. This was half of the competitive strategy. The other half was that Gerstner recognized that the company should continue to provide integrated solutions. The previous idea was that IBM would divide into separate companies that emphasized separate competencies. The idea was that IBM could bundle and customize solutions for customers, packaging hardware, software and services together in a customized bundle (Carlson). Because IBM was centered around an idea, as opposed to a certain technology, it was able to adapt to changing business climates that occur when new technologies arise, and the magazine The Economist states that companies who are rooted in a philosophy, not a product, are the companies who will be around in 100 years (ââ¬Å"The Test of Time,â⠬ 2011). ... Because IBM was centered around an idea, as opposed to a certain technology, it was able to adapt to changing business climates that occur when new technologies arise, and the magazine The Economist states that companies who are rooted in a philosophy, not a product, are the companies who will be around in 100 years (ââ¬Å"The Test of Time,â⬠2011). The company also dropped low margin industries, such as personal printers and hard drives. Its focus was on high profit margin businesses, with a focus on becoming a technology integrator. It also acquired the management consulting and technology services arm of Pricewaterhouse Cooper, which was a boon for its services division (Carlson). What are the implications of the globally integrated enterprise model for marketing managers in the Australia and New Zealand subsidiary of IBM? The implications are that, even though the New Zealand and Australian marketing managers are working for a subsidiary of IBM, they will have to adhere to the corporate ethos of IBM. Moreover, they will be controlled by the centralized unit of IBM, and the products and services that they will be producing will be products and services which are approved by centralized management at IBM. The values, processes and shared services will be those of IBM. It appears that IBM has abandoned the strategy of having parents and children in the corporate sense, and more that each of the offices around the world are a part of IBM, and not independent. Discuss the elements of the marketing strategy that makes IBM successful in todayââ¬â¢s global marketplace. One of the important elements of the marketing strategy is that IBM integrates production and value delivery worldwide, while depending upon state borders less
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