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IBM: Questions | Suggestions
| The Report | IBM's Say
Where the source of the Web
Influence is and what direction IBM is going
By Gregory R. Gromov
IBM has grabbed the high ground with television ads touting its
expertise in e-business,
By David Einstein, San Francisco Chronicle, February 15, 1999
||As can be seen from the left chart, IBM and Microsoft spend almost the same amount of advertising dollars across all media.
However, it appears that they do this job by in ultimately different ways.
Both companies assure potential customers and investors that they
are Internet companies. Meanwhile
the ranks of Web Influence of these two companies are
very different (Web Influence Rank
of Microsoft - 1, IBM - 6)
dollars spent across all media. Third Quarter, 1998. Data sources: Newswire, February 1, 1999.
|One of the results of this great difference in Web Influence
is the incomparable difference in the market capitalization
to sales ratio: IBM's is fourteen (14)
times lower than Microsoft's.
And as one of the final
results of all these chain of "differences" IBM's market capitalization is now
about $160 bill and Microsoft -- $374 bill
Ultimately, this means that when investors decide where they will put
their money, they will feel about two times more confident toward
Microsoft's business future than IBM's.
IBM e-commerce director Scott
Gannon clarifies for us in much detail that his company has developed huge
e-commerce related tech-potential during the last two years. When he contacted Internet
Valley, he also told us that IBM now makes more than $1 billion per
month in online transactions. In comparison, Dell -- the pioneer of online PC
sales -- makes about $15 million daily. This means that IBM's
Scott currently doubles Mike Dell's online sales with the gap
So judging from IBM's e-commerce report and
Scott Gannon's comments, it looks like IBM will continue to solve
successfully any kind of tech-related tasks that the company decides to work on (the
company's internal Web tasks included).
What about the Web Influence
It looks like IBM is still trying to solve
the problem with heavy TV advertising ...
Users Find out About WWW Pages
Data source: GVU Center, College of Computing, Georgia
Institute of Technology, Atlanta, GA
According to the past 3
years of Internet Valley's research, the main measure of Web Influence is
the total number of external hyperlinks to a company's Web site. During this time
Internet Valley has also created hyperlink mechanics-based technology in order to
increase and monitor a company's Web Influence zone. Survey results recently published by
Georgia Tech's Graphics, Visualization & Usability Center support the value of this
approach. As can be seen from the chart below, external links are the most important way
of increasing the visibility of a company's Web site. In other words, the chart below is
an additional illustration of the fact that hyperlink
mechanics can be now considered as the best foundation for the methods and technology
that will be most effective for heightening a company's Web brand.
See also: Questions | Suggestions | The Report |