IBM Growth Analysis

863 Words2 Pages

The company is still experiencing growth, but has a potential for expansion in making allowance for production costs and new products upon which the company depends. Economy is a key factor for IBM growth. The company should introduce marketing strategies that appeal to capital conscious individuals. The future of the company depends on their understanding of production costs and marketing strategies. In order to achieve the goals, the company will need to develop aggressive external forces . The company will face challenges, such as rising production cost that may affect their customer base and the company profit.

The industry, indicates that IBM would impact our economy in very positive strong way were it contributed lots of products to all electronics retailer. Michael Porter’s main force is to analyze the necessary framework of five points. The five Forces include: (1) the threat of entrants, (2) bargaining power of buyers, (3) bargaining power

of suppliers, (4) threat substitutes, (5) competitive rivalry. These five forces will explain

IBMs’ potential for growth

(1)The threat of entrant: LOW:

IBM is one of the most effective and popular computer in the industry. The reason the threat of entrant is low because the rate is enormously high for software services, products, and industrial R&D (Murdick, 2001). The threat of entrant in industry came out to be low for the above reasons that I explained. For example, IBM companies is very popular and expensive compared to other computer companies. Their prices are flexible and less than IBM prices. Thus, the way IBM is set up is very large firm and ranked the highest amongst all other computer industries. In general, the threat of entrant is low due to the co...

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...ness and integrity.

Works Cited

Bjfleisc. (2004, November 06). Computer Industry Analysis. Retrieved June 25, 2011, from Computer Slight: http://computersight.com/computers/computer-industry-analysis/

Mbalectures. (2010, August 28). SWOT Analysis of IBM. Retrieved June 25, 2011, from MBA Lectures: http://mba-lectures.com/marketing/swot-analysis-marketing/1110/swot-analysis-of-ibm.html

Murdick, R. G. (2001). Business policy and strategy: An Action Guide. Boca Raton: CRC Press LLC.

Rao, V. S. (2011, February 21). Formulating Corporate Level Strategy. Retrieved June 25, 2011, from Cite Man Network: http://www.citeman.com/13944-formulating-corporate-level-strategy/

Wray, R. (2010, July 26). IBM faces two competition inquiries. Retrieved June 25, 2011, from The Guardian Website: http://www.guardian.co.uk/business/2010/jul/26/european-union-regulators-ibm

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