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Ibm Case Study

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1. What factors led to IBM’s problems? The main causes of failure of IBM in late 1990’s are as follows: • The management focuses on short-term results and does not pays enough attention for developing strategic business model focused on futuristic prospects. • Emphasize on businesses which generate sustained profits rather than going for high growth businesses (Services and Software development). • Lack of market insights for emerging markets (Technology and Technical Service Businesses). • Though being a market leader in innovation but having a poor track record for commercializing innovations. 2. What actions did Gerstner take when he assumed the role of CEO in April 1993? Gerstner took charge as CEO of IBM in April 1993. The main reason …show more content…

6. What made IBM a “great company” during the 1990s and 1970s? Under the leadership of Watson Jr. the company develop the System/360 computers –the first family of product based on integrated semiconductor chip offering interchangeability of components. This radical innovation has transformed the IT industries to a decade to come thus promoting the company as one of the dominant player in the industry. 7. Can the company became a great company again, and what is your definition or greatness? Yes, the company still has the potential to be a market leader in the field of IT industries as can be seen by the companies initiative by creating a department for new Emerging Business Opportunities (EBO’s) wherein the company under the corporate guidance of Thomson and Corporate Strategy group lead by Harreld and Corporate Technology and Manufacturing group lead by Donofrio have developed and marketed new EBO’s in the field of Business Transformation Consulting, Digital Media, Life Sciences, Linux, Pervasive Computing thus creating billion $ in revenue and is still

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