IBM: An Overview of the Company and Its Products and Services

Introduction 

Companies operating in international business environment need to have effective strategies and understand their different markets so as to offer products that meet the needs and demands of the customers. The International Business Machine Corporation (IBM) is an American multinational technology company with operations in different markets and countries in the world. In this part of the final project, the paper provides an overview of the International Business Machine (IBM) and the products and services that it offers. The paper also discusses the operations of the organization in a certain region of the world based on its conditions. 

Description of IBM 

Incorporated in 1911, the International Business Machine Corporation (IBM) is one of the leading integrated technology solutions providers in the world and operates in more than 170 countries. The firm was founded in 1911 when four different firms merged to form the Computing-Tabulating-Recording Company that changed its name in 1924 to IBM. IBM manufactures and sells computer hardware and software, and offers hosting and consulting services in many areas that range from computers to nanotechnology (Reuters, 2018). IBM is one of the biggest research organizations and holds the largest number of patents in the United States. IBM employs over 380, 000 people in its operations around the world. Headquartered in Armonk, New York, the international firm is credited for some of landmark historic inventions that changed the world of technology; including the automated teller machine (ARM), the floppy disk, and the hard disk drive (IBM, 2018). Other inventions by the firm include the dynamic random-access memory (DRAM), the magnetic stripe card and the SQL language programming. IBM is organized into five primary segments that include cognitive solutions, technology services & cloud platforms, global business services, global financing, and systems. 

Vision and Mission of IBM 

IBM’s mission statement is striving to lead in the creation, development and manufacture of most advanced technologies that include computer systems, software, and networking, storage devices and microelectronics (IBM, 2018b). The firm asserts that its aim is to translate these technologies into value for its customers through the provision of professional solutions, services and consulting. As such, IBM states that its mission is incorporated in the values that it practices; dedication to each client’s success through innovation that matters for the firm and the world (IBM, 2018). Further, the firm values trust and personal responsibility in all its engagements and interactions as it builds relationships. 

Strengths and Weaknesses of IBM in its International Operations 

Strengths 

Through the SWOT framework analysis, the International Business Machine Corporation (IBM) demonstrates its string areas and weak points related to its global business activities. Strategic internal growth factors that support and promote the firm’s resilience and continued positive performance include its strengths in key areas. These include it brand value that is among Fortune 100 brands in the Brand Finance report of 2016. The IBM brand is valued at over $31 billion. Secondly, IBM’s business model is its second source of strength as the firm focuses on two components of long-term growth strategy (Sun, 2015). The firm assists its clients to be more innovative, efficient and competitive through the use of business insight and IT solutions. Further, the firm provides long-term value to its shareholders by developing superior capabilities in service software and systems’ provision. Thirdly, IBM strength lies in its ability to being up to date as it ensures that it responds to the latest technology demands. Fourthly, IBM’s strength lies in its data analytics. The New York-based spends about one-third of its R&D on data analytics and cognitive computing and generates over $17 billion in earnings from data analytics. Again, IBM’s middleware market is also another source of its strength as it controls about 30% of the market share (Bhasin, 2018). Further, IBM’s research and development (R&D) is a source of its strength as the firm invests in the R& D to develop tomorrow’s business solutions by focusing on high-value opportunities. Therefore, by focusing on its strategic imperatives like data analytic, R&D and cloud computing service among others, IBM is strategically positioned in its international business to remain competitive. 

Weaknesses 

While the firm’s strategic initiatives have shown tremendous growth, its core businesses like global technology services and global financing and software have declined in the recent past. Weak client spending, unstable software demand and divestments in lower business margins are weak areas in relation to the firm’s global activities and overall growth (Bhasin, 2018). Further, overdependence by the firm on large businesses and enterprises is also a source of weakness. In addition, a drop its brand value and several litigations and disputes pose a negative image of the multinational and are areas of weakness in its global operations (Sun, 2015). 

IBM Activities in the Middle East 

IBM’s global expansion strategy has enabled it to operate in over 170 locations or countries in the world. One of these regions is the Middle East. The American integrated technology firm has continued to increase its presence in this region by opening new offices like in Kuwait and creating new partnerships with other organizations (Nagraj, 2015). Through specialized and customized IT solutions, IBM has provided different products to consumers; especially large organizations like banks and airlines. In 2015, IBM signed a multimillion dollar deal with Etihad Airways to offer integrated technology solutions for ten years to the airline (Etihad Airways, 2015). Imperatively, IBM continues to expand its presence in this region because of several factors that have made it attractive to foreign direct investment (FDI) (Afonava, 2018). The region is endowed with natural resources because of its oil resources as it has largest oil reserves in the world. The Middle East’s economic growth and infrastructural development have been one of the biggest attractions to foreign firms with governments that support FDI ventures (Kupper, 2018). The increased technological integration of government services in these countries implies that IBM will continue to offer solutions to both public and private organizations for long-term sustainability. Most of the FDI policies in this region are investor-friendly while governments have attained political stability in most parts of the Middle East (Augustine, 2018). 

References 

Afonava, D. (2018) IBM QRadar tuning for a Middle East Bank. Retrieved from 

https://www.scnsoft.com/case-studies/ibm-qradar-tuning-for-a-middle-east-bank 

Augustine, B. D. (2018). Middle East leads the world in angel investing. Retrieved from 

https://gulfnews.com/business/sectors/investment/middle-east-leads-the-world-in-angel-investing-1.2235323 

Bhasin, H. (2018) SWOT Analysis of IBM. Retrieved from 

https://www.marketing91.com/swot-analysis-ibm/ 

Etihad Airways (2015) Etihad Airways signs US 700 million technology services cloud 

collaboration with IBM to transform global operations. Retrieved from https://www.etihad.com/en-ke/about-us/etihad-news/archive/2015/etihad-airways-signs-us-700-million-technology-services-cloud-collaboration-with-ibm-to-transform-global-operations/ 

IBM (2018) Our Values at Work; Retrieved from 

https://www.ibm.com/ibm/values/us/ 

IBM (2018b) About IBM. Retrieved from https://www.ibm.com/ibm/us/en/ 

IBM (2018c) About IM Values. Retrieved from https://www.ibm.com/ibm/aw/en/ 

Kupper, J. (2018) Guide to Investing in the Middle East. Retrieved from 

https://www.thebalance.com/guide-to-investing-in-the-middle-east-1979045 

Nagraj, A. (2015). Tech Firm IBM Expands ME Presence, Opens Kuwait Office. Retrieved from 

http://gulfbusiness.com/tech-firm-ibm-expands-presence-opens-kuwait-office/ 

Reuters (2018) International Business Machines Corporation (IBM) Profile. Retrieved from 

https://www.reuters.com/finance/stocks/company-profile/IBM 

Sun, L. (2015) SWOT Analysis of International Business Machines Corp. Retrieved from 

https://www.fool.com/investing/general/2015/05/07/swot-analysis-of-international-business-machines-c.aspx