IBM's Case Study: Analyzing Position, Joint Venture Roles and Challenges, and Ansoff Matrix Application

IBM’s Case Study 1
IBM’S CASE STUDY
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IBM’s Case Study 2
IBM’S CASE STUDY
Introduction
The environmental management case study at IBM forms the basis of this essay to help
undertake a strategic audit and critically evaluate the current position of IBM in the marketplace.
This focus of this paper is to understand the external operating environment alongside IBM’s
internal core competencies using four management models including Porter’s Five Forces,
Pestle, Porter’s Value chain and Ansoff Matrix. This has three sections. The first section
addresses IBM’s current position in the marketplace; section two discusses the roles, challenges,
and risk of a joint venture as a mechanism for growth. Finally, section presents a discussion on
the how organizations apply Ansoff Matrix Model when considering entry into emerging
markets.
Q1. Analyzing IBM’s Position:
(i). Porters’ Five Forces
IBM employs strategies to tackle a broad range of matters in the IT industry environment
like external variables demonstrated in Five Forces examination of the IBM. “Michael E.
Porter’s Five Forces analysis” is a tool for strategic management which helps in the identification
of both external variables alongside associated intensities that contributes to five forces including
buyer power; competitive rivalry; supplier power; new market entry threat; substitution threat
which dictate the competitive scenery of industry atmosphere. In IBM’s scenario, the external
examination regards the context of IT sector.
A broad range of variables influences the real performance of Big Blue. However,
external variables highlighted in the examination denote the most important and suitable to the

IBM’s Case Study 3
IMB. For instance, the performance of IBM financially is connected unswervingly to its ability
to tackle the external variables associated with the competitive rivalry intensity force.
Accordingly, it is necessary to undertake suitable action to mitigate the concerns indicated in this
“Five Forces” IBM scrutiny. This is useful for investors to make decisions relating to their
investments in IBM. For instance, the strong forces present in every element of external
examination could correspond to the challenges of IBM in efficaciously implementing
established strategies by industry atmospheric conditions. The precedence of IBM in tackling
such external variables and forces have to equate intensities of such same forces. This alignment
strategically guarantees achievement rates in the rising IT industry.
To sum up, competition denotes “highest-intensity” in IMB business surrounding. Each
of the remainders of forces shows a modest intensity. Therefore, this external examination
indicates that rivalry has to assume the highest priority in the strategic formulation by IBM. Such
prioritizing has to expedite ongoing growth of business in IT industry. Nevertheless, the external
variables in “Porter’s Five Forces” examination of the firm further highlight the importance of
remaining forces in strategic success. For instance, the consumers and suppliers’ bargaining
powers alongside the threats of new entry and substitution are important in the determination of
IBM’s performance. Hinged on the outcome of this “Five Forces” examination, the subsequent
intensities below are influencing the business of IBM include:
• Buyers or customers bargaining power stays moderate
• Competition/rivalry remains a strong force
• Suppliers bargaining power remains moderate
• The new entry or entrant threat remains a moderate force
• The substitution or substitute’s threat remains a moderate force

IBM’s Case Study 4
Recommendation:
Because the competition stays the strongest force of the five in the IT industry
environment, IBM’s strategic attempts have to be directed towards the sustained competitive
edge improvement. Such a recommendation tackles the need to bolster the leadership goals in the
industry and aims created in the vision alongside mission statements of IBM. For instance, IBM
can improve its skills and talents to optimize business competitiveness via expertise in ITs. The
organizational culture of IBM can bolster such HR development strategy. The other important is
for IBM to stress breakthrough innovation in its R&D efforts. This “breakthrough innovation”
must lead to widespread IP portfolio, the primary strengths acknowledged in SWOT examination
of IBM (Tavakoli, Schlagwein and Schoder 2015). It is further recommended that IBM has to
improve product development, innovation as well as management for the creation of a
competitive edge via well-known institutions in IBM’s operation. For example, adjustment in the
IMB’s organizational structure components will support this strategy for enhancement for a
competitive edge. Moreover, IBM has to tackle the remaining forces included in the analysis of
“Porter’s Five Forces”, taking into account their modest intensities as well as the importance of
their related exterior variables.
(ii). PESTLE:
Political:
IBM is MNC that operates in several economies, usually leading to IBM’s need to
navigate contradicting regulations. This is because whatever could be legal in one nation is
illegality in another and financial practices could as well differ. Rights of workers, patent law
and export controls must be considered (Zalengera et al. 2014).
Economical: