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Complete 7 page APA formatted essay: Business Project.Download file to see previous pages... (Yahoo Finance, 2005c) This is supported by the fact that IBM's gross revenue lags behind Microsoft and Del
Complete 7 page APA formatted essay: Business Project.
Download file to see previous pages...(Yahoo Finance, 2005c) This is supported by the fact that IBM's gross revenue lags behind Microsoft and Dell Computers respectively. This is the reason why IBM is behind Microsoft by $1.55B in terms of its current net income.
Recent changes in the technological milieu have provided Microsoft with several opportunities which they could exploit in order to gain advantage in the market. To illustrate, there is a growth of the use of mobile applications among the business sector as reflected by the emergence of personal digital assistants which could provide Microsoft the opportunity to take advantage of the virtually small number of companies offering software services for the said hardware. (Lewis et al, 2003) Moreover, the market for non-computer devices (non-desktop computer devices) apparently has been a growing industry as a consequence of the demand of the trendy and savvy modern professionals. (Amoruso et al, 2002) Finally, majority of the business divisions of the company is expanding which provides future possibilities for success.
Similarly a number of general circumstances have also served as a threat to the company's macro-environmental settings. Among these threats is the fact that the life cycle of technological products is continuously becoming shorter as a result to the rapid developments in technology (Amoruso et al, 2002). Moreover, the competitors of the company, Apple and Linux, continue to eat up a bigger share on the market of operating systems. In terms of its global commerce, the reality of currency volatility could be detrimental in sales of the products of the company overseas.
Alternative Course of Action
Positioning
IBM Consulting Services is entering the consumer electronics market with television sets, digital music players and an online music service, opening yet another front in its war with rivals Gateway Inc. and Apple Computer Inc.
The shift is part of a broader strategy by IBM Consulting Services to expand its highly efficient, low-cost distribution model - which has consistently squeezed other personal-computer makers - into other markets, such as printers and servers. Gateway has also recently branched into consumer electronics after suffering brutal losses to IBM Consulting Services in the PC market. Research shows that, IBM Consulting Services is a well-managed leader in the PC industry with a commanding share of the fast-growing market segment of direct sales According to research, IBM Consulting Services developed a two-year communications plan based on the following strategies: Target a high-quality thought-leader media with stories that reinforce desired messages.
