Free Essays

IBMs Strategic Alternatives

International Business Machines or IBM as known worldwide is a very successful IT company despite the fact that they were confronted by strategic discontinuity on the birth of the PC’s. Along with other big companies IBM knew that there are three basic ways to compete – delivery/convenience, quality/service, and price at which a low-volume low-profit sale must be avoided at all costs (Beam 1990). Strategic business planning as applied by big companies is not impromptu but a product of a long and rigorous planning and development.

Traditionally, IBM sells on the basis of brand name and charge a premium price and on the basis of superior performance. IBM faces its present challenge by not only making good but in fine tuning its traditionally tested ways. The company aims for its best by continually providing superior delivery of service which has lead to five new service products. They are: Business of IT Executive Workshop Service Product, Service Management Strategy and Planning Service Product, Service Management Design Service Product, IT Optimization Solution Framing Service Product, and Infrastructure Strategy and Planning Service Product.

Through continuous planning, IBM strategic evolution began. This enable the firm to look into new challenges and opportunities, makes a review on major issues affecting the industry and implement decision making bi-monthly. With the innovative or deep dive research, IBM was able to explore competitive initiatives and able to allocate resources in a month or within ninety days. Though IBM strategy is quite different today than it was on the 90s, its implementation has remained flawless and was able to repeal its competitors in the past like the General Electric and RCA.

Steady and quick efforts will enable the firm to maintain its position while facing the challenges of economic and political upheaval that is happening worldwide.


Henry H. Beam 1990, Business Horizon, [Electronic Version]. Retrieved 03 February 2008 from, http://findarticles. com/p/articles/mi_m1038/is_n4_v33/ai_9245921/pg_1 IBM 2006, New IBM Service Products Address Technology Investment Challenges, Press Room, [Electronic Version]. Retrieved 03 February 2008 from, http://www-03. ibm. com/press/us/en/pressrelease/20667. wss