In: Operations Management
Read the “IBM at the Crossroads” case. Answer the following question fully.
Will continuing the existing strategy enable IBM to achieve and sustain a competitive advantage? (200 words minimum)
Will continuing the existing strategy enable IBM to achieve and sustain a competitive advantage?
Currently the main strategy for IBM is cost leadership. The common techniques in Michael Porter's model are what businesses use to achieve strategic advantages. IBM has changed its standardized approach over the years, it should be worth noting . The organization originally used the emphasis on distinction as its competitive generic approach. Differentiation emphasis means differentiating goods to consumers by quality or interest, and concentrating on a particular niche or market segments. The original policy of IBM in this situation was to focus on companies as its intended clients, and thus the name of Multinational Business Machines.
IBM is a big name in the tech and hardware industry that has seen numerous ups and downs but has endured during this period. CEO Rometty is doing her hardest to use tactics to achieve strategic advantages, but that does not work this way. At many workers in the company, automation and robotics affected jobs. IBM now incurres regular defeats. Therefore the continuity of the current plan won't work well.
In the case study of IBM crossroad the emphasis was primarily on two things. First was higher profit margin, which discourages consumers from purchasing goods and is also frustrated with increasing pressures of domestic market reliance on foreign sales. IBM uses various methods to achieve comparative edge, but we don't go there. High interest, low income, discontent among workers all raise pressure on management. The Business intends to enter emerging economies through global expansion. The organization also outsources its content production and distribution to specialist companies to maximize cost-efficiencies.
****Please please please LIKE THIS ANSWER, so that I can get a small benefit, Please****