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ion ? Key product offerings ? Key customers ? Pricing 1. Background information ? Location ? Management team ? Starting year ? Number of employees ? Era analysis 4 SEC China010821BJIBM GLOBALLY, IBM HAS DECIDED TO EXIT PC BUSINESS GRADUALLY IN THE NEXT SEVEN YEARS Mission ? To lead in the creation, development and manufacturing of the industry’s most advanced information technologies, including puter systems, software, working systems, storage devices and microelectronics ? To translate these advanced technologies into value for our customers through our professional solutions and services businesses worldwide Vision ? To be no. 1 player globally in information products, solution provider and service provider * IBM39。s PC business showed/surprising strength in revenue growth and profitability in the September quarter last year Source: Literature research Strategy ? Shift productoriented strategy to industryoriented development strategy ? Define Emerce as focus of IBM business in China ? Position PC as part of EoN (edge of the ) concept instead of a standalone product ? Gradually exist* PC business in the next seven years globally by selling it to Dell with Dell39。s ponents in return 2023 target ? Increase revenue by 20% * IBM’s PC business showed surprising strength in revenue growth and profitability in the September quarter last year, which would lessen the urgency to exit this business in the near term ite re rch 5 SEC China010821BJIBM 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 6 SEC China010821BJIBM 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 a