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Valuation of International Business Machines Corporation Frank Huang . IT Consulting Industry Overview. IT Consulting in the US
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Valuation of International BusinessMachines Corporation Frank Huang
ITConsultingIndustryOverview IT Consulting in the US • provide the following services to client companies: writing, testing and supporting custom software; planning and designing integrated hardware, software and communication infrastructure; and on-site management of computer systems and data processing facilities.
Sector Performance https://eresearch.fidelity.com/eresearch/markets_sectors/sectors/industries.jhtml?tab=learn&industry=451020
Key Economic Drivers • Corporate profit • Demand from finance and insurance • Private investment in computers and software • Government consumption and investment
Supply Industries • Communication Equipment Manufacturing • Computer Manufacturing • Computer Peripheral ManufacturingInformation • Software Publishing
Demand Industries • Wholesale Trade • Information • Finance and Insurance • Healthcare and Social Assistance • Public Administration
Majorcompetitorswithintheindustry • Accenture • Amazon.com, Inc. • Computer Sciences Corporation • Fujitsu • Hewlett-Packard Company (HP) • India-based service providers • the consulting practices of public accounting firms
BriefintroductionofIBM • incorporated in the State of New York on June 16, 1911 • InthecomputermanufacturingandITconsultingindustries • Creates value through integrated solutions that leverage information technology and deep knowledge of business processes • IBM solutions reduces a client‘s operational costs or enablesnew capabilities that generate revenue
Corporate recognition and brand • In 2012, Fortune ranked IBM the • No. 2 largest U.S. firm in terms of number of employees, • the No. 4 largest in terms ofmarket capitalization, • the No. 9 most profitableand • the No. 19 largest firm in terms of revenue. Globally, the company was ranked the No. 31 largest firm in terms of revenue by Forbes for 2011.
Major operation components • The company's major operations consists of five business segments: • Global Technology Services and Global Business Services, which the company collectively calls Global Services, • Software, • Systems and Technology, • Global Financing
Five Forces Analysis • A.Industrycompetition-high • B.Buyerpower-high/low • C.Supplierpower-low • D.Productsubstitutes-high • E.Threatofentry-low