IBM Will Flourish In Any Economic Environment - Seeking Alpha

But IBM plays a critical role in the operations of the largest, most well-known companies in the world, by enabling them to more efficiently deliver their products and services to the end consumer. It’s just that we don’t really hear their name anymore.

But IBM is a leader in the IT Consulting space and they have evolved into the largest, if not the best provider of technology to the Global 500. It’s stock has trailed the S&P 500 on a YTD basis and despite trading near it’s 52-week high, we think the stock has substantial upside in the long-term.

Competitive Advantage

There are two competitive advantages that IBM enjoys in the market which are exclusive to this company: brand name and customer loyalty. The IBM brand is known globally and customers associate it with quality products and solutions - this is something that is hard to replicate for any other competitor in a short period of time. In addition, IBM boasts years of experience in outsourcing services for business processes, applications, and IT Infrastructure and the breadth and depth of experience they offer to their customers creates even more distance between them and their competition. With their focus towards cloud computing services, they have positioned themselves at the forefront of IT consulting, using a massive force of 400,000 employees to deliver results to their customers.