IBM is the world(s dominant manufacturer of mainframe computers and is also a major supplier of minicomputers, computer peripheral equipment, personal computers, networking products and system software. IBM has engineered a successful earnings turnaround in recent quarters, fueled by a substantial expense reduction and an improving sales trend. The company, which once provided the standard by which other computers were measured, has seen difficult times in recent years, and has undertaken severe measures to improve its performance. This research examines the company(s strategic planning in the short and long term, and the company(s outlook for the near future.
The company(s mission is to provide high-quality computers, computer peripherals and software to its customers. During the company(s long history, it has done this through heavy investment in research and development, and through dominating the computer and related products marketplace (Smith, 1994, p. 1). However, the company, which dominated the personal computer market in the early 1980s, lost considerable market share during that decade to the point where it had only an 11 percent market share in 1992 (Smith, 1994, p. 9). Today, the company faces a market of increased competition and a lack of market domination. At the same time, the company(s stock price has fallen precipitously during the early 1990s, from the 140s in 1991 to below 50 in 1993 (Coyle, 1994, p. 1210). Once considered a (safe investment( by both investors and purchasers of its products, the company now finds itself competing for both in ways that it has not had to do in the past.
As a result of the changes that the company went through in the 1980s, it has undertaken a severe program of cost cutting designed to make it more attractive to investors and drive up the price of its stock. At the same time, the company has also undertaken a number of joint ventures with other manufacturers in order to...