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Power Tools (Disc 2)(October 1993)(HP).iso
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ibmsum.txt
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IBM Competitive Summary
Updated: Jan 20, 1993
IBM SALES STRATEGY
An IBM sales rep can be expected to call on decision makers as follows:
1. CEO
2. CIO
3. Functional VPs (VP of Manufacturing, VP of Sales and Marketing)
4. Director of MIS
IBM STRENGTHS
When calling on a customer, a IBM sales rep is likely to present the
following as IBM differentiators:
1. Solution to every possible information systems need. Can provide a
single vendor solution to virtually any problem.
2. IBM legacy systems are already in place, giving IBM a superior
knowledge of existing MIS environment.
3. Business support at all levels (help CEO make bonus, positive image
to customers, training for new CIO, systems on loan to programmers,
etc.).
4. IBM's size and corporate stability
5. Ideal solutions for maintaining centralized management control.
6. Experienced services group and extensive systems integration
capabilities.
7. Leading hardware solutions with the AS/400, the technologically
advanced best selling midrange commercial system.
8. Leading hardware solutions with the RS/6000, the flexible
workstation/multiuser server offering leading UNIX performance and
price/performance.
9. Flexible financing plans through IBM Credit Corporation (ICC).
IBM WEAKNESSES
An IBM sales rep will want to avoid discussion of the following IBM
weaknesses:
1. IBM's "product flexibility" is really multiple, incompatible
products lines, each with a limited range of price/performance.
2. SAA is "marketecture," as IBM has failed to deliver SAA
interoperability and distributed computing products.
3. Mainframe based solutions have the highest cost per MIP.
4. IBM lacks real commitment to UNIX and open systems.
5. AS/400 is a 100% IBM lock-in.
6. Limited high-end performance and lack of RISC technology in the
AS/400 product line.
7. Other vendors offer technology that matches IBM's best.
8. Restrictive financing plans.
HP WINNING SALES TACTICS
When competing against IBM, use the following HP differentiators to
establish HP's parity with or superiority over IBM's differentiators:
* Strong partnerships with third-party software suppliers and systems
integrators to ensure customers receive the best available solution,
not just the best solution a single vendor can offer.
* HP Fortune 500 success stories.
* HP's size and strong financial performance.
* Leadership in third-party partnerships (esp. database] vendors) for
superior functionality.
* Leadership in RISC.
* Leadership in commercial UNIX sales and functionality.
* Full range of leasing and financing plans, all offered directly by
HP.
Establish HP's superiority by contrasting the following HP strengths to
IBM's weaknesses:
* HP's broad, fully compatible product lines from low-end workstations
to mainframe-performance systems, in contrast to IBM's multiple,
incompatible product lines.
* HP's delivery of standards based network for interoperability and
distributed computing solutions today, in contrast to SAA.
* HP's leadership in price/performance, in contrast to the high cost
of IBM mainframe or even mini-computer solutions.
* HP's leadership in UNIX and Open Systems, in contrast to IBM's half-
hearted efforts.
* Standards compliance that allow customer to easily move from an HP
to another vendor's solutions, in contrast to the IBM lock-in of the
AS/400.
* Leadership in RISC, in contrast to the AS/400.