This 6 page paper looks at an IBM case in which IBM Global Services have to make a strategy decision. The paper undertakes a SWOT analysis and considers the options. The second part of the paper looks at the finical performance of the compnay in the financial year 2004/5. The bibliography cites 3 sources.
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of which provide a high level of competition and have advantages over IBM in certain sectors. To determine which of the three proposed alternatives the company should take we can
perform a SWOT analysis. Strengths Strengths of the company need to start with the reputation and brand names as a market leader. The company has a reputation for quality and
a high degree of intellectual capital that supports a range of services. Some of the core competences are based in the e-commence segment. This is a very integrated company
divided by the functions. The services division is also divided into different sections, each of which is also divided in terms of area and specific interest, but within this there
are more general lines of communications across the divisions and the marketing is undertaken for the company as a whole. This is a cost effective structure but is also lacking
the attraction of specialisation which may deter some customers. Another strength of the company is the high level of customer retention meaning
that were sales of hardware or software are made, as well as previous users of services the customers are likely to return due to the standard of the service.
Weaknesses Attracting specialist staff in an industry that may have some staff shortages in specialist areas is was not a problem for
IBM, but this advantage was eroding during the 1980s when the compnay hit financial difficulties. The former reputation as being one of the USs best employers took a hit with
mass redundancies. This has meant a former competitive advantage to attacked the best staff has been lost. The current size, although an advantage