AKASH (11BSP0058) SAHIL (11BSP0859) MUDIT (11BSP0570) ADITYA GUPTA (11BSP0038) KAPIL (11BSP1423) SOORAJ (11BSP1003)

INTRODUCTION ON IBM
IBM is an innovation company, serving the needs of enterprises and institutions worldwide.

IBM seeks to deliver clients success by enabling their own capacity to innovate, so that they may differentiate their organizations to create unique competitive advantage.

IBM draws upon the worlds leading systems, software and services capabilities to turn enterprises of all sizes, in every major industry, into demand businesses to help its clients achieve growth, productivity, efficiency, and the realization of greater value through innovation. IBM views enterprise innovation not only in terms of products and services, but across all dimensions of a business: its business processes, business model, management systems, culture and role in society.

Business Operations
IBM delivers on demand solutions through the following business segments: Hardware products like Servers, Storage, Personal systems, Printing systems and Retail store solutions Software Connect operating systems, business processes, and applications seamlessly. Research Innovative technologies that produce leading-edge solutions.

Services Comprehensive IT services

integrated with business insight to reduce costs, improve productivity, and assert competitive advantage. Financing A leading provider of financing and asset management services to companies selling or acquiring IT related products and services. Technology Develop, market and deliver leading chip technologies and services.

Vision statement:Solution's for a small planet

Mission Statement:"At IBM, we strive to lead in the invention, development and manufacture of the industry's most advanced information technologies, including computer systems, software, storage systems and microelectronics. We translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide."

SWOT/TOWS MATRIX

To develop strategies that take into account the SWOT profile, a matrix of these factors can be constructed.

The SWOT matrix, can be changed into what is known as the TOWS Matrix that is shown on the next slide:

SWOT / TOWS MATRIX

TOWS Analysis Opportunities Strengths
S-O Strategies
S-T Strategies

Weaknesses
W-O Strategies
W-T Strategies

Threats

SWOT / TOWS MATRIX

S-O strategies pursue opportunities that fit well the company's strengths. For eg IBM can invest to improve its ability to help its clients innovate. W-O strategies overcome weaknesses to pursue opportunities. For eg IBM, has the capability to react and reform at speed and it would do so in short period of time. S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to external threats. For eg IBM can strategically invest in services and technologies that have the best long-term growth and profitability prospects W-T strategies make a defensive plan to prevent the firm's weaknesses from making it susceptible to external threats. For eg IBM maintains an effective internal control structure.

Porters Five Forces Model

IBM has no bargaining power over their suppliers since the company has its contracts and business to business agreement over their suppliers and switching suppliers would be costly for the company. Buyers on the other hand have strong bargaining power since IT business has grown rapidly in the recent time. There have been many small IT businesses which are competing with IBM.

However, threats of new entrants are weak since processes of discovering new technology is patented and venturing in the same business is too expensive. Customers also tend to be brand loyal and since the company has gained its reputation in the market. Threat of substitution is also low because IT technology is differentiated from other products and there are no substitute for IT solutions. Rivalry in the industry is the strongest since there have been many IT businesses emerging in the market and offering new technology that is different with what IBM offer.

IBMs BCG Matrix

IBMs Strategies

Short-Term Recommendations
1.Capitalize on technological, business and social trends 2.Maintain market-share leadership 3.Focus investment and resources on emerging growth areas,