IBM Expansion Approach in the German Market - Case Study Example

The paper "IBM Expansion Approach in the German Market" is an outstanding example of a marketing case study. The world’s information technology industry is of age and yet new devices and applications continue to emerge. The business models can be said to be at maturity phase evident from the slowing innovation. However, the industry is reported to be more productive compared to other existing industries, especially in the developed world. Furthermore, it is the key driver of the world’s economic growth. Storz & Moerke (2007) argued that the IT industry is the most dynamic and competitive industries globally. There are immense business opportunities in the industry following the increasing innovation cycles. The world is quickly adopting technology, therefore, necessitating more services from key players in the industry. More entries are realized in the industries with small and medium-sized companies looking forward to exploiting the existing market gaps (Kalyanaram, 2010). However, these new businesses face a great threat from established firms that have dominated the industry for several years. Some of the renowned companies in the industry include Apple, IBM, and Hewlett-Packard. IBM is the company that is widely discussed in this paper. The company has employed several business strategies to ensure that it expands its share in the United States market and global market. In the recent past, the firm has focused much on pursuance of high-value innovation rather than a commodity, services, and product technology. In 2013 and 2014, IBM recorded an increase in revenues. It was an indicator that the company has been successful to some extent in the information technology industry. Therefore, since the firm has a promising future in the industry, it would be necessary to expand its business into other emerging markets like Germany (Thompson, 2015). This paper seeks to evaluate IBM’s expansion approach in the German market. An analysis of the information technology industry in the United States, where IBM’s headquarters are located, and Germany will be vital in the evaluation of the company’s expansion approach.