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IBM Case Study

1.) IBM advertises itself as a company that provides service and business solutions. It used to be positioned as a computer hardware company, but as more companies like HP and Dell began to pop up they were forced to move away from this image. I recently had the pleasure of speaking with an IBM sales person, and he said that they very much rely on the value of their products, rather than competing on price. IBM positions themselves as having better, but slightly more costly, products than their competitors. IBM doesn’t want to be seen as just another computer company, but as a company that can help you run your business, and make life all around easier for you.

2.) Prior to 1993 IBM’s advertising was handled by a large number of different agencies. Until the late 80’s this wasn’t a problem because IBM was such a dominant player in the market. However this eventually became a problem as IBM was beginning to loose its identity have portray itself in a wide variety of ways around the country. In 1993 IBM moved all of it’s advertising to Oglivy & Mather whose goal was to “keep the IBM brand fresh, interesting and topical.” In 1995 they introduced “Solutions for a Small Planet.” These ads were meant to create a unified brand image of IBM around the world, while connecting everyone on this “small planet”. This campaign was very successful, and was a huge step in restoring IBM’s image.

In the late 90’s the introduced the “E-Business” campaign. This was to connect with people who were beginning to use the internet more and more for their business and personal use. This was a very good move as using the internet in some way is now a part of almost everyone’s daily activities. This campaign continued to connect the brand with being able to help people with their business needs. Testimonials from customers such as Mercedes Benz and Motorola were used to back up the message that IBM can help you with your business. This campaign was

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    19 David Kirkpatrick, “Gerstner’s New Vision For IBM,” Fortune, November 15, 1993 Brenda Dalglish, “Big Blue Back In Black In 4Q: Revenues Down,” Electronic News, January 31, 1994 Gustavo Lombo, “The Axeman,” The Economist, July 31 1993 William J. Cook, “Big Blue Powers Its Way Back,” US News & World Report, May 29, 1995 Deborah A. Leishman, “Solution Customization,” IBM Systems Journal, 1999 Patrick L. Porter, “Master of the Game,” Software Magazine, July 1997 Ibid Ibid The Economist, “What Went Wrong At IBM”, Jan., 1993 Stratford Sherman, “Is He Too Cautious To Save IBM,” Fortune, October 3, 1994 Manjuris (lecture), May 11, 1999 Ibid, May 4, 1999 Jill Gambon, “The New IBM,” InformationWeek, November 11, 1996 David Kirkpatrick,” Gerstner’s New Vision For IBM,” Fortune, November 15, 1993 Ibid Ibid Ted Smalley Bowen, “AlphaWorks Thinks Outside the Blue Box,” Info World, December 18, 1998 Manjuris (lecture), May 6, 1999 K.-T. Huang, “Capitalizing On Intellectual Assets,” IBM Systems Journal, 1998 Stratford Sherman, “ Is He Too Cautious To Save IBM,” Fortune, October 3, 1994 Manjuris (lecture), May 11, 1999 Ibid Barbara DePompa, Brian Gillooly, “IBM Picks Up Pieces,” InformationWeek, February 13, 1995 Michael L. Tushman, Charles A. O’Reilly III, Winning Through Innovation, (Boston: Harvard Business School Press, 1997), p.181 Ibid, p.54 Geoffrey Brewer, “Lou Gerstner Has His Hands Full,” Sales & Marketing Management, May 1998 Ibid Ibid David Kirkpatrick,” Gerstner’s New Vision For IBM,” Fortune, November 15, 1993 Jill Gambon, “The New IBM,” InformationWeek, November 11, 1996 Louis V. Gerstner Jr., “The Last Thing Customers Need Is One More Parts Maker,” Fortune, November 15, 1993 Brenda Dalglish, “Big Blue Back In Black In 4Q: Revenues Down,” Electronic News, January 31, 1994 Manjuris (lecture), May 6, 1999 Richard Evans, Internet Research Consultant, CNC (Interview), June 1999 Manjuris (lecture), May 11, 1999 Ibid, May 13, 1999 Ibid IBM 1998 Income Statement, Internet, “http://www.ibm.com/annualreport/1998/statements/ibm98arcsbs.html” Michael L. Tushman, Charles A. O’Reilly III, Winning Through Innovation, (Boston: Harvard Business School Press, 1997), p51 Ibid, p.30 Word Count: 3199…

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