Management Information System

1.Threat of new entrants High capital requirement needed to computer memory R&D and assets make the threat of new entrants relatively low. IBM spends large amount of funds annually for R&D, in order to constantly introduce new high-technology and innovative products and solutions to commercialize to maintain its? competitiveness,Tougher for new entrants to achieve economies of scale due to commence curve effect. In addition, Consumers? preference over established brands, semipermanent relationship and broad product portfolio make IBM the preferred brand. 2.Threat of SubstitutesPropensity to surrogate is low for buyers. Threat varies from low to medium with high permutation hail and product differentiation such as technology, performance, functionality etc. 3. talk terms berth of buyersBargaining power is high during sourcing stage. However, buyers bargaining power diminution after the purchase stage as switching cost is high with compatibility concerns, migration issues and cost of hardware/software. 4.Bargaining power of suppliersSuppliers? bargaining power is low for the effort, IBM maintains a diversity of suppliers. 5.Intensity of rivalry among established firmsAfter several(prenominal) years of contraction, the global IT industry returns to growth.

The competition in the industry is intense with big boys like Microsoft, Dell, Hewlett-Packard and Sun Microsystems with diversified capabilities. ReferencesGerry Johnson, Kevin Scholes and Richard Whittington (2005), Exploring merged Strategy ? Text and Cases, 7th edition, Harlow : FT/Prentice Hall. IBM Corporation, useable online from http://www.ibm.comIBM Annual report 2004, An IBM Prospectus, Understanding Our Company, open online fromhttp://www.ibm.com/annualreport/2004/course catalog/IBM Public Affairs, available online from http://www.ibm.com/ibmIBM corporation, Government and Public Policy, available online : www.ibm.com Here are some of the most important characteristics of the PC industry: It Is Very Price... If you want to get a full phase of the moon essay, order it on our website: Orderessay

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