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10/5/18, 5(54 PMCollection – MSA 603 Strategic Planning for the Admin ...

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Thread: Discussion 3 Post: Discussion 3 Author:

Posted Date: October 3, 2018 7:23 PM Status: Published Overall Rating:

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Alexandria Hixenbaugh

IBM identifies as a company that is innovative and constantly pursuing technological change (IBM, n.d.). It seems their competencies are continuously creating breakthrough and innovative technology, which is used in many different industries including telecommunications (IBM, n.d.). IBM is present in about 19 different industries where they use their technologies to do business. If IBM pursues related diversification, they will most likely be able to use their current skills and resources to enter the telecommunications market. IBM already uses what they call the IBM Cloud which allows for professionals to readily have access to their applications and data centers (IBM, n.d.). If I were in a corporate-level management position, I would consider utilizing the internal new venturing method to enter the telecommunications industry. This way, IBM is able to transfer some of their resources and create a new business unit, broad-band access, to innovate new products (Hill, Schilling, & Jones, 2017).

I believe IBM would be successful in utilizing this strategy because they are not trying to outsource and risk excess spending, and they are efficiently using their expertise across value chain functions to share resources and hopefully save on material and manufacturing costs. Also, I’d guess the future of broad-band access is looking good. I don’t think anyone will ever stop using mobile devices that might require wireless broadband. There may be a risk in IBM entering this huge industry, however, it seems like if they have the capital and resources, they could be successful, if not right away then possibly over time. IBM offers many other products in different industries, which I think just makes them more marketable by appealing to many different types of customers needing different things.

To successfully commercialize these services, I think it would be beneficial to research what customer’s needs aren’t being met by competitors and how they can meet those needs.

Resources:

IBM. (n.d.) Cloud Services & Infrastructure. Retrieved from: https://www.ibm.com/ibm/us/en/?lnk=fab

Hill, C. W. L., Schilling, M. A., Jones, G. R. (2017). Strategic Management: An Integrated Approach, Theory & Cases. Boston, MA: Cengage Learning.

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10/5/18, 5(54 PMCollection – MSA 603 Strategic Planning for the Admin ...

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