International Business Machine Essay

International Business Machines (IBM)

Description of the Company

IBM is an international conglomerate that commenced its activities in 1911, but its origin dates back to 890, during the apex of the industrial revolution. Initially, the company was known as the Computing Recording Company, but in 1924, it changed its name to International Business Machines. The company operates in the computer technology sector, even though it has interests in other areas such as the finance segments.

Mission Statement

The main activity of IBM is to provide solutions to its clients by adopting innovative information technology. The company’s clients include institutions such as the educational organizations, defense and government, special businesses and individual

Opportunities

1.1 Electronic Business (E-Business)

The use of the internet has grown over the last decade and businesses have used it as an avenue for distributing its products. It has provided a way of conducting business electronically using new ideas. The company can market its products and operations through the internet, therefore, increasing its presence in the ever competitive market space. Furthermore, the internet makes it easy for companies to trade with one another devoid of any physical meeting.

1.2 Tactical Coalitions

IBM has partnered with Dell, a global leader in the manufacture of computers. This is an opportunity for IBM to acquire new skills and expertise from DELL and also become stronger.

1.3 Corporate Image

Though the company manufactures a lot of technology products such as servers, network devices, and supercomputers, when the name IB is mentioned, what comes to people’s minds is computers. The company should consider changing this misconception by diversifying its products. Advertising should be done properly to market other products to make the public aware of IBM’s product

IBM develops customized solutions that enhances business operations and enables Information technology infrastructure to support business processes. Moreover, all the products developed by the company can connect to the internet.

2. Weaknesses

2.1. The new management is focused on the formation of an interlinked and decentralized firm. In this regard, it becomes difficult to counter the competition from mean rivals.

2.2. The company also launches its products in the market without any prior information. This can be seen as a weakness because it is prudent to make the consumers aware of the evolution of the company’s products. Clients need to know what they should expect from IBM.

2.3. One of the challenges information technology companies face is that its products have to be updated regularly. For instance, a brand new computer will be a market leader for a span of four to six months. For this reason, companies need to research for new technologies to incorporate in their product line. IBM takes a lot of time on research, which consumes a lot of resources. This leads to higher prices than that offered by other technology companies, hence IBM’s sales