Strategic Planning - Ibm 2009
CASE ANALYSIS: IBM IN 2009
Analysis
Industry: Computer Services Industry
Porter’s 5 Forces 1) Risk of entry by potential competitors
The risk of entry by potential competitors is relatively low (+). This is due to the newly entrant competitors that need a large market capitalization, software materials, services and consulting; to gain consumer’s interests. If consumers are able to choose buying their products from a large company that are adequate in the computer hardware, services and consulting, other technological services, they would rather choose a large firm than a smaller firm that do not have adequate resources.
2) The intensity of rivalry among established companies within an industry
The intensity of rivalry among established companies within this industry is relatively high (-). This is because there are big firms such as Oracle that are neck in neck with other large firms such as IBM, trying to acquire every software there is that helps them gain a competitive advantage.
3) The bargaining power of buyers
The bargaining power of buyers is relatively low (+). This is because in this industry that is supplying a particular product or service is not composed of many small companies and the buyers are large and few in number. Also, buyers are unable to purchase in quantity, because many of the firms in this industry offer services and consulting, and software that buyers use.
4) The bargaining power of suppliers
The bargaining power of suppliers is relatively high (-). This is because the product that suppliers sell has few substitutes, and the profitability of suppliers is not significantly affected by the purchases of companies in this industry. Also, switching costs are great as consumers will need to move from their original product to another supplier. 5) The closeness of Substitutes to an industry’s product
The closeness of substitutes to an industry’s product is relatively low (+). There are hardly
Analysis
Industry: Computer Services Industry
Porter’s 5 Forces 1) Risk of entry by potential competitors
The risk of entry by potential competitors is relatively low (+). This is due to the newly entrant competitors that need a large market capitalization, software materials, services and consulting; to gain consumer’s interests. If consumers are able to choose buying their products from a large company that are adequate in the computer hardware, services and consulting, other technological services, they would rather choose a large firm than a smaller firm that do not have adequate resources.
2) The intensity of rivalry among established companies within an industry
The intensity of rivalry among established companies within this industry is relatively high (-). This is because there are big firms such as Oracle that are neck in neck with other large firms such as IBM, trying to acquire every software there is that helps them gain a competitive advantage.
3) The bargaining power of buyers
The bargaining power of buyers is relatively low (+). This is because in this industry that is supplying a particular product or service is not composed of many small companies and the buyers are large and few in number. Also, buyers are unable to purchase in quantity, because many of the firms in this industry offer services and consulting, and software that buyers use.
4) The bargaining power of suppliers
The bargaining power of suppliers is relatively high (-). This is because the product that suppliers sell has few substitutes, and the profitability of suppliers is not significantly affected by the purchases of companies in this industry. Also, switching costs are great as consumers will need to move from their original product to another supplier. 5) The closeness of Substitutes to an industry’s product
The closeness of substitutes to an industry’s product is relatively low (+). There are hardly