answer:- History and development and growth of IBM company over
times.
In early 1970s IBM was the largest
manufactures of computer in the world. T.v Larson took over as CEO of IBM
from tom Watson, Jr, in 1971 and become the head of the company. It was able to acheive rapid growth and market share due to the sale of it's 360 mainframe
computer model. The 360 models was later improved through the development of
the 370- mainframe model. IN mid 1970s , IBM begin to face high
competition from the small companies that were able to produce cheap computers qualities
were either equal to or superior to its models. Following the technological
advancement that led to the reduction of the lifespan to mainframe computer.
IBM changed its strategy from leasing to selling computers. Additionally it
developed new computer models such as 400 to compete with lower cost minicomputers.
Under learsons control and then under the control of Frank Cary who become
CEO when learson retired in 1973, IBM continued to enjoy its domination of the
mainframe market. By 1980 IBM had a market value of $26billion four time it's
sizes in 1971.
By 1991
high competition led to significant reduction in computer prices . moreover IBM
was not able to Develop new product in time. Consequently it market share
reduced drastically. The management attempts to restructure the firm was not successful
since it continued to market losses.
The company
returned to profitability in 2000. The last three years , the company has been
making at least 10 billion in net profit (IBM) . Howerver it generates over
60% of its revenue from services and software’s rather than the sales of
computers hardware, also IBM's continued domination of the mainframe market
produced record increases in revenues and profits every year but its
performance masked some major problems that were developing during the
1970s and 1980s.
Changes in mainframe
technology also caused a change in IBM's strategy during the 1970s. As a result
of technological innovations, particularly the plunging costs of integrated
circuits, the life span of a main- frame computer-the time it could be used
until it was technologically outdated-was shortening rapidly and development
costs were increasing. of the personal computer. The personal computer was
developed in 1977 by Steven Jobs and Stephen Wozniak who founded Apple Computer
at 1980 Apple's sales had grown to $117 million. Once again, IBM stood by and
watched as a new market segment was created.
2 Answer: the
company ( IBM ) internal strength and weakness .
Strengths:
i) IBM was able to develop
high quality computers in 1970s and 1980s, there by gaining the largest market
share in the industry.
ii) IBM had a dedicated and
high performing sales forces. This enabled is to increase its sales and to earn
high profit from its mainframe computers.
iii) IBM was able to
offers excellent services to its clients, thereby enchaining customers
loyalty.
iv) IBM had adequate capital,
which enabled it to develop new products and to offer high quality services.
Weaknes:
i) IBM did not focus
on market research in order to identity customer needs. Consequently, it was
not able to develop new product in time to satisfy emerging market
needs.
ii) IBM research and
development initiative focused on improving its existings product rather than
developing new ones. Thus it always developed new product to compete with other
rather than to satisfy customer needs.
Consequently the company lost its competitiveness
in the hardware segment of the market.
iii) IBM lost its competitive
due to its inability to reduce its operating cost. Finally the company had an undesirable
organizational culture, which discouraged innovation and cooperation among its
technical teams members.
3. external environment surrounding
IBM
IBM is helping
customers to become more energy efficient, implement new ways to source,
manufacture and distribute goods and services in a more sustainable manner,
enable safe and renewable sources of energy and manage resources at a macro level,
transforming entire industries’ has put a great deal of effort into
branding itself as a green, sustainable company. On
their website, they have an entire section named “Let's Build a Smarter Planet”
where they explore how their technology is actively improving our ecosystem and
environment
(https://www.ibm.com/ibm/environment/)
4.IBM's business model
and replace with one of your own that you would think
ANSWER :-
IBM Founded in the year 1911,
It is multinational IT Company based in America. The business model
of IBM or international Business Machines Corporation revolves around
Cloud computing, Artificial intelligence, Computer hardware, and Computer software
business model is based around providing software that allows large corporations
to connect their disparate software system and improve their IT performance.
The IBM has been providing a lot of
services of the clients which make it reliable and dependable at the same
time. ever since its existence the company has been widely adopted
in difference countries and has about 175 countries different branches all over
the world.
There are also about 400,000 employees
which are currently working in the company.
IBM is dedicated to innovate and develop in
the fields of mainframe, nanotechnology, personal computers to digital data
management, virtualization and cloud services.
Hence the company’s value
propositions also revolves around these factors. Key parts of IBM’s value
proposition are-
- Software
to Connect Applications
- Hardware
to deliver specialized business solutions
- Services
to assist companies to deliver IT more efficiently
- Artificial
Intelligence
Channelization of IBM
business model occurs through direct sales and advertising.also it involved
in targeting large corporations as their customer segments.
Key Activities of IBM Business Model are
- Research and Developments
-Operations
The IBM Company is also using such services
such as strategic outsourcing, integrated technology, support, Cloud, and other
services as well.IBM is also offering some of the services to the people who
need some software assistance as well. There are some operating systems which
are provided to the people along with middleware in the best way.
Some of the other key software of IBM are
WebSphere
Rational
Information Management
Tivoli
Mobile
Social Workforce
link-https://www.marketing91.com/business-model/
5, answer-
IBM had suffered in so many problems at the mid of it's journey, there were so many companies compete with their activities but they're unsuccessful major problems that were developing during the 1970s and 1980s. The first major problem, which Cary had recognized as early as 1970, was that the mainframe computer market was starting to mature. Almost every large U.S. business company possessed a mainframe computer, as had most scientific and higher education institutions. IBM also had saturated then international market. As a result, IBM's rate of growth was falling even though its revenues were increasing, they were increasing at a decreasing rate. In the mature mainframe market, competition was increasing from companies that were trying to find ways to attract IBM's customers and share in the huge revenues in the mainframe computer market. Its major competitors at the time were Amdahl, Honeywell, Burroughs, Univac, NCR, and Control Data.Many of these companies began offering IBM's customers mainframe systems at a lower cost than expensive IBM systems. Initialy, IBM faced competition only from companies selling IBM-compatiblep peripheral equipment such as disk drives, storages devices and printers at lower prices than IBM's products,then the nature of competition was changing IBM's decided to competitors began selling cheaper and slowly IBM balance thier market
