Corporate Strategy Case Study

Success of IBM in India

OR

Abstract:
In 1991, the Indian government started relaxing the foreign investment norms and this encouraged foreign IT companies like Electronic Data System (EDS), Hewlett-Packard (HP) and International Business Machines Corporation (IBM) to enter India. Among these, IBM, a multinational computer technology corporation had shown keen interest in establishing itself in the Indian market. Till 2001, IBM witnessed slow growth and started experiencing gain since 2002. In 2005, to compete with the Indian software giants like Wipro, Infosys and Tata Consultancy Services, IBM adopted the Global Delivery Model and with other foreign companies like Accenture, Intel and AMD planning to invest heavily in India, IBM decided to invest $6 million to start several initiatives that would serve to fulfill its vision of becoming a globally integrated company. With the Indian software giants dominating the IT sector and with the entry of other foreign software companies, analysts were skeptical about IBM’s success. Would IBM succeed in its endeavors?.

Pedagogical Objectives:

• To understand the impact of relaxing of FDI norms by the Indian Government
• IBM’s experience in the Indian markets
• Adoption of Global Delivery model by IBM
• IBM’s strategies to succeed in the Indian markets.

Keywords : IBM; Global Delivery Services; Global Delivery Model; e-governance; competition; Market Entry Strategies Case Study; On Demand Model; growth strategy; Intel; TSIL; entry of MNCs