Ibm Challenge to America Case Analysis
IBM Case Analysis
“What happened to IBM, the symbol of American supremacy?” -Challenge to America video, 1993
Problem Statement
IBM needs to grow revenue and stay competitive in the dynamically changing computer marketplace of the 1990’s by maintaining technological leadership and accepting the organizational transformation which needs to be undertaken for them to excel. IBM needs to recapture their previously held powerful position in the personal computer and microprocessor markets and regain value in the company which will increase its stock value and competitive advantage in the marketplace.
Problem Analysis
In 1993 IBM reported a $5.6bn loss for the fourth quarter of 1992 ending a yearly deficit of $4.97bn; which at the time was the biggest annual loss in American corporate history. The fiscal loss could be explained in part to the ongoing aftermath of the severe 1990-91 recession that adversely affected the entire computer industry, but clearly IBM was no longer the colossal success it had been throughout most of its history. Primary to its listless growth was a fundamental change in the environment of the computer industry, which was the persistently accelerating rate of technological breakthrough in the world of data processing and IBM’s slow response to this change. IBM’s personal computing business technological environment was changing rapidly as the underlying shift in the computer field was from mainframe computing dominance toward personal computing. IBM’s mainstay business of mainframe computing became less important to customers who were selecting new compact personal computers with powerful microprocessors capable of million of operations per second which could be applied to a significantly broadened range of tasks.
The external environment for IBM was unstable due to rapid and frequent changes in technology. In the personal computer business IBM had become an outsider in a domain which they once controlled. New
“What happened to IBM, the symbol of American supremacy?” -Challenge to America video, 1993
Problem Statement
IBM needs to grow revenue and stay competitive in the dynamically changing computer marketplace of the 1990’s by maintaining technological leadership and accepting the organizational transformation which needs to be undertaken for them to excel. IBM needs to recapture their previously held powerful position in the personal computer and microprocessor markets and regain value in the company which will increase its stock value and competitive advantage in the marketplace.
Problem Analysis
In 1993 IBM reported a $5.6bn loss for the fourth quarter of 1992 ending a yearly deficit of $4.97bn; which at the time was the biggest annual loss in American corporate history. The fiscal loss could be explained in part to the ongoing aftermath of the severe 1990-91 recession that adversely affected the entire computer industry, but clearly IBM was no longer the colossal success it had been throughout most of its history. Primary to its listless growth was a fundamental change in the environment of the computer industry, which was the persistently accelerating rate of technological breakthrough in the world of data processing and IBM’s slow response to this change. IBM’s personal computing business technological environment was changing rapidly as the underlying shift in the computer field was from mainframe computing dominance toward personal computing. IBM’s mainstay business of mainframe computing became less important to customers who were selecting new compact personal computers with powerful microprocessors capable of million of operations per second which could be applied to a significantly broadened range of tasks.
The external environment for IBM was unstable due to rapid and frequent changes in technology. In the personal computer business IBM had become an outsider in a domain which they once controlled. New