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In: Business and Management

Submitted By RosalieR
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INTERNATIONAL BUSINESS MACHINES (IBM)

International Business Machines (IBM) is a leadingcompany in global technological products and services. It specializes in services, software, systems, fundamental research and related financing. This mix of businesses and capabilities together provide integrated solutions to the company’s clients (ibm.com).

IBM Business Strategy

In keeping with the business strategy perspective, an organization’s competitive advantage lies in its ability to produce or get resources and competences, "take a strategic position in a market and implement a competitive strategy that takes into consideration the opportunities and threats in the external environment” (Porter, 1980). Applying a business strategy that is coherent increases competitive advantage by influencing organizational outcomes and creates superior performance. IBM has successfully incorporated this perspective. The 2014 Annual report states that IBM’s strategy continues “to be one of innovation and a constant drive to deliver higher value for our clients”. This global strategy is positioned on three pillars: data, cloud, and engagement.

Pillar 1 - the company will use data to transform industry and professions. It reads: “We are making markets by transforming industries and professions with data”. According to IBM data is increasing capability, rapidity and diversity in an exponential manner and is emerging to be a novel global natural resource. It has embraced data as the new heart of competitive advantage. Pillar 2 - cloud, offers high-value results and has experienced growing client demand that has caused speedy growth. In 2013 revenue grew by 69% and the run rate for this service doubled that of 2012. Revenue grew by 60% in 2014 to $7 billion. This pillar states that: “We are remaking enterprise IT for the era of cloud.

Pillar 3 - engagement,...

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