IBM CASE STUDY 4
IBM took on the defender strategy for its resurgence from the fourMiles and Snow`s Adaptive Strategies. This is a strategy where anorganization seeks to use its existing resources such as finances andhuman capital to control and retain its market share. The resurgenceof IBM was under the leadership of Sam Palmisano who developed abusiness transformative idea to bring IBM back to its former glory.Sam took over IBM at a time when the company had sufficient resourcesto devote to the resurgence. The company focused mainly on the humancapital that it had to win the market (Weigl, 2012). Employees weremoved closer to the clients and the management bureaucracy thatexisted was removed. This is was an improvement of the operations bythe company to bring about efficiency. This enhanced service deliveryto the clients hence winning the market.
The organization recognized that the human capital, besidestechnology would be the differentiator in the market. This workedextremely well and the company recovered and now it makes over 90billion dollars in revenue. The management of the organizationfocused on enhancing and tapping into the existing talent that theemployees have to enhance its operations. The human resourcedepartment at the company is tasked with the responsibility ofensuring that there is constant supply of talented employees (Weigl,2012). If IBM fails, the human resource department is considered ashaving failed. It is within the defender strategy of the company toplace the right employees into the right jobs to ensure there isoptimum productivity.
It is essential to mention that the other strategies are alsoessential. They include the analyzer strategy, prospector and reactorstrategies (Weigl, 2012). However, these other three strategies byMiles and Snow might not be sufficiently effective in an extremelycompetitive market.
Weigl, T. (2012). Strategy, Structure and Performance in aTransition Economy: An Institutional Perspective onConfigurations in Russia. Wiesbaden: BetriebswirtschaftlicherVerlag Dr. Th. Gabler / GWV Fachverlage.