This report discusses on International Business Machine’s (IBM) corporate strategies over the decades. IBM, called the big blue, the world’s largest computer company suffered major profit disasters in corporate history in the early 1990’s due to poor corporate strategy. After this disastrous period, IBM had to turn around its position to stay sustainable in the business. From then on the company steered itself towards consolidating and positioning itself as a formidable force to reckon with in the computer industry. This report analyses the company on the situational as well as internal factors that contributed to the turn around decisions taken by the top management of IBM as well as its current strategy.
I/O oriented tools like PEST, Porter’s and 3C situational analysis are used for external analysis whereas resource-based view tools like VRIE, value chain and financial analysis are used for identifying IBM’s strengths, core competences and capabilities. Although these are adequate to analyse a firm the report looked at a more contemporary tool called Delta model, developed by Hax & Wilde II (2001) that looks at organizations as an extended enterprise having three types of competitive advantages. In this framework the strategy is customer bonding that is very much needed for firms to position ahead of its competitors in modern industrial atmosphere.
Firms should capitalize on vital factors called key success factors (KSF) that may put them at a competitive high ground. Key success factors for IT industry like alignment to dynamism, skilled manpower, flexible environment and sustaining the innovations are identified and validated why these KSFs are important.
From the analysis, key strategic issues for IBM are identified, that are scrutinized to identify gaps or misalignments to IBM’s strategies and finally options are recommended……….
International Business Machines Corporation (IBM), also known...