Ibm Case Study
A Case Study on the Coming of a
Globally Integrated Enterprise
Introduction
Framed by the year 2009, the International Business Machines Corporation (hereafter IBM) aims at becoming a ‘globally-integrated enterprise’ and is therefore facing the act of balancing between being deeply connected (in order to provide value for customers and society) and yet above the fray (to avoid divisive controversies). Over its nearly 100 year history, IBM moved from international (exporting form the U.S.) to multi-national (with subsidiaries in many countries) to global. At the end of the 20st century, tumbling profits from mainframe and PC businesses initiated a major competitive repositioning (i.e., strategic renewal) in which IBM transformed from primarily a manufacturer of hardware into a provider of software, services, and systems. IBM’s initial international expansion was rationalized by access to new customers to capitalize on its core competencies. Comparative advantages and an ‘open’ approach towards knowledge, skills and innovation initiated IBM’s focus on becoming a global integrated enterprise to enhance competitive advantage in every market they compete. However in early 2008, comments were solicited from large groups of employees and managers worldwide about the implications of IBM becoming a global integrated enterprise. A review of IBM’s business practice should reveal those implications and thereby identify IBM’s next steps in coming globally integrated.
1. What are the internal strengths of IBM and what are their weaknesses?
The fact that IBM was one of the few computer manufacturers to survive more than 25 years and is heading for its 100th anniversary reveals its capable to create and maintain competitive advantages. IBM has proven to be agile and adaptive by transforming from a hardware to a technology solutions company and thereby obtaining the reputation of a leader in machine-independent “on demand” computing.
A first important internal strength
Globally Integrated Enterprise
Introduction
Framed by the year 2009, the International Business Machines Corporation (hereafter IBM) aims at becoming a ‘globally-integrated enterprise’ and is therefore facing the act of balancing between being deeply connected (in order to provide value for customers and society) and yet above the fray (to avoid divisive controversies). Over its nearly 100 year history, IBM moved from international (exporting form the U.S.) to multi-national (with subsidiaries in many countries) to global. At the end of the 20st century, tumbling profits from mainframe and PC businesses initiated a major competitive repositioning (i.e., strategic renewal) in which IBM transformed from primarily a manufacturer of hardware into a provider of software, services, and systems. IBM’s initial international expansion was rationalized by access to new customers to capitalize on its core competencies. Comparative advantages and an ‘open’ approach towards knowledge, skills and innovation initiated IBM’s focus on becoming a global integrated enterprise to enhance competitive advantage in every market they compete. However in early 2008, comments were solicited from large groups of employees and managers worldwide about the implications of IBM becoming a global integrated enterprise. A review of IBM’s business practice should reveal those implications and thereby identify IBM’s next steps in coming globally integrated.
1. What are the internal strengths of IBM and what are their weaknesses?
The fact that IBM was one of the few computer manufacturers to survive more than 25 years and is heading for its 100th anniversary reveals its capable to create and maintain competitive advantages. IBM has proven to be agile and adaptive by transforming from a hardware to a technology solutions company and thereby obtaining the reputation of a leader in machine-independent “on demand” computing.
A first important internal strength
References: Goldsea (2011). Asian American: John C.Iwata. Retrieved on 08 October 2011, on http://goldsea.com/Text/index.php?id=3831. Kanter, R.M. (2008). IBM in the 21st Century: The Coming Out of the Globally Integrated Enterprise. Boston, MA: Harvard Business School, Case Study. IBM (2006). IBM Global Briefing: Global Integration. Retrieved on October 6, 2011 from http://www.ibm.com/investor/events/global0606/summaries/Global_Integration.pdf. IBM (2009). The R-O-I of globally integrated operations. Somers, NY, USA: IBM Institute for Business Value. Peng, M. and Meyer, K. (2011). International Business. London: South-Western Cengage Learning, pp. 457-460. The Economist (1998). Blue is the color. Retrieved on October 7, 2011 on http://www.economist.com/node/133190 The Economist (2007). IBM and Globalization: Hungry Tiger, dancing elephant. Retrieved on October 7, 2011 on http://www.economist.com/node/8956676 Thomas, D.A. (2004). Diversity as Strategy. Boston, USA: Harvard Business Review.