IBM Strategy Essay

3346 Words14 Pages
Throughout this essay, it will be proven that the strategy for IBM and any large IT company with a similar strategy, in this current global climate, is definitely correct. In order to do so I will be using relevant theory to analyze the external and internal environments of IBM and the IT industry. Within the external environment I will discuss the General, Industrial, and Competitive Environments. In the internal environment I will discuss the Core Competencies, Capabilities and Resources both tangible and intangible. Then I will go into the detail and reasoning behind IBM’s Smarter Planet strategy. After discussing all these factors of the IBM strategy I will discuss which of these are the most important to IBM and determining their strategy. I will clearly show that the current Strategy of IBM is correct and in this current climate one that will see them prosper and build there competitive advantage and return on investment. The current strategy did not spring full blown from anyone's head. Nor was it the result of months of navel gazing. Rather it is a distillation of mounds of data gleaned from within IBM, from customers and from other companies who are not IBM clients. Not surprisingly, the corporate strategy owes its genesis to IBM's Corporate Strategy Group. Headed by Bruce Harreld, SVP, Marketing & Strategy, the group does a lot more than brainstorm strategies. In fact, it examines emerging business opportunities, undertakes issue-specific work (partnering with general managers on defined strategies applicable to particular geos or lines of business), and finally, looks at the overall strategy for the corporation (What is IBM’s strategy October 2008, side article). The four key Stategies of execution for IBM. See below Table 1.0 IBM Four Key Stratgies (IBM Corporation 2009, slide 3) Before jumping straight into the External Environment we need to

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