IBM Business Strategy Case Study Example | Topics and Well Written Essays - 1000 words

IBM Business Strategy - Case airfield ExampleThe contributing key success factors were However, in 2002, with the achievement and success of its line of descent model and the creation of the new computing architecture like grid and utility computing, IBM made a high-profile announcement close to its new corporate strategy centered on the concept of on fill business. Unluckily, IBMs stock certificate price plunged down and hit the lowest after the disappointing financial military issues in the first drag of 2005 with sales increased by merely 3% from the previous year, far lower than many application analysts forecast of a 6% increase. It was some years after Sam Palmisano took over as of import executive officer (CEO) in March 2002. As a precautionary measure, the company announced an Brobdingnagian restructuring in its European operations. Even though there were improvements in the second quarter, some began to express their uncertainties and doubts whether the on demand business strategy would deliver the promised results. More distinctively, many started to question how and why such a strategy was accepted and justified in the first place.In order for IBM to remain competitive and in advance of its competitors in the increasingly crowded marketplace, a new corporate strategy called the On Demand Business, was conceived. ... In an interview, Ginni Rometty, the global head of IBMs Business Consulting Services, talks about the on demand era and on demand business. The on demand era is primarily characterized by change. Companies are being challenged to respond with speed to an increasingly fast paced and complex environment. Because the rate of change in this environment will become constant and unpredictable, adaptability and tractability will be critical. Successful companies will have the ability to nimbly adapt to changes in their environment, from detective work and responding to the needs of nodes in realtime to adjusting spending around mar ket fluctuations. An on demand business is one whose business processes -- integrated end-to-end across the company and with key partners, suppliers and customers -- can respond with speed to any customer demand, market opportunity or external threat. In our research into the long-term business and technology trends poignant companies, IBM has identified four essential attributes of an on demand business responsive, variable, focused and resilient. As companies move on the continuum between traditional and on demand business, they will more strongly exhibit these characteristics. On the otherwise hand, we might wonder if this new strategy really works If this makeover is a success, why did the stocks of IBM plummet in the recent years Perhaps, there are loopholes in the process of implementation with this new corporate strategy. The result of my thorough investigation, analysis, and research showed that the critical issues involve here are diligence Development and Strategic Dev elopment.Industry Development. An Industry