Case1 - MKT 450 11/5/2008 Case Study: IBM A Fading Giant...

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MKT 450 11/5/2008 Case Study: IBM – A Fading Giant Rejuvenates 1. In 1982 IBM faced a decision which delegated the production of software and operating systems to Microsoft and Intel. The positive aspects of this decision is that is provided a new fresh approach to IBM and this is something that IBM benefited from and could not have obtained in any other way at the time because of their policy to only promote from within. By appointing, Microsoft and Intel, two upstarts at the time to these functions it helped IBM because as the case indicates, “IBM had problems getting to market quickly with technological innovations”. Therefore, delegating Microsoft and Intel to software and operating systems reduced the time for the product to get to market. Also, a decision like this perhaps saved IBM capital. With Microsoft and Intel being upstarts IBM was able to appoint the companies for less than creating and implementing the software and operating systems themselves and this was extremely important since the company needed to cut costs with imminent competitors on the rise. Lastly, again with competition in the forefront, IBM needed to find ways to provide new computers at much lower prices and delegating Microsoft and Intel to the appropriate tasks allowed IBM a fighting chance to get new computers out on the market with quality software and a quality operating system. Although, IBM may have initially benefited from their decision to
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Case1 - MKT 450 11/5/2008 Case Study: IBM A Fading Giant...

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