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Group Assignment Technology Park Malaysia Marketing APU1F2011
Group Assignment Technology Park Malaysia Marketing APU1F2011
Group Assignment Technology Park Malaysia Marketing APU1F2011
IBM
PREPARED BY:
ERMA (TP061759)
HAIFA (TP062757)
FAATIMAH BIBI NUSAYBAH SAHEBDEEN (TP062357)
ZAHWA ANANDA PUTRI (TP057394)
DATE ASSIGNED:
DATE COMPLETED:
TABLE OF CONTENT
IBM has been in business for a long time, providing the best products and services to its
customers. Customer preferences, on the other hand, have been evolving over time. For its
employees in each of the regions where it operates, IBM has made significant investments in
highly qualified and motivated individuals. Customer needs differed, but existing human
resources were not nimble enough to adapt. IBM's business success depends on its ability to
remain innovative and creative, as evidenced by most customer needs. IBM has partially
failed in identifying and defining the necessary workforce to manage with rising customer
challenges. IBM has recently faced many challenges that indicate a need for reform. Even
after diversifying into new areas, IBM has struggled to maintain its market leadership and
faces tough competition from competitors in the same industry such as Intel and Microsoft.
IBM is the world's largest manufacturer of computer software and hardware. However, given
the present economic conditions, it is imperative that the organization devise plans to
guarantee that it stays sustainable and productive in both the short and long run. The
corporation had to focus on and change its human resources to guarantee that its worldwide
operations are successful and efficient. IBM is an innovative company that serves the needs of
businesses and organizations all around the world. It describes innovation as the combination
of business knowledge and technical creativity. IBM assists its clients in becoming on-
demand enterprises by assisting them in redesigning their business processes and
organizational structure, which is allowed by new operating systems (Pandey, 2021).
2.0 Introduction
IBM (International Business Machines) is a global technology company that offers hardware,
software, cloud, and cognitive services. It was initially titled the Computing Tabulating
Recording Company and was formed in 1911 by Charles Ranlett Flint following the merger
of four companies in New York (Vinod, 2017). Both commercial and scientific applications,
IBM was the leading global provider of computer systems. It has assisted leading IT pioneers
throughout the years and is currently a worldwide industry that reshapes and flourishes the
way organizations, corporations, and individual’s work. (Computer History Museum, 2019).
IBM is a global leader in information technology and provides a vast range of hardware,
software and service offers. It has been one of the biggest IT businesses worldwide. It is
known as "Big Blue” that has launched its hardware business and succeeded for decades,
becoming the leading provider of mainframe computers. IBM's service units include global
business services that comprise advising activities on big blue management and global
technology services that offer mobility, networking, and continuity. (Moore, 2019). The goal
of IBM is to dominate the most advanced information technology industry, including
innovation, design and manufacture computers, software, networking systems, storage
devices and microelectronics. Through its international professional solutions, services, and
consultants the firm turns new technology into value for its customers (Lambardo, 2018).
3.0 Current Market Situation
According to The Hartford (2021), The current business situation, or marketing situation, is
an integral element of the marketing plan. The marketing plan includes at least one year of
corporate information and may take months to be written. It described the description of the
company, a marketing plan in place and goals for the future. It also states the company's
mission statement. The current business situation is one piece in a plan that describes the
current state of the enterprise market.
On the 17th June 2021, IBM and CLX Health announced projects to integrate an Internet IBM
Digital Health Pass with the Trust Assure TM CLX Platform, in order to help individuals find
and schedule the COVID‐19 test with a provider in a smooth, secure way, and to create a
verified credential to use when returning to physical places, like an airports, stadiums or the
workplace. (ARMONK, 2021)
The IBM Digital Health Pass is intended to allow organisations to validate COVID-19 test
results or vaccine administration for employees, customers, and visitors entering their facility,
such as a sports stadium, airport, universities, government building, or workplace. The IBM
Digital Health Pass is a secure, voluntary digital alternative to paper test results or vaccination
cards based on the combination of encryption, QR codes and blockchain technology, and
provides another option, where appropriate, to share that people have tested negative or have
been vaccinated for COVID-19. (ARMONK, 2021)
On June 15th, IBM and Ocean research non-profit organisation ProMare, announced that their
ship, which is equipped with 700kg of scientific equipment, is attempting to cross the Atlantic
Ocean to reach the United States.
The Mayflower Autonomous Ship (MAS) uses the energy of the sun and AI to travel and
reveal more information about the ocean with no human captain or on-board crew. MAS, in
collaboration with scientists and other autonomous vessels, provides a versatile and cost-
effective platform for gaining a better understanding of critical issues such as climate change,
ocean plastic pollution, and marine mammal conservation. (New York, 2021)
IBM has developed a software called HyperTaste known as an ‘electric tongue’, The aim is to
check the health and role of the ocean in climate change. After all, around a third of the
carbon dioxide released into the atmosphere is absorbed into the ocean. Increased levels of
CO2 continually lead to acidification of the ocean with profound effects on marine and ocean
carbon cycles. All these factors are analysed by HyperTaste. (Moskvitch, 2021)
On the 24th of May, the newest edition of the new diagnostic viewer and image interchange
platform IBM iConnect® Access was introduced by IBM Watson Health. IBM iConnect
Access is a real web viewer developed to enable healthcare practitioners around the company
and the team to gather, exchange and access medical imaging data in real-time cooperation
from every Internet-connected device everywhere. (CAMBRIDGE, 2021)
3.2 Competitors
1. Hewlett Packard
Hewlett Packard is an IT corporation that produces and distributes PCs, software, IT services
and solutions to major companies, medium-sized businesses, and consumers.
The enterprise with head office in Palo Alto, California was created in the USA in 1939. Its
turnover was around $100 billion and market capitalization was around $14 trillion at the
beginning of 2017. It employs over 5,000 people.Hewlett Packard (HP) is one of the 50
world's most important brands. It has also placed 49 in sales revenue and 121 in profit
generation worldwide, as one of the world's top employers. It also operates in segments in the
current competitive environment to ensure efficiency and viability. One of the main IBM
competitors is certainly Hewlett pack. (Bhasin, 2018)
2. Accenture
In 1989 Accenture was formed to provide computer services and solutions for many sectors
such as telecommunications, health and public services, banking and insurance, energy and so
on. Ranked At 204 in Forbes, Accenture achieved sales in 2017 at over $40 billion. Its market
capital. Its market capital. In the same year, over $80 billion and about 500,000 workers
worldwide were employed.
Since it was created, Accenture has garnered numerous awards. For example, the greatest
employer, the best employer for diversity, the finest management consultancy firm and Just
Company. The firm is based in Dublin, Ireland. Accenture is regarded as one of IBM's main
competitors due to its prowess in the consultancy market. (Bhasin, 2018)
3. Oracle
Founded in the United States in 1977 to create creative solutions for the software and
programming business, the headquarters of Oracle is located in Redwood City, California. By
mid-2017, its market capitalization stood at over $183 billion and employed almost 140,000
people around the globe. It operates in sectors such as software and Cloud which include
software updates, subscription and licences, hardware systems which addresses a large
number of hardware goods such as servers, storage, repairs etc.
Its Service business segment assures optimum return on Oracle Technologies investments for
its partners and customers. Oracle is one of the major IBM competitors with its excellent
database management and other tools.
TCS was created in India in 1968 and is part of the Tata Group and is an IT solutions and
services consulting firm. It is one of the world's leading technology corporations with about
420,000 employees. It is listed on the BSE (former Bombay) and the NSE in its nation
(National Stock Exchange). It has operations in 46 countries around the globe and is proud to
have a 36 per cent female staff base. In addition, the Institute of Top Employers
acknowledged it as a Global Top Employer.
The company works with customers from various industries who aim to achieve corporate
goals, manage technological changes and enter a digital age through all its activities. It offers
an integrated solution portfolio, consulting and outsourcing services. It produced $20 billion
in revenues between March 2018 and March 2019. It is the second company to follow
Accenture in the Everest Group Ranking.
TCS specialises, among many others, in consulting, interaction services, analyses, IOT,
blockchain and other club infrastructures. The main source of income are consultancy and
integration services.
3.3 Financial
1) Revenue
The basic revenue definition is that the total quantity of cash brought in by a company’s
operations, measured over a collection quantity of your time. Revenue is often calculated by
adding up all of a company’s normal earnings, additionally to gained interest and any equity
increase accumulated over the given fundamental quantity (Sage, 2020). It can be seen from
the data below that revenue from IBM is decreasing every year.
● IBM annual revenue for 2019 was $77.147B, a 3.07% decline from 2018.
● IBM annual revenue for 2020 was $73.62B, a 4.57% decline from 2019.
● IBM revenue for the quarter ending March 31, 2021 was $17.730B, a 0.9% increase
year-over-year. (Data collected from Marco Trends, 2021).
2) Gross Profit
Gross profit is the profit a company makes after deducting the costs associated with making
and selling its products, or the costs associated with providing its services (Hayes, A. 2021). It
can be seen from the data below that gross profit from IBM is decreasing every year.
● IBM annual gross profit for 2019 was $36.489B, a 1.21% decline from 2018.
● IBM annual gross profit for 2020 was $35.574B, a 2.51% decline from 2019.
● IBM gross profit for the quarter ending March 31, 2021 was $8.205B, a 3.56%
increase year-over-year. (Data collected from Marco Trends, 2021).
3) Net Income
Net income additionally brought up as income, web earnings or all-time low line is that the
quantity a personal earns once subtracting taxes and different deductions from gross financial
gain. For a business, the net is that the quantity of revenue left once subtracting all expenses,
taxes, and prices (Bankrate, 2021). It can be seen that net income in 2019 increased by about
8% from 2018, and in 2020 net income from IBM decreased from 2019.
· IBM annual net income for 2019 was $9.431B, a 8.05% increase from 2018.
· IBM annual net income for 2020 was $5.59B, a 40.73% decline from 2019.
· IBM net income for the quarter ending March 31, 2021 was $0.955B, a 18.72%
decline year-over-year. (Data collected from Marco Trends, 2021).
4.0 SWOT Analysis
Strength Weakness
Opportunities Threat
SMART Objectives
Specific - the company has chosen to come up with the ASR to help sanitize large areas
quickly and effectively. For instance, the robot will be useful to sanitize quarantine centers
without risking the life of cleaners who are healthy to get into places with infected people.
With the new technology used by ASR, the robot will be able to sanitize each and every
corner of the designated space which might take several hours to do manually. The
Automation Sanitize Robot is aimed at helping to combat the spread of Covid-19, bacteria
and germs from the area.
IBM is introducing ASR to contribute to the health and safety of the global population, to
help eradicate covid-19, which has done a lot of damage already. This Automation robot can
enter the room and disinfect it with UV-C light without exposing the personnel to hazardous
radiation. A typical hospital room takes 10 to 15 minutes to clean, and the robot spends two
minutes in six to seven different rooms to maximize the number of surfaces disinfected.
Measurable – we have targeted at least 60% of sales for the first year. Our target is to
increase profitability and revenue by 90% after 2 years of launching the product. Market share
is set to be increased by at least 50% by the time the product reaches maturity stage.
Achievable – The profit margin and market share will be achieved by launching the product
with intensive marketing campaigns in the beginning and by implementing a price skimming
strategy. We are going to create awareness by using social media platforms, paid advertising
on websites and by organizing launch events.
Relevant – since the company has planned a huge budget for advertising and marketing
campaigns, and as the ASR is a product in demand, IBM is expecting to reach the marketing
goal in the expected time frame.
Time-based – the company aims to increase marketing activity by 50% during the growth
stage, revenue is set to be increased by 60% by end of first year. We also target to reach at
least 40% of market share after 6 months of launching ASR in global markets. We intend to
reach 95% of customer satisfaction after 10-12 months of launching AS.
Figure 2.0 Three types of levels of products (Expert Program Management, 2021)
o Core benefits
o Actual product
Quality level:
The high quality of the goods, the packaging of Automation Sanitize Robot is securely sealed.
It is an environmentally friendly package. The steamed sanitization pipes are not connected to
the Automation Robot; nonetheless, they will be present together with the item within. The
360-degree camera will be safely enclosed but will coexist with the robot in a different
package. The crawling wheels are not attached to the robot since they are heavy and might
cause harm to the robot. The crawling wheels will not be placed with a robot; instead, in the
same packaging. Hence the packaging would be securely fixed inside.
It was determined that the robots would be completely electric powered because most
existing robots on the market use a petrol-fueled gun with an electric chassis, which may
be unpleasant to refill. It represents a breakthrough in structural design and autonomous
control systems (ELSEVIER, 2021). The Automation Sanitize Robot is powered by a
lithium battery and has a 360-degree camera that provides a live video feed and a
sophisticated visual system that allows the operator to remotely detect problematic regions
and prevent the spread of infectious illnesses. To control the Automation, Sanitize Robot,
the operator must first download an app. Crawler tracks are to increase the robot's ability
to handle different road conditions. With three Ultraviolet lights in the front, the robot can
disinfect and break down its DNA structure and destroy infections in the environment.
These Automation robots can enter the room and disinfect it with UV light, without the
possibility of dangerous radiation being exposed to the employees. The disinfestation of a
normal hospital room takes between 10 to 15 minutes and the robot spends 2 minutes in 7
different rooms to optimize the number of surfaces it disinfects.
Features:
The epidemic has expedited the development of disinfection robots. These robots are popular
for disinfecting rooms of all surfaces in one process, and appear to be appealing to hospital
administrators, owing to their automation and apparent cost savings by decreasing cleaning
employees (DROPAC, 2021). On the top, a camera platform sends video and information in
real time, and an intelligent vision algorithm allows the operator to remotely detect afflicted
regions and prevent the spread of infection. The caterpillar chassis is taken rather than the
wheels to enhance their capacity to overcome barriers and climb hills to make robots function
effortlessly on different road surfaces. In a normal patient room, around six minutes, 99.99
percent of all viruses and bacteria are destroyed. Automation Sanitize Robot will function
without being required for continuous human presence at the location of disinfection in a
uniform manner.
o Augmented Product:
The 100th disinfection robot was delivered today as part of the Commission's initiative to
distribute robots to hospitals across the EU to assist them in dealing with the impacts of the
coronavirus epidemic. Workplaces must be cleaned, commodities must be delivered, people
must continue to get medical treatment. Service robots are being used by businesses to help
bridge the societal divide created by the coronavirus outbreak. The healthcare business has
seen the greatest growing emphasis on service robotics. Throughout the pandemic,
computerized robotic devices were utilized to disinfect germs and viruses in all environments
to maintain the area clean and germ-free. Disinfecting robots will be utilized in a variety of
common places as COVID-19 continues to transform our social way of life..
Installation:
Sanitize through automation Robot producer of disinfection robots that are operated by a
smartphone app or tablet. It utilizes UV lamps to destroy viruses and bacteria in the air and on
surfaces, and the three steam sanitize pipes. This Robots distributor may be used in hospitals,
airports, shopping malls, and more places looking for infection-free solutions. Distributors are
now ready to satisfy demand for what is expected to be a global breakthrough in disinfection
robots. Distributors are now ready to meet demand for disinfection robots, which are
projected to be a global breakthrough.
If a customer has a problem with the product, they must go to the company's website to find
the location of their nearest service center.
Before making any calls, they must have the serial number on hand. Even when a product
fault is discovered, the product will be retrieved within the next working days after the
warranty terms have been confirmed, and they will be returned to their product after the
service has been finished (international warranty, 2021). It is also the company's obligation to
arrange adequate packing utilizing the original package before delivering the goods for
warranty servicing. Inside the box, customers must include the defective goods and all
material accessories, the purchase voucher and return label that they will get after calling the
hotline and providing all needed information.
After-sale service:
Following the emergence of COVID-19, disinfection robot adoption has expanded. The sale
of disinfection robots has increased by 400-600 percent throughout the world. The novel
coronavirus outbreak has also highlighted the inability of traditional disinfection and
sanitization techniques to effectively disinfect and sanitize a facility, prompting the rapid
adoption of disinfection robots, which can effectively disinfect hospitals and other public
areas with minimal human intervention (Lerman, 2021).
1. Introduction stage
The company is going to implement price skimming to introduce the Automation Sanitize
Robot (ASR) on the market as the cost for research and developing the ultra-tech soft-wares
for the robot is exorbitant, branding the robot and sourcing materials such as good quality
metals, raw materials, and developing prototypes also adds up to the expenses. Since, price
skimming is a pricing strategy that charges a high price to introduce a new product on the
market, (Hayes, 2021) the starting price for the robot will be $50,000. This will generate high
profit in the beginning as we are in the global pandemic of covid-19 and demand for the robot
is high. The high profit margin will allow the company to cover the expenses used in
manufacturing and introducing the robot on the market.
2. Growth stage
At this stage, the company has already positioned the product on the market, sales are at its
peak and even though intensive marketing campaigns are going on, a percentage of expenses
incurred in previous stages are already covered up due to high revenue. Coming to the
competition level, IBM will start carrying out surveys from customers to obtain feedback
about our product and the manufacturing team will continue to improve the quality of the
product to ensure positive satisfaction from customers.
3. Maturity stage
At this stage, IBM will use feedback obtained from surveys carried out in the growth stage to
make improvements for our robot such as new features, better packaging and new software
updates which will allow IBM to obtain competitive edge and a marketing campaign will be
launched internationally to make ASR available overseas to increase market share. (gleason,
2021) Since the company is expanding to the global market, international pricing is going to
be implemented; different prices for customers based on their different geographical location.
An analysis of taxes, currency exchange rates, tariffs, shipping costs and existing competitors
and other related factors will be carried out. The company may introduce other versions or
designs of the robot to the international market.
4. Decline stage
To avoid the consequences of the decline stage, the company is going to introduce newer
versions of ASR that suit different customer needs. For instance, a mini version of the robot
may be introduced, which will be more suitable for home and small spaces. The company will
try to introduce the robot to other market segments to attract new customers. For the pricing
strategy, since the robot is already on the market now, advertising cost and excessive
marketing cost will be cut down to reduce investment costs. Any distribution channel such as
agents or retailers will be discontinued or reduced, discounts and lowered prices will be
offered to customers to maintain longevity of the product and to maintain a stable revenue and
profit margin.
6.3 Promotional Strategies
7.0 Conclusion
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