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
Andrew S. (2003). Tanenbaum, Computer Networks (4th Ed), Prentice
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.