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The Case of IBM - Assignment Example

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The Case of IBM.
The firm realized that it must discontinue its dogged approach to further invention and must refocus its expertise on business services and forcing key changes in the firm’s competitive marketing strategy to seek to integrate these services with the new customers that were available within the system…
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The Case of IBM
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Download file to see previous pages Description of Louis Gerstner’s implementation style of IBM’s competitive strategy in the early 1990s.
The implementation strategy was something of a giant gamble. What Gerstner ultimately attempted to do was to take a failing and unprofitable firm and completely redefine the way in which it marketed itself and integrated with the needs of the consumer/market. As a function of this, he not only drastically reduced the workforce of the multi-national firm, he also resisted the urge to break IBM into smaller companies that would focus on individual market needs; rather, he decided that the strength within the IBM brand name and recognition could help the sum of the components to achieve a higher level of net worth and growth as a single entity. In this way, the business concept of synergy is aptly portrayed. With regards to the competitive strategy, Gerstner reviewed the market and saw that IBM was already far behind the curve with relation to the development and invention of new business products, PCs, printers, memory devices etc. Rather than attempting to expend huge amounts of capital, much of which had already been lost as a result of several years of severe losses, Gerstner saw the better approach would be to focus upon an area of the market whose potential had yet to be fully tapped; i.e. business and consumer services.
What are the implications of the globally integrated enterprise model for marketing managers in Australia and New Zealand subsidiary of IBM? This approach helped to decentralize the decision making process that was engaged in the nations and markets of New Zealand and Australia. Ultimately, although a somewhat dangerous maneuver, this helped to allow a degree of self-determination with respect the best way to integrate with consumer demands and needs within these markets. By allowing such a process to move forward, IBM made a risky gamble that ultimately paid off many times over. By relying on subject matter expects and oversight within these given markets rather than a centralized command and control within IBM headquarters profits from such markets soon rose precipitously and allowed the firm the wherewithal to continue with the bold changes that defined the decade of the 1990’s and the subsequent rebirth and renewed profitability of the firm (Stover, 2005). Discuss the elements of the marketing strategy that makes IBM successful in today’s global marketplace These strategies have been briefly touched upon within the preceding 3 answers that this study has touched upon. However, the most important strategy which was mentioned, in the mind of this analyst, is the level to which Gerstner chose to remove all other consideratinos from the table and focus soley upon integrating directly with consumer needs and market demands; rather than focusing upon the old tried and true products that had built IBM into such a formidable ...Download file to see next pagesRead More
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