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The paper provides a summary of the IBM business and analyzes the marketing mix as well other key related concepts such as web marketing activities, relationship marketing activities and market segmentation. The paper focuses on the global context and its e-business models and also considers how the marketing strategy helps the business to achieve its overall business and corporate level strategies.
IBM: The Business
IBM: The Business
From the Paper:"In considering the company's overall business strategies it may be useful to consider the three generic strategies for competitive advantage outlined by Porter (2004). Porter highlighted three generic strategies for creating competitive advantage based around cost leadership, differentiation and market focus. The relevance of such theory is that in order for either of these strategies to be an effective source of competitive advantage the strategy will require the correct selection of elements in the marketing mix in order to support a given strategy. In relation to IBM's generic strategy the 2008 annual report would suggest that the company is currently moving away from a cost leadership model by divesting from commodity markets such as hardware and moving into value added activities such as software and services. This is represented by the proportional contribution to profitability of each of the business units between 2000 and 2008, were in 2000 hardware accounted for 24% of the company's profits and software 25% this figure has shifted to 9% and 40% respectively in 2008 (IBM 2009). It is important to consider at this point that this represents an active decision on the behalf of IBM to change its product mix rather than a direct shift in the market. As such one may consider that IBM is largely adopting a generic strategy of the differentiator and must as such adopt the relevant marketing strategy and marketing mix."
Sample of Sources Used:
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Cite this Analytical Essay:
IBM Marketing Strategy (2011, December 28) Retrieved June 06, 2020, from https://www.academon.com/analytical-essay/ibm-marketing-strategy-149720/
"IBM Marketing Strategy" 28 December 2011. Web. 06 June. 2020. <https://www.academon.com/analytical-essay/ibm-marketing-strategy-149720/>