Technology and Strategy

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Q.1) What are the strengths, weaknesses, opportunities and threats are suggested in Louis Gerstner’s comments. Ans:
It is the world’s premier commercial centre of technology innovation. IBM’s 3 major growth engines –services, software and component (OEM) technology provide more than half of IBM’s revenue. Technological advancement: IBM has “blue chip” 500 today’s fastest computers. Weakness

No share in all segments e.g. hardware, software, etc
It is the period of explosive demand for everything. And the business will depend on internet. E- Business will reach $600 billion by 2003 and even larger. Potential for growth more than current market position as today’s marketplace is hyper dynamic. Threats

The hackers.
The competition. (Cisco, Siebel system, i2 Technologies, SAP, Telcordia Technologies.)

Q.2) What corporate-level strategies are illustrated in his statement? Ans:
Gerstner started to strive to lead in the invention, development and manufacture of the industry’s most advanced information technologies, including computer systems, software’s, storage systems and microelectronics. IBM translates these advanced technologies into value for their customers through their professional solutions, services and consulting businesses worldwide. Gerstner also brought with him a customer-oriented sensibility and the strategic-thinking expertise; he had to take dramatic action to stabilize the company. Then he started rebuilding IBM's product line, continuing to shrink the workforce and making significant cost reductions. IBM delivered complete IT solutions to customers. He recognized that one of IBM's enduring strengths was its ability to provide integrated solutions for customers - someone to represent more than piece parts or components. Gerstner articulated IBM's new vision - that network computing would drive the next phase of industry growth and would be the company's overarching strategy.

Q. 3)The mission statement of IBM:...
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