International Business Machines (ibm)

Abstract


The International Business Machines Corporation, IBM, is the world’s largest information technology company, with 80 years of leadership in helping businesses innovate. Drawing on resources from across IBM and key Business Partners, IBM offers a wide range of services, solutions and technologies that enable customers, small, medium, and large, to take full advantage of the new era of e-business. This paper will present a brief overview of the company, including a brief SWOT analysis, and a review of the marketing, management, and financial aspects of the firm. Finally, recommendations will be made for continued growth and success. 



History

The company that was founded in 1888 as the Tabulating Machine Company by Herman Hollerith, in Broome County, New York. It was incorporated as Computing Tabulating Recording Corporation (CTR) and was listed on the New York Stock Exchange in 1916. IBM adopted its current name in 1924, when it became a Fortune 500 company. In 1951 the company entered the computer field.

Today IBM is the world’s largest provider of systems integration and technology consulting. It offers services in areas such as application development, data storage, infrastructure management, networking, and technical support. IBM Global Services is also among the world leaders in providing business consulting and outsourcing services. IBM Global Services is headquartered in Armonk, New York and employs 190,000 employees across the world.

The company recorded revenues of $48,291 million during the fiscal year ended December 2006, an increase of 1.9% over 2005.The operating profit of the company was $4,934 million during fiscal year 2006, an increase of 44.9% over 2005.

SWOT ANALYSIS

Strength

o Market leadership

o Diversified lines of business

o Lots of funds for R&D (The IBM Corporation has invested $6.1 billion in 2006 for research and development activity)

o Strategic delivery centers (The company has 16 strategic delivery centers across India, china, central and Eastern Europe and Brazil)

o High brand awareness

o Old first one scene

o Long history

Weaknesses

o Market laggard

o Slow moving, has a long term out look yet slow to react

o Entrenched and Weak management.

Opportnities

o Cross-selling business lines/products

o Indian operations

o Increasing IT outsourcing

o Growth in BPO services (IBM Global Services revenue increased due to better performance by strategic Business Process Outsourcing segment, which registered 3.2% growth compared to 2005)

o The consulting and AMS market opportunity

o Weaker competitions

o Has the fund for R and D

o Great trade name and is trusted.

Threats

o Offshore consultancy (the political debate in over outsourcing in the US has resulted in a number of US states seeking legislation to block government contracts to companies that shift jobs offshore)

o Competition and consolidation (IBM faces competition from BEA Systems, Oracle, Sun Microsystems and Microsoft)

IBM Global Services is the largest IT services company in the world with more than twice the revenue of its nearest competitor. The company is a leading service provider in IT outsourcing, web hosting and consulting and systems integrations. It offers services in areas such as application development, application management, data storage, infrastructure management, networking, and technical support. This long-standing position of market leadership as end-to-end solution provider enhances the company’s brand equity and gives it a significant competitive advantage. However, the growth in stature of offshore consultancy firms, particularly Indian firms, poses a significant threat to IBM’s market share and profitability.

References:

http://www.cwpost.liu.edu/cwis/cwp/library/database.htm

http://en.wikipedia.org/wiki/IBM

www.ibm.com