Fall of Ibm

CASE 15 THE FALL OF IBM Justin Marc C. Tariman B. S. B. A. MKTG 4March 14, 2013 EXECUTIVE SUMMARY Purpose The purpose of this persona study analysis report to understand and formulate a set of actions for the case of a troupe that is experiencing rapid environment changes and bar in protecting its core business such as how IBM sensed its mainframes as king of computers. Problem IBM biggest problems include its huge size, highly bureaucratic decision making approach,and its managements difficulty in accepting the fact mainframes become obsolete sooner.The company lost on its focus toward meet the needs of customers and instead over-emphasizing the needs of the mainframes. Methods of Analysis Methods of analysis used in the case were S. W. O. T. Analysis and Porters 5 Forces of Industry Attractiveness to identify IBMs competitive receipts in a rapid changing environment and where in particular area the company failed to achieve in maintaining its position as market leader. optio n Course of ActionTake advantage Enter into arrangements integration, outsourcing, and consultancy run to fully provide a package of IT products and services. Sustain utilize IBMs contention system to achieved scale economies in production and cost advantages. Build Building competitive advantage on every division while maintaining interdependence among these divisions and prevent rivalry among these divisions. Avoid Avoid expression one-side selling on product lines by giving each division its own sales speciality instead of having a separate division for sales force.Recommendations It is recommended for IBM to ready its company in bowing into systems integration, outsourcing, and consultancy services to fully provide a package of IT products and services. Its a new business but it could greatly restrain more value on its products. This is also an advantage for IBM to used the size of its organization to outsource few of its resources to successfully create a niche in t he industry. Outline of the Action Plan Objective Activities Targets Resources Indicators To enter into systems Going into outsourcing and Within 5 years, IBM will be Research and development The changes of demand in integration, outsourcing, system integrations businessable to take lead in outsourcing and consultancy services to outsourcing and integrate Talents and skills of IBMs fully provide a package of this business to other employees Market share IT products and services. product lines Global divisions Share of revenue get from outsourcing and services. IT infrastructures