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Case Analysis Of IBM India

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Introduction IBM India is known globally for its services in Information Technology. Whereas most of the IT Company outsources for IT services, IBM has been there to offer IT solutions to the IT companies and other types of companies that are in need of IT services. In 2009, IBM India saw the expanding Japanese IT market. Just like many other IT companies in the world, it decided to seize the opportunity in order to increase the market for its IT services (Chatterje and Chaudhuri 2009, p1). It, therefore, strategically decided to outsource the Information Technology market in other countries. IBM India identified Japan as one of the potential region where it could have a competitive edge. This resulted in setting up of new offices in Japan …show more content…

The company had a head count of 330.000 all over the world in 2005 where it managed to make 7990 million as net profit for all its businesses all over the world. In 2009, IBM India realized that if it were to be successful, it needed to exercise some flexibility in their operations and strategies. The main reason for IBM India was outsourcing was to remain stable and expand its market to other countries. During this period of market, outsourcing, IBM was determined to grasp the opportunities that were being offered by the Japanese companies. Japanese companies were outsourcing IT services from the other countries as they could not sufficiently serve the needs of their countries. Japan offered a high potential market for Information technology services and thus IBM decided to establish an office in the country in order to scale its presence and help in marketing of its services. Despite this IBM faced a tough competition from the presence of more than 52 companies that were establishing themselves or were already established in the Japanese market (Chatterje and Chaudhuri 2009, …show more content…

This is because the company had already established a brand all over the world and the decision came at the time when the opportunities were readily available. The IBM Company used the opportunity to establish itself as a sole competitor in the Japanese market (Hax and Wilde, 2003, p2). The company was likely to beat its competitor as it had been known for its dominance and competence in providing the IT solutions; and its adoption of cost leadership and differentiation strategies. The move was thus an attempt to venture into the countries where the company had never ventured before; and provide new customers with a new

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