Managerial Report

Read Complete Research Material


Managerial Report

Global forces drive IBM1

IBM adapted2

Skills of global leaders2

Lessons Learned4

Global forces drive IBM

In today's business environment, having a competitive advantage and maintaining the competitive position is crucial to the success of every organization. IBM as we discussed that it is largest among all Information Technology Companies in the world. They have different responsibilities as well to perform as per their mission and vision. IBM investors and stakeholders want as much revenues from the departments of the IBM.

International business machine have different competitors to compete with the market and gain customer loyalty and support as they have in the past as well. World knows that technology industry is one of the most rapidly growing in today's world characterized by continuous growth and incessant innovations every now and then. People move towards the innovation and technology. In the technology industry in general and in computers industry in particular, IBM is among the leading organizations and has been able to manage its presence in the global market since 100 years (Moss Kanter, 2009). It is ranked on 20th position in the Fortune 500 (CNN, 2013). Over a number of years, it has been acknowledged that IBM is the only stock and a public traded organization that has been growing on a consistent basis.

It is central to IBM's corporate culture that they are inclined towards adapting and responding to the changes rather than learning. Moreover, it has maintained its differentiation by keeping its cost low and providing and integrated solution to the customers instead of selling components or parts like one or more of its competitors (Denning, 2011). Even though, the strategies of IBM has made it able to survive for about 100 years when no organization can survive for such a long term, the organization needs to focus on its competitive strategies and social responsibilities that can lift up the company and keep their name in the market.

IBM adapted

In a technology industry, the only constant element is change. Because of this reason, one strategy that the organizations in the technology industry should essentially pursue is the innovation strategy. Only through continuous and rapid innovation, an organization can remain successful and competitive in the technology industry. The primary strategy that have been used by IBM are cost leadership, differentiation or customer oriented strategy. IBM can either strive to be the low cost leader in the market by minimizing its costs and having a large profit margin, from which it can then offer products at a low cost as compared to competitors.

Another way by which IBM can remain competitive in the market is by differentiating its products in a way that cannot be replicated or surpassed by its competitors (Moss Kanter, 2009). This can again be done by continuous innovation and research and development. Lastly, the strategy option available to IBM is pursuing a customer focused strategy. This entails having an outside in approach throughout the organization. By watching and getting to know what is valued by the customers or ...
Related Ads