Presented By:-

Dipanjana Saha
Swapnil Chaudhary
Sameer Labba
Taniya Bose
Shadab Kachi
Hrushikesh Patil
Aayushi Goyal
 Porters 5 Model

Threat of Client- Server

PCs, advent of Internet

Bargaining Helped customers

power of concentrate on
suppliers high personal
due to few productivity,
players, lower decentralized
margins buying decisions

Japanese vendors/ Dell/ Cisco/

Microsoft with interoperable parts,
cost effective , Netscape Browser

ANNEXURE 1
1911 1951 1952 1954 1957 1961 1963 1965 1966

1967 1969 1971 1973 1975 1976 1981 1983 1984 1986

1989 1990 1992 1995 1996

 1914 1950 1985 1993 2002
Thomas Thomas Watson Samuel
Watson Sr John Akers Louis Gerstner
Jr Palmsiano

Founded in Own computer Differentiati Focus on high

1910 product line on Sold off low
margin business
Focus on 70% market No layoff value
Introduce think commodities
large scale share policy ended pad
tabulating Outsource Launched Acquire 100
Integration firms
solution for components to IBM PCs
customer Client Centred Focus on
Microsoft and &
First Slogan Intel high tech
Accountability problem
THINK International
Expansion
Outsourced PCs IT solution &
Customizatio
n
Value Chain Analysis
Inbound Logistics Out bound Logistics

Operations: Marketing-Sales
Services

Infrastructure The company had 125 separate data centers world wide and 128 CIOs.

Human Resource VRS was introduced ;Line executives were empowered and made accountable for their
results

Technology Gersner presented a new server and network-based vision, calling it Network centric
Development computing

Procurement In 1990,IBM had won a major outsourcing deal with kodak

Corporate Level Strategy
Retrenchment Strategy
Turnaround Strategy

Business Level Strategy

Cost Leadership

Functional Level Strategy

Marketing Strategy- New Product Strategy
Promotion Strategy
HR Strategy - Layoffs
FINDINGS (SWOT Analysis)
.
STRENGTH:-
Being the leading Company of US in 1980s
2nd most profitable company in 1990.

WEAKNESS:-
Marketing Myopia
Beauracratic decision making
Complex Product Line
Improper Market Research

OPPURTUNITY:-
Brand Image of IBM
Ability to offer Global Platform for all IT Solutions
Upgrading their system to MAC

THREAT:-
Plug Competitive partners pricing their products in a better way than IBM.
Current CEO Ginni Rometty
 Appendix -1: Historical Advancements in Computer
Industry:
Year Event
1911 IBM founded
1951 UNIVAC, EDVAC, Whirlwind, MARK-I created
1952 IBM 701 by Watson Jr.
1954 FOTRAN, IBM 650
1957 First dot matrix printer marketed by IBM.
1961 APL Programming Language by IBM
1963 Mouse invented by Engelbart
1965 BASIC Programming Language developed
1966 Entry of HP into PC market
1967 Floppy Disk invented by IBM
1969 UNIX OS developed
1971 Intel releases 4004 commercial PC microprocessor
1973 TCP/IP , Ethernet protocols developed
1975 Microsoft founded
1976 Apple Inc. founded
1981 IBM's first PC
1983 Apple launched LISA PC
1984 HP ventured into Laserjet Printers
1986 Apple launched MAC PC
1989 Invention of www.
1990 MSOffice released
1992 IBM releases ThinkPad laptop
1995 Formulation of JAVA & JAVAScript
1996 Netscape Browser released
 Business units across IBM have moved towards systematic
assessment and optimization of their application portfolios. The
benefits are tangible:
Retire: IBM reduced its portfolio of 15000 applications in 1998 to
6800 in 2000.
Reprioritize: IBM now classifies all of its applications by business
value and restricts or targets maintenance of these applications
accordingly.
Rustproof- IBM proactively reengineers applications to reduce
the possibility of maintenance problems. As such the companys
applications defect rats have declined by 58%, and maintenance
cost for these applications have been reduced by 20 %.
Relocate: IBM currently source 40% of its maintenance work to
lower cost regions and sees saving of 60 to 70%.