Saturday, June 15, 2019

Strategic analysis of IBM from 2000 to 2005 Essay

Strategic analysis of IBM from 2000 to 2005 - Essay Example133).The company has recently adopted an integrated supply, manufacturing and distribution operation into one operating unit. In addition to its own manufacturing operations, the company uses a number of contract manufacturing (CM) companies to manufacture IBM-designed products. In their website, IBM stated that it spends nearly $2 billion a year with diverse suppliers, for example, greater than any other technology company. Yet more than managing their expenditures, IBM had emphasized a responsibility to hold themselves and their suppliers to spirited standards of behavior. This means complying with all applicable laws and regulations. They seem to support a strong commitment to work with suppliers to encourage sound practices and develop sound global commercialises. in spite of their companys strong performance in the recent years, IBM is aware that it competes with several large players in the various industries it oper ates in. In the consulting and outsourcing industry, it faces stiff competition from Accenture and Capgemini. In the application stand software business, IBM faces competition from BEA Systems, Oracle, Sun Microsystems and Microsoft. In software, IBM is second to Microsoft, the worlds largest software company. ... This is useful, because it could assist people in understanding both the strength of an industrys current competitive vista and the strength of a position the industry is looking to move into. In analyzing the IBMs competitive environment, Porters Five Forces will delineate that there are five beta forces that determine competitive power in a situation Supplier baron, Buyer Power, Competitive Rivalry, Threat of Substitution and Threat of New Entry.Supplier PowerIn their website, IBM mentioned that it developed an IBM Global Procurement, which is part of the Integrated Supply Chain organization. This arm of the IBM acquires goods and services for IBM and its clients. Th is is done with flexibility to sense and react to changing market dynamics. With few exceptions, this organization is the only group authorized to commit IBM funds to external suppliers. Furthermore, IBM explained that their Procurement fulfills its mission by using Global Commodity Councils to strategically source goods and services through a network of international, regional and emerging suppliers for IBMs varied businesses. Procurement is conducted in an environment of pervasive e-procurement across all go of the acquisition process - from initial market segment intelligence and strategic sourcing, to tactical order placement, invoicing and electronic payment. With enhanced supplier interaction, Procurement takes responsibility to avow IBMs competitiveness by engaging suppliers to provide competitive advantage in cost, technology, innovation, speed to market, quality, and supply assurance. This responsibility includes activities such as supplier selection, negotiation

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