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Case #3 : IBM

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Tony Leung

on 7 February 2014

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Transcript of Case #3 : IBM

IBM Customers
IBM does business with:
American government
Chinese government
Walmart (largest revenue company in the world)
ExxonMobile (2nd largest revenue in the world)








IBM does business with the entire Fortune 2000 in one way shape or form between Services, Software and Hardware lines of business.
IBM Products & Services
About IBM
Thomas J. Watson & Charles Ranlett Flint
Endicott, New York
June 16, 1911 (102 years old)
Released first portable computer in 1975
World's 2nd largest technology company
Case #3 : IBM
Team 3
Elanie Bruno
Zac Burger
Tony Leung
Davis Park
Ftuwee Tekeste

Citations
"International Business Machines"
A global leader in hardware, software, services and IT consulting space.
Problem/Situation
Customer Group A
Demands a wide variety of IT products, routine maintenance support, and customized services
Value the relationship with IBM
Willing to pay a premium for the product and service
Customer Group B
Wants high-quality IT products
At a "rock bottom" price
These customers chooses suppliers on that basis
Customer Group C
Demands both quality products and extensive service support
At a "rock bottom" price
These customers will freely switch from different suppliers
Problems
1. How can IBM develop a portfolio of relationship strategies to meet the needs of these customer groups?

2. Some customers in each group are more costly to serve than others. How should such cost differences be reflected in the particular relationship strategies that IBM follows?

3. What strategies can IBM follow to increase the switching costs of customers in Group B or Group C or increase the profits it derives from these customer groups?
Customer segmentation
Measure profitability
Pick and choose customers
CRM enhancements from IBM, businesses can:
Gain faster insights,
Enable real-time decision-making and
Deliver customized experiences
Increase customer loyalty and attract new customers.
Solutions
How can IBM develop a portfolio of relationship strategies to meet the needs of these customer groups?
Customers in each group are more costly to serve than others. How should such cost differences be reflected in the particular relationship strategies that IBM follows?
What strategies can IBM follow to increase the switching costs of customers in Group B or Group C or increase the profits it derives from these customer groups?
Acquiring the right customers
Crafting the right value proposition
Instituting the best process
Motivating employees
Learning how to retain customers
Integrating CRM solutions that are specially designed and priced for businesses, businesses can gain valuable insights from customer data to enhance the customer experience, while adding to their bottom line (IBM).
http://www.quora.com/IBM/Who-are-IBMs-biggest-customers
http://www.ibm.com/us/en/
http://www.channelinsider.com/c/a/IBM/25-Facts-You-Should-Know-About-IBM-458063/
http://www.ibm.com/midmarket/us/en/crm.html
http://www.forbes.com/sites/chuckjones/2013/08/29/ibm-regains-1-server-market-share-position/
http://www.ventures-africa.com/2014/02/ibm-launches-innovation-centre-in-nigeria/
http://spiderbook.com/company/16073/?relationship=CUSTOMER
Full transcript