IBM’s Think strategy is a successful example in the innovation of the brands in the twenty-first century. As a result, the new consolidate organization can go to the market with one identity. There are three main reasons for IBM to come up with “Think”: the first one is that the ThinkPad’s success has created high awareness in the customers’ mind, and then without absolutely giving up the old popular brand, IBM’s managers abstract a similar but new brand—“Think”, which contains the managers’ expectation to continue the success of ThinkPad; the second one is that the original founder of IBM—T. J. Watson—has made “Think” the motto since he established IBM. Therefore, deepening its own brand meaning is important for IBM to recommend their customers that IBM is a coherent and developing company; the final one is that IBM needs to develop and adjust its industrial structure, which, initially, involves changing brand to adapt to the new industrial structure, and “Think” can take the responsibility of inheritance and development. After this strategy, IBM creates three new departments, which are focus on improving the service level of IBM in almost all aspects.
Furthermore, the value of IBM is proposed at the same time, which indicates the customers that selling the products won’t be the end of the business, but just the beginning of the long-term service and communication, and they will be able to get any help that they need on the products. Moreover, according to the statistic, it is apparent to see that the sale rises huge in the first three years after using the new brand, which means the market’s reflection is positive or can even say that the new brand is highly accepted by the market.
According to the SWOT analysis, IBM’s strength is building its brand, which was depending on the good quality of the products before, but after using the new brand, the service part is added with the same or even better quality and making differences from the old brand ThinkPad, “Think” will have a synergy effect with the process of improving the service level. IBM’s opportunity is that it will perfect its industrial structure and then it will be more competitive in segments of the market that its rivals may ignore or do not pay attention to or do not have enough capacity to do.
The threat to IBM is the risk of the failing to satisfy its customers. It is a challenge for IBM to smoothly finish a big transformation, but comparing with its rivals, IBM is becoming more refined and fragmented, and this brand strategy will improve enterprise structure competiveness. Meanwhile, regarding to the emotional attachment, the people who have already owned IBM’s products will be more dependent and loyal on IBM’s service and technologies. It will help IBM to stand out from many IT companies. In the modern society, a company’s development is necessary and difficult.
The suitable strategy and the ability in innovation and execution are becoming more and more attractive to people’s attention. Take Apple’s product—iPad– for example, the iPad 1 was first sold in September 2010, which was the first tablet computer and caused a quite stir in the market. Now, just after a half year, the Apple company launches iPad 2, which is used to consolidate market share while many other companies also launch this product. It is obvious to see that Steven Jobs, Apple’s CEO, is very confident and aggressive in launching the product, using the strategy, catering to the market demands and consolidating achievement.
