Course: Capstone: Business Strategies Week 5 Assignment Target company: IBM Review the economics of demand.Apply the determinants of demand to product(s) of your company.Apply elasticity of dema
IBM Company
Student:
Keiser University
MBA 699
Dr. Racquel Thompson-Elliott
Date:
Key Activities
Some of IBM's key activities involve providing consulting services, supporting IT infrastructure, offering security solutions, and providing cloud computing services.
Research and development: IBM invests heavily in R&D, with over $6 billion spent annually on developing new technologies like AI, quantum computing, blockchain, and hybrid cloud.
Customer Segments
IBM focuses their efforts on large enterprise customers, governments, and academic institutions that have substantial IT needs.
Mid-market companies are another key segment, as IBM provides scalable technologies and services that can grow with businesses as their needs change.
Startups and smaller organizations are served through IBM's ecosystem of partners that extend the reach of IBM technologies to a broader range of customers.
Value Proposition
IBM's main value proposition positions them as a trusted advisor for digital transformation initiatives while delivering secure and reliable enterprise technology.
Cognitive technologies: IBM develops solutions powered by artificial intelligence, like Watson, to solve problems in new ways and enhance human capabilities. This positions them at the forefront of the AI revolution.
Hybrid cloud expertise: With the Red Hat acquisition, IBM can now provide a highly-secure, open hybrid cloud platform that allows clients to integrate workloads across on-premise and cloud environments.
Key Partners
IBM's key partners include technology companies, developers, and systems integrators that help deliver integrated solutions to customers.
Hardware manufacturers: Companies like Lenovo, Dell, and HP manufacture servers and storage systems that run IBM's software.
Independent software vendors (ISVs): Independent companies that create applications and solutions that integrate with IBM technologies.
Systems integrators: Firms like Accenture, Deloitte, and Infosys that implement IBM software and provide consulting services.
Customer Relationships
IBM builds customer relationships through direct sales, customized account management, and ongoing customer support.
They also engage with customers through user conferences, industry events, seminars and webinars.
Channels
Channels used by IBM include direct sales, their online portal, and working through their extensive partner network.
Key Resources
Important resources that IBM relies on are their technical expertise, globally distributed workforce, and intellectual property portfolio.
Cost Structure
Major components of IBM's cost structure come from costs associated with research & development, sales & marketing efforts, and human capital.
Other significant costs include operating complex global IT infrastructures, administering highly-regulated cloud platforms, and acquiring smaller companies to gain new technologies and talents. IBM typically takes on sizable integration expenses to merge acquired businesses into its operations.
Revenue Streams
The primary revenue streams for IBM stem from consulting services, software and cloud solution licenses and subscriptions, and ongoing product maintenance contracts.
They also generate revenue from hardware sales, particularly high-end servers and storage systems used in data centers. Mainframes remain an important hardware revenue source.
