Case Study International Business Essay Example | Topics and Well Written Essays - 500 words

Case Study International Business - Essay Example int in time, the only way of achieving such a goal was to integrate with the market in the same way that IBM was operating within the domestic market. One of the main reasons for why this classical approach was no longer working for IBM as soon as the early 1990s had to do with the fact that the world was becoming increasingly globalized. In addition to the collapse of the Soviet Union, the interaction and integration between economies and business entities throughout the world had been on a dramatic increase; so much so that continuing to operate by the classical model with no longer yield the same level of profitability that IBM had been able to appreciate in the past. Naturally, in order to survive in this new climate change, IBM saw it necessary to integrate a more global Outlook. In much the same way that certain businesses fail due to the fact that they are not able to change with the times, IBM’s on the necessity of change and instantly integrated with it so that the risk of not changing could be ameliorated. The first and most obvious strategic advantage to IBM of globally integrating its strategy has to do with the fact that it will be able to take advantage of the unique aspects that certain markets exhibit. For instance, within China, a relatively low cost level of production has been established. By means of comparison and contrast, expertise and development has been created within India. By utilizing these unique realities within the global market, IBM’s strategy can be more closely honed to the expertise that it can draw from as well as the unique dynamics and demands of its consumer base. From an analysis of the framework, it is clear and apparent that IBM is wholeheartedly pursuing a level of diversification, change, globalization, and development. Even though the industry could clearly be categorized as an established firm that has been able to accrue a wide level of profitability from various consumers in the past, it understood the fact