Factors that Contributed to the Success of IBM

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Updated: Mar 31, 2023
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Despite IBM Company experiencing several challenges, there are numerous factors that contributed to its success. The transformation was one of the major factors which greatly uplifted the company’s sales and increased its market share, as well as the change of leadership. The disruption of the company’s IT space as previously it has experienced incessant modernizations of the services and products available. IBM has searched for ways in which it can monetize emerging trends in IT segments such as internet things, big data, and cloud computing (Rezaee, 2016).

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IBM has been focusing on how it can bid deal with the cloud computing space because it offers great opportunities for the company, an especially lasting improvement of returns.

The company has established ways in which it can bid contracts with big IT companies like big data, which is a business section that it can use to upsurge returns and market segments. IBM stakeholders are fully committed to implementing their strategies fully. The previous people who were managing the company created slogans that paved the way for various innovations in computations. Despite the company losing its market share on several occasions, the management has always come up with new strategies which have helped IBM in regaining its lost market share. It has effortlessly rebuilt its marketing strategies by working with numerous advertising agencies, which has lifted the company’s brand image (Rezaee, 2016). The company has been developing new brands, and it has developed several plans on smart technology, which highlight the company’s achievements and it also reconnoiters IBM’s future plans.

IBM has constantly changed its business mix so that it can adopt market openings and cost-effective technologies, and this has continuously contributed to the success of the company. IBM has come up with several products which compete with the existing companies as they are of high quality and quantity (Rezaee, 2016). The fruitful projects by the company are the key to IBM’s achievements, also the techniques they practice as well as basic corporative principles.

I believe that IBM’s plan can solve some of the most challenging problems in the world and succeed. This is because it has invested largely in various long-term projects, which have several specialists to come up with better solutions to solving numerous issues. The company’s computing supremacy can solve most of the world’s biggest issues. It has come up with various products like creating programs that can be used to treat cancer in humans and also other technologies which can be adopted when preparing meals and treating other diseases (Aouras & Bouzbid, 2018). IBM has projects which are in progress looking for solutions to numerous problems like strategies to identify and forecast increases in infectious illness, scientific findings of how to deal with food backup food funds, and also creating programs that will promote communal good.

The artificial technology developed by IBM can be used in solving numerous world problems, like illiteracy, poverty, and hunger. It can use its science and technological expertise to design projects which aim at solving the issues in question. IBM can use its digital tools to develop solutions and also establish strategies that can bid partnerships with other organizations to help in solving the issues at hand. Illiteracy can be overwhelmed by educating adults and children through manuals and also by the use of digital tools (Aouras & Bouzbid, 2018). IBM has been choosing numerous projects each year which are aimed at identifying the big problems present in the world and finding better solutions to them.

The biggest competitors of IBM today are consulting and technology firms that use both hardware and software. The firms include; Intel, Xerox, Oracle, SalesForce, and many other companies which are still establishing themselves (Jennings, 2010). IBM mostly competes with cloud services in the business market. This is because they are well advanced and offer better services in IT and other digital services.
IBM is facing numerous risks with its current strategy, and its targets are huge. Therefore, they are not able to solve issues like pollution as well as congestion. However, if they come up with solutions, they have a low success rate, and most of them become obsolete with time resulting in a low success rate (Jennings, 2010).

Therefore, other companies might have come up with better solutions for these problems before IBM. The company faces many issues which involve risk, as it is essential to any business. IBM investors should identify whether the risk is manageable it can change the business direction. IBM is dedicated to transforming several digital tools to the cloud and other technological services despite the lack of assurance about the risks involved (Jennings, 2010). Due to the success of numerous IBM projects, investors have funded the project because it is worth the risk.

IBM has been facing several challenges throughout the years since the business was established. Despite its ups and downs, which are normal for any business, it has been able to come up with better strategies that have expanded the business and claimed a larger market share in the global market. The IBM stock has been rising because it is reliably supplied where it counts. Investors have been noticing this full transformation and therefore being ready to invest in various projects despite the risks involved (Jennings, 2010). The company has changed its financial recording, and now it uses unit sales as well as percentages for the overall returns to calculate its domineering planned results.

The IBM returns have been good sines it is only primary competitor is Microsoft, as both are aiming at combining both cloud segments.
IBM has identified several opportunities in the future and also identified competition from Microsoft, which is also using cloud strategies. In any business environment, competition always transforms to risk. The competition will involve the biggest technological industries as they both use cloud technologies. IBM has developed numerous plans to minimize its risks of capitalizing on its stock. The company has executed an effective transition of reducing the risks which investors might encounter when they capitalize on various projects run by the company (Jennings, 2010). The company should analyze the current trend in the global market to determine what might happen to investors in the future.

Investors should identify various risk factors which might affect the business which they want to capitalize on to avoid being led into a trap. They should identify the products which have fast growth and their dividends over a period of time. IBM’s partnerships with cloud services will greatly improve its returns as well growth of dividends over a specified period of time. Due to this partnership, investors will get more returns from their investments to the growth of their dividends. Risk is an important factor as it determines the success of a business (Jennings, 2010). Risk factors should be identified early in advance, and appropriate measures should be put in place to ensure that the business runs well.


  1. Aouras, H., & Bouzbid, S. (2018). Evaluate the Impact of Breast Cancer Treatment on the Quality of Life of Women With Nonmetastatic Breast Cancer. Journal of Global Oncology, (4_suppl_2), 99s-99s. doi: 10.1200/jgo.18.96000.
  2. Jennings, P. (2010). Managing the risks of Smarter Planet solutions. IBM Journal of Research and Development, 54(4), 1–9. doi 10.1147/jrd.2010.2050540.
  3. Rezaee, F. (2016). Key Determinants of Success to Achieve Sustainable Competitive Advantage (SCA). Archives of Business Research, 4(6). doi: 10.14738/abr.46.2340.
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Factors that Contributed to the Success of IBM. (2023, Mar 31). Retrieved from https://papersowl.com/examples/factors-that-contributed-to-the-success-of-ibm/