MARKET EVOLUTION

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WHAT IS MARKET EVOLUTION?

• CHANGE IN NEEDS OF CONSUMERS• CHANGE IN COMPETITORS• CHANGE IN TECHNOLOGY• CHANGE IN CHANNELS

KEY TO SUCCESS-CHANGE

PRODUCT AND BRAND

POSITIONING

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IN 1993,IBM POSTED US$8 BILLION LOSS-BIGGEST IN AMERICAN

CORPORATE HISTORY

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• ORIGINATED IN 1911• 12 RESEARCH

LABORATORIES WORLDWIDE

• RANKED 31st LARGEST I N TERMS OF REVENUE BY FROBES FOR 2011

• RANKED 2ND IN TERMS OF LARGEST U.S FIRMS IN TERMS OF NUMBER OF EMPLOYEES IN 201 BY FORTUNE

• NET PROFIT EXPANDED FROM 9% IN 2004 TO 16.5% IN 201305/02/23 Template copyright 2005 www.brainybetty.com 5

HOW THIS TURNAROUND HAPPENED?

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STEPS TAKEN TO PUT THE JOURNEY ON RIGHT TRACK

• PUTTING EFFORTS TO PUT BUSINESS GENUINELY GLOBAL

• FULL TRANSFORMATION OF PORTFOLIOS

• EMPHASIS ON BEING THE MARKET LEADER NOT A MERE SURVIVOR

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IBM TODAY….

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COMPLACENCY IS BUSINESS KILLER

IBM REINVENTED ITSELF AND FOUND ITS WAY BACK.IN TOUGH

TIMES GOAL SHOULD BE TO SUCCEED NOT MERELY SURVIVE.

EXAMPLE ….• CEO OF IBM DURING

GREAT DEPRESSIN OF 1930s WAS THOMAS WATSON JR.

• HE CONTINUED TO INVEST IN PEOPLE,MANUFACTURING, AND TECHNOLOGICAL ADVANCEMENT DESPITE DIFFICULT ECONOMIC TIMES

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AS A RSULT…..THIS BOLD MOVE OF IBM PAID OFF AND IT OUTPERFORMED

DURING THAT TOUGH PERIOD

IBM SHOWS THE WAY TO SUCCESS DURING TURBULENCE

PERIOD

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INVESTMENT IN ECONOMIC DOWNTURN

• IT’S AN OPPORUNITY TO EXPLORE THE UPSIDE OF INCREASING INVESTMENT

• INCREASED INVESTMENT CAN RESULT IN INCREASED REVENUES

• INCREASED INVESTMENT CAN RSULT IN INCREASED MARKET SHARE BY TARGETING WEAKENED COMPETITORS

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VISION TO SUSTAIN,GORW AND LEAD:PRODUCT LIFE CYCLE

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PRODUCT HAS DIFFERENT LIFE CYCLE STAGES AND

REQUIRES DIFFERENT MARKETING,FINANCIAL,MAN

UFACTURING AND HUMAN RSOURCESIN EACH LIFE-

CYCLE STAGE

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LACK OF THEVISION CAUSED IBM’S

DOWNFALL IN 1990s

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IBM’s FAILURE IN 1990s

• IBM FAILED TO DELIVER WHAT PUBLIC WANTED.

• IT’S MANAGEMENT FAILED TO MAKE SIGNIFICANT COST REDUCTIONS,BUILD A SOLID PRODUCT LINE

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REVIVAL OF IBM

• APART FROM FIXING PREVIOUS PROBLEMS INTERNET EXPLODED

• IBM SHIFTED FOCUS ON PROVIDING INTEGRATED SOLUTIONS FOR CONSUMERS

• LAUNCH OF DEEP BLUE ALSO RESTORED BRAND IMAGE

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IBM HAS EXPANDED INTO SERVICE SECTOR WITH DATA ANALYSIS,CLOUD COMPUTING COGNITIV E COMPUTING

IT WILL HAVE SUCCESS IN NEW VENTURES BECAUSE NOT ONLY IT RESPONDED TO EVOLVING MARKET NEEDS,SAW THE ADVENT OF TECHNOLGY AND SCRAPPING THE DECLINING PRODUCT AND DIVERTING THE RESOURCE TO NEW VISIN

IBM SMARTER PLANET

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SUMMARY

• MARKET EVOLUTION• IBM• COMPLACENCY IS BUSINESS KILLER• INVESTMENT IN ECONOMIC

DOWNTURN• PRODUCT LIFE CYCLE• REVIVAL OF IBM

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DICLAIMER Created By ANKIT RAJ,JADAVPUR

UNIVERSITY KOLKATA during marketing management internship

under Prof. SAMEER MATHUR ,IIM LUCKNOW

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