Analysis Macro and Micro Environment of Ibm

This article has started revolutionary thinking about what are the different forces in addition to direct competitors that affect competitive strategy of an organization and how better understanding of industry structure and these forces, also known as " Porter 's Five Forces", derive organization 's strategy to achieve sustainability and higher profitability. Author has explained the other factors that contribute for industry structure like industry growth rate, technology and innovation, external factors, government & regulations and complementary products and services. Industry structure changes while responding to changes in competitive forces. Author also discussed the framework to perform industry analysis and avoid common pitfall while conducting analysis. In this review I will summarize five competitive forces explained by Micheal E. Porter and their implication on organization 's strategy. Further, I will discuss the relevancy of Porter 's five forces framework in current scenario.

The Five Competitive Forces model use Information Technology as a tool for implementing change but technology become sophisticated nowadays in today’s business world where Information Technology is seen as a factor for change. In the end, the Five Competitive Forces model cannot be considered as outdated because each company is operation in a micro-network of Buyers, Suppliers, Substitutes, New Entrants and Competitors. This idea is valid for each competition based economy. However, it is important that one cannot solely rely on Michael Porter’s model of five forces when forming a business strategy and examining business

An organization’s external environment is terribly important and must be studied and understood for the organization to truly succeed. Through such study and understanding, a manager would be able “mitigate threats and leverage opportunities” that are caused by the six segments identified as macro-level external forces: (1) political, (2) economic, (3) sociocultural, (4) technological, (5) ecological, and (6) legal (Rothaermel, 2013, pp. 56-57). Since the manager’s decisions, or firm effects, have a greater impact than those external forces mentioned only when the manager accounts for them and builds a strategy around them, the manager must be aware of and understand these forces to be

When manipulating a business’s strategy, it is important to focus on the external factors in the environment. An external analysis is where a business conducts environmental scanning that present a company with the key external forces influencing the organization. The facets of external forces examined are the business environment, remote environment, or the competitive environment. A business environment is all of the external factors in the general environment that a firm cannot control, but can affect their strategy. The remote environment is the forces that affect most firms. Lastly, a competitive environment is the firm’s specific industry and its entirety. The external analysis is pertinent to a company called Dick’s Drive- In; without it, Dick’s would not be a thriving popular business today.

Macro environment or macro forces consists of the larger societal factors that have the potential to affect an organization’s strategies. According to Phillip Kotler, these variables include demographic, economic, natural, technological, political, and cultural outside forces. (“Josbd”, n.d, para. 7)

Identifying influencing factors of a company’s macro-environment helps in the strategic development and management within a company. The macro-environment outlines an industry and the competitive environment as seen in figure 3.1, (Gamble, Peteraf, Thompson, 39). Within the macro-environment there are the political factors, economic conditions, sociocultural forces, technological factors, environment forces, and legal/regulatory factors. All of these factors blanket the habitat an industry and its competition thrive in. Inside the industry and competitive environment there are five factors that influence an individual company. The five factors are suppliers, rival firms, new entrants, buyers, and substitute products. The biggest impact on a company are these five factors. For example, Under Armour focuses on their industry and competitive environment to survive and grow. Their strategy to win over the market share from Nike and Adidas consists of expanding a stable and original brand within record time, taking an innovative approach to their product line-up and brand-name appeal where the market seemed to be barren, and lastly, the company enters in the foreign market early on to establish its brand and influence markets outside of the US.

For strategic analysis part, we used PESTLE and Porter’s 5 forces for external analysis; and SWOT and Value Chain for internal analysis.

Q1. What is the primary objective of IBM’s advertising? How have the objectives of its advertising changed over the years?

The Global IT consulting services are growing; this growth is occurring in the U.S and Worldwide market. “For 2016, CompTIA’s consensus forecast projects 4.9% global IT industry growth and 4.7% growth in the U.S. market. “(IT Industry Outlook, 2016) This represents a .2% growth difference. Showing the worldwide IT industry and U.S market’s growth are trending firmly. “According to the research consultancy IDC, the global information technology (IT) market surpassed $3.7 trillion in 2015 and is on track to reach $3.8 trillion in 2016 (constant currency). Covering revenue generated from hardware, software, IT services, and telecommunications. “(IT Industry Outlook, 2016). Showing an expected industry growth of 0.1 trillion increase.

• Open Architecture : OS – Microsoft, Microprocessor – Intel , reason, to encourage application developers and enhance Peripheral market

Q1. What is the primary objective of IBM’s advertising? How have the objectives of its advertising changed over the years?

In the competition orientated era of today, most corporations have an intention to expand its business in the global economy. It is necessary for those corporations to consider its external business environment so that it can help corporations develop its business more successfully. Considering the external business environment of corporations, usually the PESTLE principle is used for analyzing the environment faced by the corporations. Raytheon is one of the largest corporations in the world. For the current developing of Raytheon, it is possible there are some

Although both companies have diversified into other industries, PC industry is still their most important source of revenue. For years, these two giants are battling for lead in PC market. When measured by market share, HP has taken place of Dell as No.1 seller in PC market since 2007 (FIGURE 1). When measured by revenue, HP also wins over Dell for almost five years (FIGURE 2). Also, Acer grew rapidly in market share partly because of its merger with Gateway in 2007 (Einhorn 2007), and almost matched Dell in 2009.

There are many theories and strategies that managers used to achieve business success. The strategy research and ‘practical’ models assumes that organizations are able to adapt to their environment. However that is not necessarily the case as there are many examples of mainstream approach that has been criticised for not taking into account how environments can also constrain individuals and organisations. Mainstream approach such as organizational ecology and institutional theory is argued for not considering on how environments are also one of the factors that constrain individual and organisations which are also known as task environment. Task environment is the external environment of an organization which affects its

Many factors shape and form the operations strategy of a corporation, for example, the ever increasing need for globalizing products and operations and thus reducing the unit cost, creating a technology leadership position, introducing new inventions, taking advantage of mass customization, using supplier partnering, and looking for strategic sourcing solutions. All of these factors require an external or market-based orientation; these are the changes that take place in the external environment of the company.