2.0 MACRO-ENVIRONMENT FACTOR ANALYSIS4
2.2 Economic Factors5
3.0 iNDUSTRY ENVIRONMENT ANALYSIS7
3.1 Threat of Entry7
3.2 Threat from Substitutes8
3.3 Power of Buyers9
3.4 Power of Suppliers10
3.5 Degree of Competitive Rivalry11
In 1995, IBM (International Business Machine Corporation) created the Software Group to pull all of IBM's infrastructure, middleware and operational software together from dispersed units of. IBM's Software Group is now a self-sustaining software business, with growth rates, profits and other key measures in line with other major software companies. In addition, the software group has services and support capabilities via their development labs and their services via support centers. The Software Group has the industry's leading portfolio of middleware products. Software Sales Specialists within Sales and Distribution sell to large customers and over 24,000 Business Partners to sell everywhere else.
Managing and exploiting information is becoming increasing complex for today’s organizations. The value of information continuously changes over its lifecycle based on both external and internal environmental factors. The factors such as macro environmental factor and industry factor give either positive effects or negative influence for organization.
IBM one of the leader company of IT industry which is related to computing, its business spreads to almost every area of technology and software. IBM is the world’s largest information technology company in 2005. It is the biggest provider of IT services, hardware, rental and financing.IBM now provides wide range of Data storage devices as well as servers with enormous storage and secure database. IBM is now aiming for animation, consolidation which saves wide range physical assets.
Furthermore, today’s networked economy has created a global business landscape and a mandate for business change. Integrated global economies have opened markets of new opportunity and new sources of skills. Given these opportunities, IBM creates its own specific strategies to management and develops the company and its strategic management has also significant influenced by the organizational external environment. In general, the external environment can be classified into the macro environments which have the same effect to all organizations with the same industry and the industry environment will have varying degree of effect depend on the organization’s position.
In this report, I will analyze the relevant external environmental factors that typically influence IBM’s organizational strategies. It consists of both the macro environments which have the same effect to all organizations within the same industry and industry environment will have varying degree of effect depend on the organization’s position. Moreover, a series of recommend application will be provided by the following topics to help the organization exploit the positive factors and overcoming the negative factors.
2.0 Macro-Environment Analysis
In a macro-environment analysis a series factors in the environment that has the power to alter the demands, the prices of the products and service and the strategies that organization implemented. These factors can be grouped by six categories: political, economic, social, technological, environmental and global. In this part, we will focus on the main macro environmental factors that affect IBM’s strategies. In addition, some evidence and proposal will be provided to help IBM’s strategic development.
Political factors encompass actions by local and national administrations and political parties, and by international bodies such as EU, AFTA, NAFTA and WTO. These affect the stability of an industry’s environment, the extent to which firms can...