Research Paper on:
IBM : SWOT And Five Forces Analyses

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industry. Even as recently as the mid-1980s, Fortune Magazine held IBM up as a model and called the company the foremost technological company in the world and the most progressive  in terms of management [Student, you need to reference this source.] In the early 1980s, IBM held the edge in many different markets: "mainframes, communications, mainframe storage, minicomputers, and personal  computers" (Heller, 2006). Its profit was more than the entire revenue from the next nine computer companies (Heller, 2006). It spent more on R&D than the other nine companies earned  (Heller, 2006). IBM was perceived as being invulnerable (Heller, 2006). That reputation would change only a few years later. The following financial data illustrate IBMs fall from the top. These  selected figures are taken from IBMs Annual Report: Consolidated Statement of Earnings. $ in mil 1989 1990 1991 Sales Revenue 41,586 43,959 37,093 Gross Profit 35,009 38,295 32,318 Cost of  Sales 13,001 19,401 18,997 Net Earnings 3,758 6,020 (2,827) (Source: IBM 1991 Annual Report) In 1991, IBM experienced their first loss in the history of the company. What happened to  this company? The following SWOT analysis will shed light on the events that led IBM to its fall from a throne. Strengths: * Brand: IBM as a brand is internationally  known, the company has always been a global player. Any product under the IBM name was accepted as a high quality product backed by the companys excellent service. * History:  IBM has a long history of producing innovative products. * IBM had a proprietary closed system for its mainframes, which was a strength but it changed to a weakness as  competitors entered the market. Weaknesses: * The company was resistant to change. New companies challenged IBM with personal computers but IBM held resolute to its designs. * Size: IBM is