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- Operations- Efficient operations and effective way of completing

projects in a given time slot help improves the way work is carried out in a cost

effective way.

- Outbound Logistics- Use of efficient ways to deliver products like personal

computers, laptops, and also IT services which include design and development of

different software’s.

- Marketing- Targeted advertising to the niche market and low price advertising

with high volume sales to the markets of personal computer buyers.

- Services- Follow up services through external outsourced channels and cost

effective use of spare hardware.

IBM Intensive Strategies (Intensive Growth Strategies)

- Product Development (Primary Strategy).

- Market Penetration (Secondary Strategy).

- Market Development (Supporting Strategy).

- Diversification (Supporting Strategy).

6.3 IBM Current Situation, Problems and Objectives

6.3.1.Revenue Streams

Despite a thirteenth straight decline in sales, IBM continues to invest in cloud technology

and data analytics as strategic imperatives. The company’s software business is

responsible for a big part of the drop in sales while the aforementioned categories

contributed $25 billion and represented 27% of IBM’s total revenue in 2014 alone. IBM

investors are reassured with focus on new growth areas will offset consulting business

losses.

Under Rometty’s leadership IBM has shifted focus towards its membership-based cloud

and data services, which it markets through its web platform. With over 1,500 clients

that consist of small and medium-sized businesses worldwide – a significant portion of

the company’s earnings are contributed to service and maintenance fees. IBM’s service

packages are currently sold in an annual subscription format.

By : Enas Mekki Managing Intellectual & Human Capital