At one time, IBM was one of the best companies in the world to work for. Over the years, the company made a lot of decisions that do not make sense to those in the business world. Competition continued to increase from various areas, and IBM has continued lose market share.
In a recent earnings release, IBM beat expectations on earnings but fell short on revenue. This is the same story that has been going on for many years. Many investors are tired of getting hurt by IBM and are ready to move their money to other places. On the conference call, the company outlined a plan to take their business to a new level. Here are some of the key points from that call.
When IBM was a leader within the technology industry, they struggled to keep their customers top of mind. A lot of people today are excited about all of the changes that are going on in the field of technology today. However, with these changes, companies have to start thinking about ways to help customers in a variety of ways. A focus on customer service is one of the most important things that any business can have.
The company has decided to invest a lot of capital and resources into this area of their business. In the coming years, they believe that these investments will yield higher sales and profits for the company. It will be interesting to see whether customers respond to this new way of thinking from the technology giant.
Another important factor to consider for IBM is the financial planning of the company. There are many people who are excited about all of the changes that are starting to take place in the company. However, the company is borrowing a lot of money to make these changes.
IBM needs to make sure they have a capital allocation plan for the future. Many years from now, the company could have debt issues if things are not kept in line. There are many people in the field who are wondering whether IBM will continue to be a technology giant.
Overall, IBM is a massive company with a lot of resources. Even with all of those resources, the company is struggling to grow sales and profits in the industry. This is bad news for shareholders and employees.