IBM India Facts and History - Assignment Example

Download file to see previous pages The report in 2005 also recognized ‘IBM Daksh’ as the best-managed outsourcing vendor in the world. It was determined from the report of 2005 that IBM was the market leader and it was the holder of 5.5% market share of the Indian domestic IT market. IBM is the largest software exporter in India. IBM has helped over 15 Indian state governments to concentrate on e-governance related projects as found in the report provided in 2005. (IBM India: Facts and History, n.d.).
The business model of IBM is mainly based on three particular components. The components are ‘industry model’, ‘revenue model’, and ‘enterprise model’. In case of ‘industry model’ the value chain is determined by the innovation of the products. By innovation of products, it means the introduction of the company into new verticals. An example can be cited in relation to this. Virgin who was into the retail business shifted their business towards ‘airlines’, ‘railways’, ‘beverages’, and ‘financial services’. The biggest path-breaking move in case of the industry model is to develop an entirely untapped industry or a few untapped segments of the industry. In case of ‘revenue model’ the approach is mainly focused on the generation of revenues by introducing new pricing methodologies. New products and services are also offered to the consumers. ‘Revenue model’ is influenced by the preferences, choices and experiences of the consumers. This also creates a scope for innovation in the field of technology. An example can be cited in this regard where ‘Gillette’ had done price innovation by under pricing the razors to sell razor blades. In case of ‘enterprise model’ the approach is mainly based on the innovation of the structure of the organization and the role it plays in creating existing value chains. Through the help of this model, the company is able to redefine its organizational boundaries.  ...Download file to see next pagesRead More