Transcript:
Hello everyone and welcome so today we are going to present you how presentation on IBM with Lukas adrionna juliana qan and Shirin and I so now will see the table of contents so we start with introduction of IBM we will have them the market and that is this marketing strategy challenges and opportunities and we finish with recommendation so further encryption IBM is a multinational present in hundred in 50 countries it was funny in 1911 it is known to be the first company to create a computer system in 1964 was it provided and now they provide technological services and product to many different clients so last year 2019 IBM revenue was 79 billion dollars which is very important so I will now present to the mission so as we can read the mission IBM is very at the top of the technology and they really want to continue to do research and to develop systems and opportunities with their clients so for example you and they want to to to be next to the customer and to continue with them so from the vision and IBM would II want to be one of the most important technology company and they want to be there to help clients with a problem and as they want to be successful to implement new technology to the new customer so we know start with the market analysis so IT market is very very wild in fact the global information technology industry is five point two trillion dollars which is very good but IBM decided to focus on five segments which are global business service cloud platform and Technology Services size systems cognitive solution or and Global Financing so with all the segments the decide to very specify their as a product and this product IBM’s they sell them to a very very large kind of b2b company because as we say in the introduction from custom to restaurant they they need they need datas and neither IT and IBM is there to respond to them so that’s why there are very present in many many companies and at the end I BM clearance as a user because IBM design is I’m system design server design many things to throw the client so IBM clients also user but on this sector the competition is very very hard we all know some of these companies they are very very big so for global business services which is also like consulting we can find like Accenture can gemiini the tech consulting services h-hey wait pro card which is eight HP on software we have like Oracle Microsoft ACP Amazon sells first HP and like that even if they expose never a partnership system technologies it could be more against HP Dell Lenovo for cognitive solution it will be more be it will be matlab at support analytic companies and for the Global Financing which is like helping the companies to to financially to develop the IT support because iBM is able to do that they will say we’ll deal with capitals like HP area Norway cold and Fujitsu so I know I will let adrena explain you about the superiors and customers of I mean iBM has a very very broad range of customers all around the world they be by their cost by different industries so here are only a few of the industries that they work with the first four are the industries that are more most permanent for example the first one is a electronics and computer software and they have customers like knit up Microsoft Oracle SAP etc they also have a customers in the automobile in Airlines industry with our American Airlines damn damn twitch e and Delta Airlines another industry is a finance financial services or banking and here we can find the BNP paribas a Royal Bank of Scotland Bank of America JPMorgan among others and finally another one another industry that is very important is the government and they work very closely with the US government the US Army and the Marine so of course they have other industries that they work with for example the energy and utilities they also the manufacturing telecommunication media and the healthcare which are mostly hospitals now there’s a pliers IBM maintains our relationship of mutual commitment especially when it comes to environmental and social responsibility here we can see that the thousand 18 spending IBM spend around twenty five point eight billion in 2018 with more than 13,000 suppliers in more than 100 countries they divided their suppliers by region in category in their region graph we can see that most of their suppliers are located in North America and in Asia now looking at the graph of the category a the services in general accounts for 82% of the total spending in here are suppliers such as American Airlines American Express Apple Cisco Systems or akimichi Lenovo sub-unit consistent several technologies among others and now for the remaining part of the suppliers which are the production and logistics and in these areas they support our where brands operations and the distribution in some of the suppliers are the chair FedEx EPS program we film Samsung Super Micro computers etc so now Lucas and I we’re going to talk about the marketing strategies implemented by IBM where we have to take into consideration first the IBM is one of the leaders in the technology industry and second that since the main customers of IBM are other businesses the main goal of the company is to ease and optimize their customers operations and processes so that they are able to deliver and create more value for their end customers so now regarding the product and service offered by the company IBM has worldwide presence and they manage a really wide portfolio where they offer both products and services related to hardware and software technologies that are classified into two categories the first one is the technology category where these products and services are related to everything that has to do with IT infrastructure cloud computing software development security mobile technology among many others and the second category are the business needs and these are the products and services that are related to business operations supply chain management marketing and sales ecommerce CRM among many others another example of the IBM’s versatile innovations are the microchips that you can find in the gaming consoles also the ATM is an invention of IBM IBM has also invented many programming dialects and all the checkout machines that you find in supermarket and restaurants have has been invented by IBM so now regarding the pricing strategy this company here we have to take into account that the company and managers are really wide portfolio so we’re only going to mention a couple of strategies that we consider that they implement on a daily basis so the first one is priced based on competitors where IBM sets their prices according to the prices that their competition is managing so according to this they said their price is higher or lower and also according to a theater is their competitors including their products second they implement the product bundle pricing where it is really interesting to see that since most of their competitors are other businesses and they buy in really large quantities so it’s eventually cheaper to buy in bundles rather than to buy in single items these are not the only pricing strategies that IBM uses they also use market penetration pricing market penetration pricing is used when you want to enter a highly competitive market in order to do that she set up lower lower price compared to your competitors in this situation of IBM did something they do mainly with the cloud services IBM also uses value-based pricing but it pricing is when the price is set up on the customers perception of the value of the product in this situation they use it mainly with their customized business machines that they offer either to restaurants or to retail stores the distribution strategy that IBM uses it’s really really important and they do it through multiple channels among them there are the IBM subsidiaries and the website there are the business partners warranty service providers and delivery service through the website the customers can make the payment they can view the different product and the different services and better select what fits the needs they can also communicate with the with the employees of IBM yeah chat or phone on the other end the business partners such as for example authorized distributors though originally the most traditional way to approach customers for IBM then you have as I said before the delivery service and the warranty proper service delivery service obviously is in charge of delivering the product for IBM but through that they also sell certain type of product such as specifically deliveries when some products needs extra caution when it comes to the warranty services there are mainly in charge of doing the after sales for maintenance or communication with the customers but through that they also offered a third type of product such as specific warranty for specific products to lead its potential customers to these different distribution centers IBM is a mix between advertising and Direct Marketing the advertising is mainly done with a mainstream product through mass communication either via online or prints Mary as well as IBM website on the other end direct marketing is mostly done for new products with existing customers how does it work these customers are contacted when product could potentially feed the need an employee propose explain what are the different characteristic of the product and if they are interesting in it they are redirected toward an IBM subsidiary to complete the payment and finalize the order in the past few years iBM has keeping facing all kinds of challenges and the first is shrinking brand value in a global revenue IBM suffered a massive decline its brand value from 2017 to 2019 dropping from 102 billion to 86 billion and the global RAM revenue declined gradually in the past nine years from 106 billion to 77 billion the most possible reason for the decline in sales and profits is due to IP ins legend sees Hardware which was historically being very profitable is declining steadily while growth in its relatively new SI units has been slowing in another words IBM failed to translate a big amount of investment in R&D into stronger sales and cashflow growth in for many years and the new chance of customer needs is also another challenging ibn is aiming to be top in the hybrid cloud market market in the middle of private cloud centers and public ones like software’s and Amazon’s web services however with increasing accessibility zuv public cloud customers demand for hybrid cloud is shrinking and iBM is facing formidable competitors cloud is an important sector for IBM however Amazon alphabet Microsoft extremely formidable competitors in these markets and others and IBM shows no unique value in the combat game and in the past few years iBM has continuously been involved in all kinds of little education and disputes which cause bad images and devalues the brand value dramatically in March 2019 an investigation reported by Pro Publica showed that IBM had fired as mated 20,000 US employees aged over over 40 in the past five years and received several collective lawsuit hello everyone so now I’m gonna talk about the opportunities of IBM first we have business diversification in various industry so this opportunity is directly linked to the limitation of having a low degree of diversification in the company so the organization will use its strengths such as experience in the manufacturing process and material handling to enter order mark market to leverage this potential another opportunity we have the aliens with firms from different industry or market so this opportunity is focusing on the industry and consumer a trend for technological integration for example goods from other sector are becoming increasingly in the dependent on computing technology such as the automate automotive industry another one another opportunity we have the rapid innovation of a new product so it support the profitability of the company based on its experience in research and development and the power of possessing a comprehensive portfolio of intellectual property another also opportunity we have the IBM’s investment so IBM’s investment in strategic imperative extended its business into a new area of interest so it spent 1 billion dollars to launch a dedicated business unit for walleston and the limit you who is the chairman of IBM claims that the company will be able to produce annual sales of 10 billion dollar within a decade so the company spent 1.2 billion dollar it’s cloud to boost a cloud-based companies so new collaboration including those with Microsoft and Apple may also improve the company with middle war and APSCo development in the cloud IBM also formed the new Internet of Things which is the IOT unit promising to invest a three billion dollar in the company this investment could give IBM a foothold in the becoming IOT market then we have the consumer behavior so new consumer behavior a trend will open up a new IBM market it gives the company an excellent opportunity to create new revenue sources and also to diversify into new product categories also we have a new taxation policy so it can also open up new opportunities for established player like IBM to improve their profitability and finally we have the new environmental policy so it represent an excellent opportunity for IBM to drive whom its innovative technology superiority and capture market share in the latest category of products thank you in the end IBM proposes quite an ideal marketing plan however who was to make a few recommendation to pursue in the future first of all the company is facing a big risk of being copied the product it creates are easy to reproduce therefore we will advise IBM to invest on products that are unique doing so the company will be able to prevent being copied but it also be able to create patterns that will enjoy its leadership second of all we would advise IBM to find any competitive advantages and increase the value proposition IBM cannot compete with leading competitors when it comes to innovation the company’s classified as a match of firm where it only tests its products that are already in the market or as a response to the developments other competitors death for the IBM should find its own unique competitive advantages such as for example optimizing its aftermarket services developing long-term partnership with customers ah they even tried to create new products and innovate instead of containing and enhancing as we discussed in the first part of the recommendation furthermore as discussed in the challenges IBM faces some other strong competitors which are Microsoft Oracle Amazon cetera where these computers are also delivering very high quality products so these represent a thread for IBM since they are not delivering a unique value anymore so it’s highly recommended for IBM to diversify their product portfolio especially in the IT solutions so they can keep creating and providing more value to their customers so now we come today and after a presentation if you have any questions we are here to answer them thank you Up next
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