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Strategic Marketing Case Study
Pages 4 (1004 words)
IBM STRATEGIC MANAGEMENT CASE STUDY Name Course November 26, 2012 Qn. 1 Competences that IBM Invested in while moving from a ‘Product-Centric’ to ‘Service-Centric’ Organization First, IBM invested in the service business by divesting from low margin industries that included producing hard drives and personal printers.
On the other hand, IBM realized that customer-centric and service-centric products have a high-profit margin and investments in products such as software would ensure that company’s profit margin remained high. Hence, divesting from the low-profit margin products was the first step towards investing in service-centric products. Secondly, the company invested in making the company investing in developing services and software with an emphasis on meeting the specific needs of some industries. In this case, the company’s investment in this line ensured that it de-emphasized on creating and producing hardware and focused its attention towards producing services and software tailored to meet the needs of specific industries. Finally, IBM invested in the application of the technology that it manufactured to market its products and reach out to its customers. In this case, the company had realized that it was making technology that it never exploited, whose implications when selling products to customers were evident since customer failed to identify IBM's application of technology. Qn. 2 Description of Louis Gerstner’s Strategy Implementation Style First, it is important to point out that Gerstner was in charge for the turn-around witnessed at IBM. ...
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