...Rough Draft Conduct Analysis Porter’s Five Forces IBM Lisa M Schmidt Team 3 GEB 4891Strategic Management Dr. Tristan Davison Overview of the Business IBM Corporation creates business value for clients and solves business problems through integrated solutions that leverage information technology and deep knowledge of business processes. IBM solutions typically created value by reducing a client’s operational costs or by enabling new capabilities that generate revenue. These solutions draw enterprise software systems and financing. IBM provides innovative solutions that exploit cutting edge technology for their clients. The Business Model as a Value Chain for IBM An important concept from Michael Porter (1985) is called the value chain, which is the firm’s business model. This tells the sequence of events of activities the company performs so that you can see what the firm does and it will show you where the firm is weak and strong. To become acquainted with IBM’s Business Model, the levels are an important step that facilitates identifying and a better understanding of the company’s business strategy. * Customer Relationship Management * Research and Development * Project Specifications * Team information, technology and business problem knowledge * Project delivery Business Strategy IBM Corporation has consistently delivered superior performance, with a steady track record of sustained earnings per share growth. Despite the volatility of Information Technology...
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...Executive Summary This paper reviews the competitive landscape of the PC and peripheralsindustry through analysis of thecompany strategy, business model, distribution channels, competencies and value chain to provide a series of recommendations for Acer’s Board of Directors. Acer is the third largest PC manufacturer in the globe using atransnational strategy to procure components to maintain cost leadership. By using strategic group maps, Porter’s five forces, SWOT analysis, value chain review and the Dranove model a comprehensive analysis of the Acer external and internal forces are reviewed. On the basis of the analysis a series of recommendations have been made to ensure that Acer remains competitive, retains the number 3 ranking and are sustainable into the future. It is recommended that Acer find blue ocean against competitors through the use of the premium branding of product, whether this be Ferrari or another premium luxury brand and determine if some of this can be derived from sustainable and green materials. Once these are determined it is recommended to use a balance scorecard with alliances to help drive innovation together with a tried and tested sales system to increase Acer market share. Background and Context Acer is the third largest PC Company in the world (9.5% market share) with growth being experienced outside the mature USA market, predominately in emerging nations. Although Acer experienced growth in 2007, increasing its sales by 32.9%, the PC...
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...these issues by assuming a Cost Leadership in a Broad Market strategy to win the price war on cost, establish strategic relationships with system integrators and resellers to counter the product diversification threat of multi-offering Rivals, and strengthen its brand presence internationally to enable continued market growth. Personal Computer Industry : Industry Structure Analysis In this analysis, I define the Personal Computer Industry as that which is comprised of computer manufacturers responsible for the assembly of personal computers, either in entirety or with the assistance of contractors or channel partners. Dell is included in this definition, as are Dell’s Rivals highlighted in the case. In applying Michael Porter’s Five Forces Modeli, it is clear that the Personal Computer Industry is largely unfavorable when viewing the industry facts specific to 1998. Industry Rivalry is high, with many players of...
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...answer these issues by assuming a Cost Leadership in a Broad Market strategy to win the price war on cost, establish strategic relationships with system integrators and resellers to counter the product diversification threat of multi-offering Rivals, and strengthen its brand presence internationally to enable continued market growth. Personal Computer Industry: Industry Structure Analysis In this analysis, I define the Personal Computer Industry as that which is comprised of computer manufacturers responsible for the assembly of personal computers, either in entirety or with the assistance of contractors or channel partners. Dell is included in this definition, as are Dell’s Rivals highlighted in the case. In applying Michael Porter’s Five Forces Modeli, it is clear that the Personal Computer Industry is largely unfavorable when viewing the industry facts specific to 1998. Industry Rivalry is high, with many players of similar size relative to...
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...Micheal Porter projected five forces model in capacity to analyze competitive strategy of the management in any industry. These forces hold an exigent spectrum of importance in the airline industry because of enormous market saturation. The concentration of airline service providers in the market are more than the actual needed demand. Due to immense competition, the level of competition is enhanced within the complex market offering in terms of technology, prices, in-flight entertainment, customer services, and so on. Hence, this paper is presented to analyze the Porter’s five forces model in the horizon of airline industry. Porter has also given the more enhanced framework of forces by including the sixth force as well, which will subsequently be analyzed according to said industry. Porter’s Six Forces Model Analysis The extension of Porter’s five forces model is actually regarded as Porter’s six forces model. The enhanced stimuli of forces did not gain such popularity as that of its previous model integrating five forces only, because of its less positive acceptance. The model is similar to the five forces model with only difference of sixth force in the framework. Hence, all Porter’s (1980) forces are explained below with their certitude rating in the parameters of airline industry. Force 1: Threats of New Entrants The threat of new firm into the same industry is the force which describes the dependability of new entrants on the entering barriers. These barriers...
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...1 Political and legal factors 7 2.1.2 Economic Factors 7 2.1.3 Social-Cultural Factors 8 2.1.4 Technological Factors 8 2.1.5 Environmental Factors 11 2.2 PROTON’s SWOT Analysis 12 2.3 Industry Analysis 12 Proton five forces model 13 2.3.1 Threat of New Entrants 13 2.3.2 Bargaining Power of Suppliers 13 2.3.3 Bargaining Power of Customers 14 2.3.4 Threats of Substitutes 14 2.3.5 Competitive Rivalry between Existing Players 14 2.4 Some other external factors 15 2.4.1 Change in Customer Demand 15 2.4.2 Globalization 16 PART: 3 17 Recommendation 17 3.1 How can we deal with the pressure of innovation? 17 3.2 Cost Control 19 3.4 Innovative feature’s pricing decision 20 3.4 Dealer knowledge in customers 20 Conclusion 20 References 22 Appendixes 25 Appendix-1 Supplier spending on R&D 25 Appendix-2 Changes in external force 25 Appendix-3 Critical industry skills 25 Appendix-4 Expected challenges of automotive industry 26 Introduction The report is going to conduct Proton external analysis and the report has been divided into main three parts. The first part will be discuss some background of the company. The secondary part complete external analysis through using PESTEL, SWOT and Porter five forces model. The third and last part of the report will be put forward some recommendation for the company to effectively deal with external environment of the organization. At the end a conclusion will be drawn. PART: 1 Proton Introduction...
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...on the UK. The growth of in UK was achieved through improve sales to large firms and growth in the mid-market segment through a strengthening of the Group’s sales resources. Europe is a key strategic market and battleground for Lenovo. 1. Introduction Lenovo was set up in 1984 as a reseller in China and Hong Kong for the members of the Chinese Academy of Sciences like IBM and Hewlett-Packard. By 1989, now known as Hong Kong Legend has branded out into motherboard manufacturer and it has changed its name to Lenovo and launched itself on the Hong Kong Stock Exchange in 1994 (Malone, [n.d]) . Since 1996, it beat the foreign giants to be the best-selling PC brand and outsell many foreign brands (not just PCs) in the Chinese market. Since Lenovo decided to go abroad and diversify its products and try to produce high tech products, the market share in China were approximately 30 percent in 2003. “Lenovo is the number one PC firm in the Asia Pacific market (excluding Japan) with 12.4 percent of market share” (Biediger et al.., 2005, p 408). “In a surprising comeback in December 2004, Lenovo concluded to purchase IBM’ PC division for $1.75 billion in cash, stock and assumed liabilities. Lenovo’s share in the global PC market currently stands at 2.2%. The combined company has...
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...A Critical Analysis about Competitive Advantage of Apple Inc. based on the Porter`s Five Force Model Northeastern University Strategic Leadership Xiaolong Cao Instructed by James Lux June 6th 2016 Abstract This article aims to detect two key areas in Apple`s competitive advantage through using Porter`s Five Force model. According to the knowledge learned from class, there is no forever lasting competitive advantage, so through analyzing the case of Steve Jobs competitive strategy it presents a clear and reasonable structure and explanation of their competitive advantage. After doing this analysis, this article helps to fine both the disadvantage and advantage of their competitive advantage, and each of them contains two aspects according to Porter`s Five Force Model, which provides a reliable and meaningful support to test and excavate the effect of competitive advantage and future developing orientation. Introduction In the modern time, there are numerous resources that identify the importance of the competitive strategy. The ever growing technological trends and volatility within business operations in today's society make it extremely difficult for organizations to stay complacent with their strategies. Adjustments and new ideas need to constantly be developed to be able to maintain a competitive edge. The most obvious examples happen in IT industry, high performance laptop was a competitive advantage 2 years...
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...The Link Between Competitive Advantage & Corporate Social Responsibility | Business and Society | | There is currently growing interest in corporate social responsibility (CSR) among both companies and managers. It has become an important topic of theoretical concentration and one of the most widely accepted business concepts. The major issues in the field of CSR concern stakeholder analysis and corporate strategic management. Numerous attempts have been made to link CSR and financial performance. While the debate over CSR continues, it reveals that some additional research can be done on the link between CSR and competitive advantage (CA). CSR is understood to be the way firms integrate social, environmental, and economic concerns into their values, culture, decision making, strategy, and operations in a transparent and accountable manner (Berger, 2007). Thereby firms establish better practices within, create wealth, and improve society (Berger, 2007). CSR programs go beyond legal and ethical frameworks to include a wide range of issues for the organization (Berger, 2007). Specifically, CSR programs can impact a wide range of issues managed by the organization including: corporate governance and ethics programs; health, safety, and environment programs; attention to human and labor rights; human resource management policies; community involvement; respect for indigenous groups and minorities; corporate philanthropy and employee volunteering; adherence to principles...
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...Apple in case study Question 1/ Analyze the microenvironment and drivers of changes of the PC industry. What are the opportunities and threats facing Apple, Inc. (PESTEL analysis, “Uncertainty/Impact” drivers’ analysis and Scenario Planning)? 20% : a) Opportunities and threats facing Apple, Inc. Opportunities: * Entrance in new markets; * High levels of demand of Apple’s products (IPhone, IPad); * Damages from competitors who doesn’t respect Apple’s patent; * Exploitation of new advertising methods. Threats: * High levels of competitiveness; * Dependence on specific suppliers; * Android system Vs. iOS; * Inflation; * Levels of taxes. b) PESTEL analysis Political factors: According to Datamonitor (2012), 38.6% of the total revenues of Apple Inc. were from U.S. during 2011. Therefore, 61.4% of sales of Apple Inc. were from outside America. Bad global relations, wars, and terrorism can affect the business of Apple Inc. Furthermore, Apple Inc. manufactures many of its products and parts outside the U.S., like in Czech Republic, Korea, Ireland, Cork, and China. Economical factors: The global recession might have influence on Apple Inc. The inflation rate is high, while consumer’s earning did not have significant changes. Moreover, the unemployment rate has amplified, affecting consumers to spend less, especially on ‘Luxury products’. However, Apple’s revenue is not affected by this economic recession although most of...
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...online, not for profit organization called “re-use UK” and the unique challenges and impediments that it faces as it tries to achieve its ultimate objective of curbing environmental degradation through creating an online platform for the exchange, sharing and recycling of used goods among its online users. Due to the unique concept of the organization, conventional business models may not be applicable for “re-use- UK” and thus, in the first part of this report an attempt has been made to develop an appropriate business model for them. The focal point of which is the key partnerships that “re-use –UK” must form. As per the assessment requirement, in depth strategic analysis of “re-use UK” has been conducted using PEST analysis and Porters five forces. A critical assessment of the major emerging technological trends that are shaping the dynamics of the start-up’s industry is also included in the report. Since, the start-up plans to operate through the internet, a major portion of this report focuses on the development of a suitable IS strategy for “re -use UK” using the results of the strategic analysis and technological trend analysis as inputs. This section includes a detailed account of the major components of the potential IS strategy, along with information regarding its management. Finally, the...
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...Contents 1.0 Introduction…………………………………………………………………3 2.0 Overview of Industry Life Cycle……………………………………………4 3.0 Literature review of Information Technology………………………………4 4.0 Conclusion for Industry Life Cycle…………………………………………5 5.0 Industry Level Analysis (Dell)………………………………………………6 6.0 Business Strategy……………………………………………………………7 7.0 Enterprise Solutions and service…………………………………………….8 8.0 PEST Analysis of Dell Company…………………………………………...11 9.0 Porters Five Forces of Dell………………………………………………….13 10.0 Stage of Industry Lifecycle of Dell…………………………………………16 11.0 Recommendation to improve performance of Dell…………………………17 12.0 Conclusion…………………………………………………………………..18 Bibliography………………………………………………………………………....19 Appendix…………………………………………………………………………….21 Overview of Industry Life Cycle Industry Life Cycle (ILC) is the stages of evolution through which an industry progresses as it moves from conception to stabilization and stagnation. Different analyses posit different stages of an industry life cycle (usually four to five), but all emphasize that an industry has a beginning, with technological innovation; a period of rapid growth; maturity and consolidation; and finally decline and possibly death. Industry dynamic impacts firm strategy and survival, and it is important to managers understanding that whether firm should compete or cooperate at different stages of the industry life cycle (Wilson & Hynes, 2009). One of the main tenets of how firms and industries evolve is that, as...
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...Starting from 1976, Apple computer created the personal computer (PC). After IBM transformed the PC from proprietary systems into open structure, PC has been dominated by Wintel (Windows + Intel) structure. Apple insists in adopting proprietary and niche market strategies made them keep losing market share till less than 3% in 2001. However, its strategy with ignoring the market trends makes it lose the market after years. 1.1 Industrial changes: Apple lost PC market because of ignoring industrial changes The PC industry has evolved in the past decades. There are 3 phases. Let’s take a look at these phases and Apple’s position in each phase. Before 1981: Proprietary Systems. Every PC producer had to develop self own hardware and software. It was proprietary. Most buyers were technical people. There were 2 main streams in the market: Apple style machine and IBM style machine. During this period, Apple was the leader. Its strong developing ability made the Apple II became a family commodity. However, Apple didn’t use patent or trade secret to protect its products. Many computer companies re-engineered Apple II and made cheaper similar products to compete in the market. For example, Acer copied Apple II and developed the Little Professor Series. 1981- 1997: Open structure. IBM turned the PC into open structure. Compaq, HP and many other producers started to show in the market to produce IBM compatible PC. During this period, hardware can be separated into CPU,...
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...have also been discussed. Introduction The value chain approach was developed by Michael Porter in the 1980s in his book “Competitive Advantage: Creating and Sustaining Superior Performance” (Porter, 1985). The concept of value added, in the form of the value chain, can be utilised to develop an organisation’s sustainable competitive advantage in the business arena of the 21st C. All organisations consist of activities that link together to develop the value of the business, and together these activities form the organisation’s value chain. Such activities may include purchasing activities, manufacturing the products, distribution and marketing of the company’s products and activities (Lynch, 2003). The value chain framework has been used as a powerful analysis tool for the strategic planning of an organisation for nearly two decades. The aim of the value chain framework is to maximise value creation while minimising costs (www.wikipedia.org). Main aspects of Value Chain AnalysisValue chain analysis is a powerful tool for managers to identify the key activities within the firm which form the value chain for that organisation, and have the potential of a sustainable competitive advantage for a company. Therein, competitive advantage of an organisation lies in its ability to perform crucial activities along the value chain better than its competitors. The value chain framework of Porter (1990) is “an interdependent system or...
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...NAME : NELIUS WACHUKA. NJOROGE. ID NUMBER : B0505RORO0410 TO : DAVID ACQUAYE COURSE : STRATEGIC INFORMATION MANAGMENT DUE DATE : 25/10/2010 SUBJECT : STRATEGIC PLANNING PROCESS OF DELL. EXECUTIVE SUMMARY Every organisation has different processes it uses to be successful and there are some that are quite essential for a business to identify what it is doing right and what it is not doing. Through this process clearly analysed in Dell Corporation in this report it is able to help a business grow, and thus by identifying all this factors a business is able to make starategic decisions on what is best for the business and develop goals that will help move the company forward. So by looking at Dell we will be able to identify all this important processes and thus run a successful business. INTRODUCTION. Dell which was formed by Michael Dell in his university dorm room as shown in http://www.bizface.co.uk/bizfaceforum/blogs-leading-articles/43905-famous-dell-case-study-finance-case-study-dell-s-dilemma-brazil-del.html in 1984 when he was only 19years and is now one of the biggest computer seller worldwide. It has over 100,000 employees in the world and sells 110,000 systems daily to over 180 countries. In its’ second quarter of the fiscal year ended 30th June 2010, dell generated a net income of $545 million. All this huge figures just show how big a corporation dell is and many may ask what were the factors that attributed to this dells’ success...
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