Case Study 1

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* Given name| * Lawrence |
* Surname| * Lau|
* Student number| * 16012143|
* Email| * lawrencelkh1989@gmail.com|
* Unit name| * Strategic Marketing 310|
* Unit code| * 3900|
* Assignment title| * Case Study One|
* Date submitted| * 8th of April 2013|
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* | * |
* Marker’s comments| * |
* Recorded mark| * |
* Marker| * |
* Comments| * |

Question 1. What competences has IBM had to invest in arising from its transformation from a ‘product-centric’ to a ‘service-centric’ organization? To adapt to the fast changing pace of business, IBM CEO Louis Gerstner took the initiative to transform IBM from product-centric oriented to customer-centric oriented company (Jain,S.C. et all, 2012). Product-centric organization is defined as organizations that focus on the products it brings to the market rather than the customers who buy their products (Brown, C. 2012). These companies are heavily investing into new product development by utilizing technology or specialized skills that the company possess. On the other hand, customer-centric organization is defined as organization that is operated based on customer's point of view (Mifflin, H. 2010). Unlike product-centric organizations, these companies would come up with strategies to convince and attracts customers to buy their products rather than focusing only on developing new products (Mifflin, H. 2010). A customer-centric organization develops products and services their customers according to their need and wants (Mifflin, H. 2010). The chart below shows the differences between product-centric and customer-centric companies: (Brown, C. 2012) Back to the case, IBM was a product-centric organization where they spend most of their resources in research and development of products during 1980s and even produced four noble prize winners (Jain,S.C. et all, 2012). This shows that IBM was doing very well back then. However, despite of IBM being excel in their product and development but they lack the attention for customers and neglected them overtime (Jain,S.C. et all, 2012). As time advances, market pattern starts to shift. Therefore, to be able to stay competitive in the market, IBM has to reorganize their strategies. In the case, there are many evidence shows that IBM undertakes many changes to transform into a customer-centric organization (Jain,S.C. et all, 2012). Focus 1: Emphasis on improving the speed, customers, teamwork and execution IBM emphasized on improving their speed, customers, teamwork and execution. To do this, Louis began by standardizing global core processes and centralizing the company to play by its strength as a provider of solutions to customers, fixing the core businesses (Jain,S.C. et all, 2012). Besides that, IBM also refocuses their corporate culture. Corporate culture is defined as organization’s core values and attitudes which will affect the entire perspective and how the organization operates (Jain,S.C. et all, 2012). For example, it gives employees a sense of purpose and direction and of how to behave during work. To achieve this, Louis redesigning the metrics and reward systems of employees and relentlessly driving the culture towards an intense focus on the marketplace and most importantly, the customers (Jain,S.C. et all, 2012). Focus 2: Repositioning IBM in customer’s perspective

Louis also decided to reposition IBM in customer’s perspective by heavily investing and improving their service division so that IBM could offer better service to their customers. In year 2002, IBM acquired the management consulting and technology arm of PricewaterhouseCoopers for US$3.5 billion to strengthen its service division (Jain,S.C. et all, 2012). Furthermore, IBM increases the number of consultants in the organization by adding another 30,000 consultants from 52 different countries (Jain,S.C....
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