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prising strength in revenue growth and profitability in the September quarter last year, which would lessen the urgency to exit t is business in the near te m r : it r t r r r SEC China010821BJIBM 6 Source: IDC Desktop PC market share Percent of units shipment (m) 2 2 . 12 9 . 86 2 . 95 1 . 69 . 66 . 13 . 85 . 05 . 14 . 0Others IBM Great Wall Founder Legend 100%= 2 1 . 51 5 . 22 8 . 92 1 . 81 7 . 11 7 . 51 7 . 12 3 . 26 . 78 . 87 . 54 . 36 . 44 . 0Growth rate percent 99 00 99 00 Growth rate percent 100%= Others Founder Dell Acer Legend IBM Toshiba Notebook market share Percent of units shipment (m) IBM’s market share IBM KEPT ITS MARKET POSITION IN NOTEBOOK, BUT ITS DESKTOP PC BUSINESS FAILED TO CATCH UP WITH TOTAL MARKET GROWTH SEC China010821BJIBM 7 PRODUCT/MARKET 4. Value chain strategy 5. Organization and ownership 6. Financial performance ? Focus on – Marketing, advertising and promotion – Distribution (channel and sales force) ? Organization structure ? Ownership structure ? Sales ? Profit 2. Strategy 3. Product /market ? Mission ? Vision ? Corporate strategy ? Market position ? Key product offerings ? Key customers ? Pricing 1. Background information ? Location ? Management team ? Starting year ? Number of employees ? Era analysis SEC China010821BJIBM 8 IBM IS RIGIDLY AND AGGRESSIVELY IMPLEMENTING TOTAL SOLUTION AND SERVICE PROVIDER STRATEGY IN PRODUCT OFFERING Key product offerings Source: Literature research Product category Product category Desktop PC Notebook ? NetVista mercial PC – NetVista A40 – NetVista A10 – NetVista A206269BSC – NetVista A20634587C/634586C ? NetVista Multimedia PC – NetVista X40i – NetVista A60i – NetVista A40i – NetVista A20i21949DC/219415C – NetVista A20i219755C/21978DC – NetVista A10i ? ThinkPad A series ? ThinkPad T series ? ThinkPad X series ? ThinkPad i series Source: literature research SEC China010821BJIBM 9 IBM IS PARTICULARLY STRONG IN GOVERNMENT AND SMES, BUT WEAK IN HOME AND EDUCATION, THE TYPICAL LOCAL PLAYERS’ TERRITORIES Source: IDC Sales by customer segments Percent of units shipment (000s), 2020 1 5 . 73 5 . 44 . 88 . 71 5 . 31 7 . 72 2 . 71 4 . 92 3 . 81 4 . 71 0 . 96 . 74 . 3 4 . 2Small office Home 100%= IBM Market average 264 6,564 Small business Education Medium business Government Large business 3 6 . 93 1 . 42 3 . 52 3 . 61 2 . 3 2 2 . 21 8 . 11 0 . 9Small office Home 100%= IBM Market average 83 484 Education Government Large business Small business Medium business D