Title: Case # 15 The Fall of IBM and Case #16 IBM in 2009
To be the world’s leading mainframe and software Service Company that offers its customers professional innovative services that deliver value by providing them with state of the art solutions that leverage IBM’s industry and business process industries.
During the mainframe system era, IBM’s competitors began selling cheaper and high performing IBM compatible central processing units that posed a threat to the company. Entry of Japanese competitors posed a threat to IBM because they had the technical capability to build a powerful computer that matched IBM’s mainframe system. Customers began buying clones from competing companies who promised
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Methods of Analysis I. SWOT Analysis Strengths | Weaknesses | * IBM was the pioneer in creating mainframe systems * IBM had a strong sales force who took charge of product distribution * At that time there mainstream system had a great demand * Became the world’s leading mainframe computer company * Succeeded in creating their own line of PC’s that was a hit among customers * Many large companies invested on their company * Acquisition of new companies was an important move to develop quality products * Mergers were important in developing new products * Restructuring resulted to improvement of production and decreased production cost | * The price of their mainframe systems was unaffordable for other customers * Their mainframe was easily outdated * They always priced their products higher than their competitors’ * The cost of their operation was too high * They were slow to realize the popularity of new technologies * Their products were easily imitated * There software and hardware were not compatible with the products of competitors * Centralized decision making did not pave the way to innovative ideas * Outsourcing was very rampant in other countries |
Opportunities | Threats | * IBM’s systems was unique in providing customers with quality service * Customers were embracing technological innovations * The PC revolution reduced cost and