Five Impetitive Forces Of IBM

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In the epoch of globalization and widespread use of technologies, emerging trends change rapidly. Thus, the future of any competitive company becomes less and less predictable. To avoid this situation, enterprises apply risk prevention and mitigation strategies aimed to remove the general threat of substitution. However, a biggest danger derives from small day-to-day changes which are likely to affect the businesses slowly but notably. Taking IBM as a vivid example of a successful company, it is reasonable to claim that it also is endangered by non-linear changes and needs to be ready for the uncertain future. To prepare the organization for potential unstable situations, it is important to consider five competitive forces of the company as well as global technological trends, in accordance with the specialization of a business entity. First, the influence of customer and supplier power, established rivals, new entrants or substitutes may notably impact the productivity and profitability of IBM (Porter, 2008). To neutralize the supplier’s power, the IT company needs to put efforts into improvement of its production process because it mostly relies on staff. To attract consumers, IBM can focus on the idea of multiplatform consisting of several technological start-ups, where each one has a different function. As a result, with the versatile range a products, it would be easier for the company to pressure new entrants and spend more resources on research and development (R&D).

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