IBM International Business Machines International Term Paper

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Also, IBM neglected gaining a more dominant position in the nascent industry in that period by allowing another corporation to take over the business of programming the new computers. Therefore, IBM missed this incredible opportunity which might have granted the company a dominant position on the market at that time.

IBM has shown its innovation capabilities not only in technological areas, but in strategy models also. The company's negotiation strategy became a successful model followed by enterprises all over the world, regardless of their object of activity, size, or environmental conditions. IBM developed a negotiation process that may be applied in any area. The IBM model is based on relating differently with each client, by adapting strategies according to the client's profile, behavior and requirements and developing a strategy based on these traits. IBM strategists have identified several client types: the businessman, the optimist, the pessimist, the hesitant, the impatient, the impulsive, the arrogant, the suspicious, the grumpy, and the false one.

The IBM strategic negotiation model is based on very coherent and very well designed steps so that they lead to closing the deal. The IBM model has the following phases: establishing contact, researching the needs and buying motivations, presenting the product, handling objections, obtaining consensus, closing the deal.

IBM diverse holdings

The International Business Machine Corporation has always promoted diversity, even when it is related to IBM International Holdings. IBM International Holdings has branches spread all over the world. The diversity of IBM holdings offer the company a larger series of opportunities, in various areas. This way, the company can expand towards various areas of activity.

However, in exchange of diversity and the advantages it presents, there is a certain disadvantage: the diversity of IBM's holdings jeopardize their control, which might become defective in certain cases, unless the adequate measures are taken.

Future outlook for IBM

The enterprises future is based on collaborative thinking (IBM, 2006). The internal changes for IBM will refer to the organization itself, and not on its employees, as did the previous strategies for IBM. However, innovation and research will still be the most important aspects at IBM, since the company brought about 200 business and technology students to its various research labs across the world (Metz, 2003).

The IBM Business Consulting managing partner Ginni Rometty stated that IBM will continue to acquire business-process-outsourcing service companies in the future: "it's reasonable to conclude that our strategy going forward would link acquisition to our high-value space" (McDougall, 2005). IBM technology will be used for improving the operations of business-process-outsourcing operations that the company will acquire in the future. Besides improving these operations, IBM specialists are thinking about making them uniquely different also.

IBM's CEO has a very unique overview on the company's future strategy: "the Internet did change everything (the crash of the New Economy notwithstanding). In a hyperconnected world, IBM's clients needed to become "on demand" companies, their every business process exquisitely calibrated to respond instantly to whatever got thrown at them. And to help them, IBM would have to do exactly the same thing," the IBM CEO stated.

The company's future strategy will focus on:

Building client partnerships - key clients will benefit from ongoing, collegial relationships with the company, based on mutual strategic interests that will reward both the clients and the company. This is called a win-win strategy.

Collaborative influence - the interdependence created between the company an its clients will build strong commitment across organizational boundaries to a common purpose

Embracing challenge - building in others the belief of creating and innovating the business

Enabling growth - changing the systems and processes that interfere with growth and performance

In the future, IBM will invest in even more in its operations: hardware, software, services, financing, research, and technology. IBM's business model will continue to support two main goals: helping the company's clients to succeed in delivering business value by becoming more efficient and competitive by using business insight and information technology solutions; and continuing making strategic investments in services and technologies which present the highest long-term growth and profitability potential based on the value delivered to the company's clients. Also, the company will not neglect its employees and the communities it operates in.


IBM, as one of the largest, oldest, and most successful enterprises in the world, has always been focused on innovation. The company's determination for creating innovative, high-value products and services recommends it as one of the most successful corporations worldwide. The company even sacrificed its incomes during World War II for developing its research activity, which led to the company's future success and leadership on the global market.

The company represents a model not only in technological areas, but also in management in strategy related domains, as its strategies are often applied by various companies all over the world, regardless of their object of activity, size, or environmental conditions.

IBM led the way in many areas. It also contributed, and it continues to contribute to technological development worldwide. IBM sets an example of development itself. After years of stagnation, the company has reinvented itself in the 1990s, changing its direction from hardware to software and consulting.

The company has been reinvented itself ever since, by renewing periodically its portfolio of products and services. The company expands its portfolio of products and services, but it also exits the products that do not present growth potential for the company on the long-term. This is why International Business Machines Corporation is such a supple and flexible company, despite its age, size, and great portfolio.

Reference List

IBM's strategy. Management discussion (2005). International Business Machines Corporation and Subsidiary Companies. Retrieved April 22, 2007 at

The future of the enterprise (2006). IBM United States. Retrieved April 22, 2007 at

Metz, Cade (2003). A Glimpse of IBM's Future. PC Magazine online. Retrieved April 22, 2007 at,4149,1216006,00.asp.

McDougall, Paul (2005). IBM's Future Is in Business-Performance Transformation. InformationWeek online. Retrieved April 22, 2007 at

Tischler, Linda (2004). IBM's Management Makeover. Fast Company Magazine online. Retrieved April 22, 2007 at

IBM (2007). Wikipedia, the free encyclopedia. Retrieved April 21, 2007 at

History of IBM (2007). Wikipedia, the free encyclopedia. Retrieved April 21, 2007 at

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