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Meanwhile, IBM, who was Intel’s star customer, decided to produce own proprietary components. This was an inflection point for Intel. It partnered with Compaq and Microsoft, to break the hegemony of IBM. Though Microsoft products did not

| Objectives are integrated within TV, print and direct mail. Internet focuses on building consumer relationships rather than getting awareness. Bonds did not show any objective on its package design.

In the seven years (since 1994), that Lou Gerstner reigned over IBM, the company’s earnings per

IBM needs to grow revenue and stay competitive in the dynamically changing computer marketplace of the 1990’s by maintaining technological leadership and accepting the organizational transformation which needs to be undertaken for them to excel. IBM needs to recapture their previously held powerful position in the personal computer and microprocessor markets and regain value in the company which will increase its stock value and competitive advantage in the marketplace.

Q5. Do you think IBM’s advertising campaign changed too often over the past 11 years? Were the changes made because the campaign were not working well or was it an intentional evolution in the advertising and branding message IBM wanted to communicate?

IBM Market Leader in Mainframe –market share 61%, starts PC business in ’81, in 2 yrs market share is 42%

Personal computer business naturally can be classified as a sub component of business solutions provider that IBM’s positioned for. The tagline indeed shows that for every transactions made, IBM has something to deal with it to make things easier, meaningful and on advantages. The decision to relinquish interest in the above mentioned sector doesn’t put IBM in any advantage if it decided to discontinue advertise in mass media. On the contrary, by resuming the current practices it helps maintains and restore the brand name that could probably enhance the brand loyalty.

The next strategy was to return to an old business practice which was Apples premium prices. But this strategy, like the others, did not boost the company’s competitive advantage.

On the other hand, an important part of a firm’s market program is developing, building and conveying a brand image in marketing communications to influence consumers’ perceptions and create loyal customers. According to Kitchen et al. (2004), “IMC is to enable various messages from different communication channels coming together to create a coherent corporate and brand image”. Furthermore, IMC has been a business strategic process that could contribute to build brand value and affect the consumers’ perception of the brand (Schultz, 2004; Madhavaram et al., 2005), this can change consumers’ awareness and loyalty. Similarly, Reid (2005) provides support that IMC plays an important role that makes company more efficient in building and maintaining brand image and customer relationship. That is, effective communication can facilitate the formation of brand awareness and a positive brand image in the consumer’s mind. In other word, brand image

Question 1. What competences has IBM had to invest in arising from its transformation from a ‘product-centric’ to a ‘service-centric’ organization?

However, with the introduction of new technologies and advances in information technology communication has been completely revolutionised and same has impacted in organisations in there IMC strategies. “For IMC to really take hold, old assumptions must exit, assumptions about the role of advertising and sales promotion, about the organisation of advertising and public relations departments, about agencies and what they do, about the media, and most of all accountability” (Schultz et al. 1994).

Various people would think marketing would not be key within businesses, however, businesses require customers so that revenue can be generated and they can branch out to different countries. TV advertisements along with commercials and posters are used by companies so customers can see what they are offering. In addition, countless hours are put into finding target audiences and board meetings where concepts can be formed and distinguished. Marketing has shown to be a key factor in businesses but does not compare with the supremacy that human resources and finance embrace in the organisation.

Prior to their cultural change that took place in the early 1990’s, many would have said that IBM was on a fatal downhill slide. At this point they were beginning to become obsolete. IBM at one point was among the leaders within the world for hardware/software development and information technology services, but all divisions within the organization were run independently from one another. They were not a unified enterprise. To solidify this even further, “rather than working together as a team, divisions competed against each other both internally and in the field” (DiCarlo, L., 2002).

IBM has weaknesses in the transformation of its business model. It is lack of flexibility in the transition because of its large company

Over the past five years, IBM has quietly transformed itself into a "software, solution and services" company. With the transformation from a hardware vendor to a solution provider, it has entered the area of consulting services.