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Growth Strategies Case Study

Case Title:

IBM’s “Mach 1” Project: The New Growth Driver?

Publication Year : 2005

Authors: Shalini, Sumit Kumar Chaudhuri

Industry: Information Technology and IT Enabled Services


Case Code: GRS0052

Teaching Note: Not Available

Structured Assignment: Not Available

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Since the late 1990s, IBM (International Business Machines) has been losing market share in its core hardware business with a major portion of its revenues coming from software and services divisions. To improve its hardware business, a new project named Mach 1 was implemented in 2000. The project started yielding positive results from the last quarter of 2000, and for the first three quarters of 2004 the revenues from IBM's hardware division has increased by 9.4% while that from its software has increased only by 2.8%.

Pedagogical Objectives:

  • To highlight the contribution of IBM's Mach 1 project in making the hardware business the new growth driver of IBM
  • To discuss IBM's Mach 1 Project.

Keywords : IBM (International Business Machines); Mach 1; Hardware business; e-Server; Server market; Growth Strategies Case Study; IBM server business; Dell; Hewlett Packard

Contents : 
About Mach 1
Hardware Business: Spearheading IBM’s Growth
IBM’s Hardware Sales
IBM’s e-Server
The entire IBM eServer line shares the best attributes of mainframe
IBM’s eServer Portfolio at a Glance

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