IBM Strategy and How Could IBM Improve

¶ … company International Business Machines, known around the world as IBM. IBM began in 1900, and has grown to become one of the world's largest and best-known names in computing and technology.

In 1900, George W. Fairchild formed the International Time Recording Company in New York, which began the foundations of IBM. It incorporated several other timekeeping and computerized scale companies into one, and it continued to grow and merge with other companies throughout its early history. The company began calling itself IBM in 1924, by then, it was already doing business around the world, and it paid its first stock dividends in 1925. In the beginning, the company made mechanical business machines, like timekeepers, and adding machines, later they developed technology for machines like copy machines and other machines. In 1944, they developed one of the world's first computers, and they continued to create technological products like computers throughout the company's history, which they continue to this day.

Like many other high-tech companies in the 21st century, IBM's marketing strategy integrates many more services, from tech support to setting up complex systems, as part of their business plan. Two marketing experts note, "More than half of IBM and Oracle revenue is generated by services."

They continue to highlight the technological advances in the company and their innovations, and they continue to dominate the high-tech industry in many areas. IBM executives have always targeted specific businesses in their marketing efforts (such as small to medium-sized businesses when they first got started, and lately they have been trying to appeal to older computer users as the world population continues to age.

In a surprise move in 2004, they sold off their PC division to a Chinese company, Lenovo, to make it the third largest PC company in the world. IBM retains an 18.9% ownership in Lenovo, and the company markets the PCs under the IBM name, but they are produced in China.

It seems that IBM and its PC division could have retained more credibility by keeping the company in U.S. hands. There is a large wave of negative consumer feeling against many Chinese-made products, because there have been so many scandals and recalls involving Chinese products, such as many unsafe toys being recalled, and the pet food lanced with melamine that killed so many pets in the country. Chinese products are viewed as cheap and poorly made, and that reflects on IBM's lengthy reputation. Personally, if I were involved with decisions at IBM, I would not have recommended this plan for the company.