IBM Marketing Strategy Case Study Example

IBM Marketing Strategy Case Study Example

Headquartered in Armonk, IBM is a multinational company was established by Charles Ranlett Flint in 1911 that operates in more than 170 countries. The Computing-Tabulating-Recording Company (CTR) was founded in Endicott. The name of the organization got changed to IBM. 

IBM manufactures and sells middleware, computer software, and hardware. Other than that, it also provides hosting and services in mainstream domains ranging from nanotechnology to commercial devices. IBM Enterprise includes a group of professionals that create, and apply technology, making the world work better.

Inventions made by the enterprise include 

  • Hard disk drive
  • Automated Teller Machine
  • relational database
  • SQL coding language
  • dynamic random-access memory
  • Magnetic stripe card
  • UPC barcode

Since its establishment, IBM has been a business that defines itself by fundamental values, instead of leaders’ products, or technologies. 

IBM (aka Big Blue) ranked among the top 30 companies that got enlisted in Jones Industrial Average. With more than 340,000 employees, IBM is one of the world’s largest employers in 2020.

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Company Insights:- Innovative ideas, and thought-stimulating valuable insights

Mission: It aims to deliver high value to the customers.

Vision: It envisions a global conference for financial services, sales compensation experts, and risk management.

IBM Organizational Structure

IBM makes use of its organizational structure as a strategy to streamline its product development. Structural characteristics of a business permit it to adjust different aspects with the vision and mission. Corporate structure or organizational structure defines the constitution with regards to the pattern, design that impacts processes. 

For instance, IBM organizational structure specifies how the regional offices communicate with each other. Corporate structure also impacts how the company’s employees called the IBMers converse with one another. It also affects managerial decisions, specifically how the strategies get executed through the corporate structure. 

There is no doubt that corporate structure is one of the important variables that dictate how the business should perform, and respond to challenges in the future.

Geographical Divisions

The demographic divisions of organizational structure are based on the importance to acknowledge the need to handle the corporate structure, even if there are changes in the local markets. For instance, has a geographical division to address the issues of a specific region. Geographical divisions in the organizational structure of IBM allow it to run the business effectively despite the intricate nature of the market-based variables. 

IBM is one of the global leaders that uses a mix of demographic, psychographic, geographic, and product differentiation variables. A selective targeting strategy allows the enterprise to make the service and/or products available to meet the needs of customers. 

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IBM’s Distribution Strategy 

Intellectual Property, research and development and Licensed innovation, Incorporated supply chain network, and sales network assume a significant part in IBM’s value-based product delivery to its clients. 

International Business Machines Corporation works in more than 180 nations with a professional group of customer relationship experts, product specialists, advisors, and support groups. It not only helps the organization to develop a long-term business relationship but also empowers them in sustainable business growth and advancement. 

IBM’s Brand equity 

IBM has been positioned as seventh world’s most profitable enterprise in the Forbes magazine list. As per the market capitalization value method, the brand has an estimated worth of $142.7 billion as of May 2016. Initially, the Brand was known for offering hardware systems. With time it got repositioned as a reputable organization providing the clients with IT and connected services.

IBM’s competitive analysis 

The International Business Machines Corporation is working in an exceptionally competitive climate. It competes with rivals across variable sections in the industry. Its rivals vary from a Multinational National Company to small-range and specialty undertakings. 

The organization contends on different categories like innovation, research, and improvement, consultancy, pricing, quality, the range of products and services, IT infrastructure, value conveyance channel, and others. The organization started to work upon its strategy of moving to high-grade business fragments and expanding its abilities through essential acquisitions and ventures. 

IBM’s Market Analysis – 

Emerging fields are the business sectors from where the assets get sourced in most of the business fragments in which IBM works. Developing nations assume a significant part in changing the market dynamics of Factors, for example, work cost, political stability, OEM’s, rivalry between the adversary organizations are influencing the business to a large extent. 

IBM’s target customers are the affiliates, distributors, retail outlets, MNCs, government associations, and so on. As the organization offers a comprehensive range of services, its potential clients differ depending on the kind of item.


IBM follows a product-based organizational structure, indicating the business processes involved. It includes the representation of processes that are involved in distributing, managing and developing, and sale of items. organizational structure is a primary structure that indicates how the company makes use of its opportunities in the IT industry. IBM’s corporate structure has tactics and strategies that encourage competitive product launches.

Product-oriented segmentation strategy in organizational structure focuses on the core business activities that comply with changes in the market. With the help of the Cloud platform, the business addresses evolving needs of the market for cloud-based solutions. The organizational structure of IBM incorporates the following product-based division: 

  • Cloud platforms and technological services
  • International Business Services
  • Worldwide financing
  • Systems

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