IBM group 5

8/6/2019 IBM group 5

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Presented by: RAGHU

RANJANI

RANJITHARENSTON

RENUKA

RUPA

SAHANASANDEEP

SATHWIK

SHILPA



Introduction

� IBM is a global technology and

innovation company that stands for

progress. With operations in over 170

countries, IBMers around the world

invent and integrate hardware, software

and services to help forward-thinking

enterprises, institutions and peopleeverywhere succeed in building a

smarter planet.



Mr. Shanker AnnaswamyRegional General Manager,

IBM India/South Asia

Mr. Samuel J.

PalmisanoChairman of the Board and Chief Executive Officer

IBM Corporation



� IBM has been present in India since

1992.

�

The diversity and breadth of the entireIBM portfolio of research, consulting,

solutions, services, systems and

software, uniquely distinguishes IBM

India from other companies in theindustry.



� IBM India's solutions and services span

all major industries including financial

services, healthcare, government,

automotive, telecommunications and

education, among others. As a trusted

partner with wide-ranging service

capabilities,IBM

helps clients transformand succeed in challenging

circumstances.



� IBM has been expanding its footprint in

India - and has a presence in over 200

cities and towns across the country.

� IBM India has clearly established itself

as one of the leaders in the Indian

Information Technology (IT) Industry -

and continues to transform itself to alignwith global markets and geographies to

grow this leadership position.





Strengths

� Largest and most profitable company.

� Most recognized brand name in theworld.

� First company to establish research labsfor the creation of technologicalinnovation.

�

High capital for large acquisition� Recent merge with Lenovo.

� Good will.



WEAKNESS

� Operating cost and size.

� Recession.

� Spends lot on its research anddevelopment and the implementation of

new process is little different.

� Communication across different

countries can be very challenging.



Opportunities

� Increased globalization is an important opportunity that

can be exploited by IBM in order to balance the

fluctuations in different economies.

� Their brand image is synonymous with ³big´ and ³old´

they need to create products appealing to a younger

generation and reposition their company.

� IBM needs to maintain a competitive edge in the

marketplace and innovation is key and working with IT-

related companies to create new products in the ever

changing market; use patents to generate revenue.



Contd..

� IBM¶s operating systems, specifically Linux, benefits

IBM in both the short and long term. IBM can sell its i-

series platforms with Linux to respond to the growing

demands of the operating systems (OS). Also, IBM can

also use Linux on its Z-series mainframe line and even

its p-series machines which mostly uses IBM¶s own

AIX which usually competes against the UNIX

operating system. Open architecture is key to creating

and maintaining market share.� IBM¶s small-medium business (SMB) has improved

over the years but there is definitely a need to increase

its market share to have an overall competitive edge.



Threats

� The fact that they are completely dependent on

Microsoft (in their computer services division) could be

a huge problem if anything ever happened to them.

� Hackers and sensitive information can be exposed andexploited by individuals and IBM needs to be

innovative with regards to firewalls and protective

software.



Contd..

� The supply chain has very few suppliers, leaving IBM

very little to negotiate with or switch to.

� HP, Sun Microsystems are all competitors and are all

threats to IBM¶s bottom line. Their competitors areable to create cheaper products and make more a

considerable profit. Smaller companies that can move

faster and provide less expensive products and services

than IBM can become very costly to IBM¶s more

lucrative bundles focusing more on larger companieswith big budgets.





Envir onmental

Sector s

Natur e of

ImpactImpact of each sector

Economic

Cost of human resource, Tax incentives in SEZ¶s,

Currency fluctuations(strengthening rupee), economic

slowdown, New competitors with new products and

excessive dependence on US.

Market Great domestic and global demand for computer

hardware and software, servers with steady market

growth rate .

International

India stands #1 in outsourcing of software and

consulting services to mainly UK and US. Global IT

spending is increasing. Threat from China, Russia,

Philippines, South Africa with low cost human

resource.



Envir onmental

Sector s

Natur e of

ImpactImpact of each sector

Socio

cultural

India¶s quality man power available in abundance,

Indian education system, Indian culture effecting client

relationships, young working population, 24/7 delivery

capability.

Technological

&

Infrastructure

Good telecom, ISP, and cellular networks and good

connectivity with the rest of the world. Fast changing

technologies and low cost technologies are threats. Bad

roads add to the problems.

Political US Government against outsourcing, IT is a part of the

national agenda in India, liberalization and deregulation

initiatives taken by the government, political stability in

India , well structured tax system, good employment

laws.





Capability factor Nature of

impact

Competitive strengths or weakness

Finance Moderate cost of capital a firm needs in

carrying its business, increase in currentassets year after year and reserves and

surplus position is satisfactory in IBM.

Marketing The competitive rivalry in the server marketis becoming intense in the world. These

competitors included HP, IBM, Sun

Microsystems, Dell and Fujitsu Siemens

Computers. IBM position secure at present

Operations Target operating model

Supply chain strategy

IBM Green Sigma

Shared services



Capability factor Nature of

impact

Competitive strengths or weakness

Personnel Cultivating creative leadersMobilizing for greater speed and flexibility

Capitalizing on collective intelligence

Information IBM Information System is a joint hierarchicaldatabase and information management system with

extensive transaction processing capabilities.

General

Management

High quality and experienced top management

which adopts the situations in IBM regard to

decision making





A corporate-level strategy specifies actions,

a firm takes to gain a competitive advantage

by

selecting and managing a group of different

businesses competing in different product

markets.

� IBM has diversified� Related constraint diversification

� It helps in exploiting economies of scope



It creates value for IBM:

� Economies of scope

�

Cost saving� Tangible resources( plant and

equipments)

� Intangible resources( knowledge and

core competencies)





� IBM's business strategy expertise can help define and

understand:

market drivers, innovative value propositions, risks,

technology strategies, globalization, M&A activity and

the development of new business models.

� The business strategy offerings help the enterprise

understand core competencies and implement

strategies that result in sustainable growth and

profitability.



Business Strategy is one of the competencies

withinIBM

Strategy . The other threecompetencies are Organizational ChangeStrategy, Technology Strategy, and OperationsStrategy.

Help enable the clients to:

� Enhance competitiveness

� Create new sources of economic value

� Drive sustained growth� Increase productivity



COMPETITIVE ADVANTAGE

� Uses HPC(High Performance Computing) to

accomplishes the objectives and gain competitive

advantage

� IBM takes an holistic approach to HPC that involves

designing and delivering complete, robust technical

solutions that are easy to acquire and access,

environmentally responsible, competitively priced, andbacked by world-class support.



S TRUCTURE ANALY SI S

� Utilizing robust computer software and hardware

� Through structural analysis platforms or Computer

Aided Engineering (CAE) and high performancecomputing (HPC) to improve quality, reduce costs and

shorten design and production cycles.

� IBM offers solutions to help transform engineeringdesigns into high quality products



PO SITIONING

� The company has emerged number one in revenuefor fourth quarter (Q4) and full year 2010 in the India

external disk storage systems.

� 2010 leadership -26.2% market share,� in revenue terms- 4% points lead

� Q4 2010 - 29% market share

� In revenue terms -7% point lead

� IBM StorwizeV7000

� IBM System Storage DS8000,



CO S T LEADER SHIP

� Through quality management

� minimum time and at minimum cost and meeting

quality expectations.

� IBM Rational Quality Management is working to help

achieve greater value and performance at less cost

from the investments in product, systems and

software delivery.



PRODUCT DIFFERENTIATION

� IBM use a product differentiation strategy based on

the quality of performance.

� IBM is a technology company that is committed not in

the timeless quality.

� The quality is the fitness level where all units

produced identical specifications and meet the

promised target.



FOCU S S TRATEGY

� manufacturer of Information Technology (IT) products,

� a service provider in the IT industry,

� a buyer of components,

� products and services and an employer

� Focus on research, product development and

manufacturing



IBM group 5

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