Case Study
Reported By: ALARCON, Lyanne V. CRUZIN, Richelle Ann DIA, Minette SACE, Carla
I. Introduction
IBM was founded in 1888 as Herman Hollerith and the Tabulating Machine. It was incorporated in 1911 as “Computing-Tabulating Recording Co.” The company later changed its name to International Business Machines (IBM) Corporation in 1924 after becoming a Fortune 500 Company. Also known as “Big Blue,” IBM has won several accolades. It is known to have more patents than any other American technology company. The company operates in 170 countries and has 60% of its revenues coming outside of US.
IBM divested its personal computers and hard disk drives businesses and concentrated on becoming service-oriented architecture (SOA). The company is structurally organized in the following segments: systems and financing, hardware, software and services. IBM’s key competitors in the industry are Microsoft, HP, and EDS.
II. Time Context
In 2005, IBM’s Total Revenue declined by $5.1 Billion. It can be attributed to the change the company is heading into, and the trend that its hardware business is also on the decline. Having lost 8.3% from 2004 and a further 7.6% in 2006.
III. Viewpoint
CEO and President, Samuel J. Palmisano
IV. Problem Definition
How can IBM increase their revenues and maintain its competitive advantage?
IV.1 Objectives
IV.1.1 To drive revenue growth through new markets, new offerings, and new products both developed and acquired
IV.1.2To develop and encourage innovation and ideas that focus on new high-profit, value-added business and services
V. Areas of Consideration
V.1 Strengths
V.1.1 Brand Name (IBM is one of the most recognizable Computer Brands in the world)
V.1.2 Diversification (Software, hardware, financing and servicing)
V.1.3 Innovation Jam Capability (With this capability, the company doesn’t only rely its ideas from its top