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IBM's Turnaround and its New Business Model

            
 
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : BSTR107 Electronic Format: Rs. 500;
Courier (within India):Rs. 25 Extra
Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Themes

Turnaround Strategy
Case Length : 22 Pages
Period : 1993 - 2004
Organization : IBM Inc.
Pub Date : 2004
Teaching Note : Not Available
Countries : USA
Industry : Information Industry

Abstract:

The turnaround of IBM under Louis V. Gerstner's leadership is considered to be one of the most remarkable turnarounds in corporate history.

The case details the strategic measures taken by Gerstner to transform IBM from a hardware vendor to a complete IT solutions provider. The case examines IBM's new 'services-heavy' business model and its potential benefits for the company in future.

It also details the issues facing the new CEO of IBM - Sam Palmisano and the measures taken by him in 2002 and 2003 to boost IBM's stagnant revenues and declining profits.


Issues:

» Understand the need to continuously reinvent the business model of a company amidst rising competition and changes in the business environment

» Examine the strategic measures taken by a leader to turnaround a loss making company

» Study IBM's business segments and conduct a BCG analysis

Contents:

  Page No.
Introduction 1
Background Note 1
IBM's Turnaround 3
IBM - on the Growth Track 6
Customer-Centric E-Business Strategy 7
Issues That Remain to be Solved 9
Challenges for the New CEO 10
Exhibits 12

Keywords:

Indian air-conditioner market, Voltas Ltd, Voltas' turnaround strategy, Voltas electro-mechanical projects, Excessive diversification, Indian unitary cooling market, Voltas Big Bang strategy, Indian consumer durable industry

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