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Traditionally, IBM was one of the leading companies operating in the field of information technologies. Today, the company maintains its leading position in the global market, being one of the major multinational computer technology and consulting corporations in the world. The current position of IBM is, to a significant extent, determined by its long historical development which dates back to the late 19th century (Andrew, 2003). At the same time, the major condition of its current success is the constant implementation of innovations, which reveal the unparalleled ability of the company to adapt ever changing technologies and use them to take an advantageous competitive position in the market.
First of all, it should be said that the company has a number of advantageous which strengthen its position in the world market. In this respect, it is worth mentioning the popularity of the brand of IBM which contributes to the customers’ loyalty. Obviously, customers prefer IBM because the company has already proved its reliability and its long history contributes to the high confidence of customers in the potential of the company to maintain the high quality of products and services it supplies to its customers. Another strength of the company is the introduction of innovations. In fact, IBM is oriented on the introduction of innovations in the field of computer technologies, while the extent experience of the company allows IBM to take the leading position in the global market (Andrew, 2003). Also, it is necessary to remember about the high qualification of specialists employed by IBM, since the company traditionally employed highly qualified and prospective specialists.
On the other hand, it is necessary to remember about certain weaknesses of IBM. Firstly, the company is sales-oriented that limits the flexibility of the company since high sale rates constitute the major goal of the marketing performance of the company (Stallings, 2000). In such a context, many competitors of IBM tend to use the customer-centered approach which seems more effective because it takes into consideration needs and interests of customers, while sales-oriented approach can decrease the customer satisfaction because the company will unable to meet customers’ needs.
Nevertheless, the company mission is to keep introducing new computing technologies in order to maintain the leading position of IBM in the global market. In such a context, the company aims at the international market expansion, the development of new technologies, and enlargement of services IBM supplies to its customers. To put it more precisely, recently the company has expanded consistently its consulting services.
In such a situation, the company’s strategy is to use innovations and the popularity of its brand to penetrate new markets and increase its market share in order to outpace its major competitors, such as HP (Stallings, 2000). The development of consulting services is strategically important because it implies the formation of customers’ dependence on IBM’s technologies and products.
As a result, the company has to cope with several challenges it is currently facing. Firstly, it is the growing competition, especially from the part of HP. Secondly, it is the necessity to introduce new, more effective approaches instead of sales-oriented approach. Finally, it is necessary to adapt the corporate culture to the multicultural environment in which the company operates.

Andrew S. (2003). Tanenbaum, Computer Networks (4th Ed), Prentice Hall.
Mingliang, L. (2002). Demystifying Switched-Capacitor Circuits. New York: Routledge.
Johns, D. and K. Martin (2004). Analog Integrated Circuit Design. New York: Random House.
Stallings, W. (2000). Data and Computer Communications, 6th ed. Upper Saddle River, NJ: Prentice Hall.


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