Strategic Planning and Management IBMs Product

Question: Summarize IBMs product legacy and business environment that evolved up to the early 1990s when Wall Street analysts had all but written them off as a company. What were their recent failures and successes? Describe IBMs problem space in the early 1990s that prompted a major shift in strategy. What were the product, institutional, leadership, and internal process gaps affecting IBMs ability to move forward. What wasnt working? Discuss IBMs approach to fixing their strategic planning and execution approach. Include discussion of internal processes, organization and leadership, competencies, market, value proposition, customers, and sustainability? What did IBM do specifically to put well-known theory into practice? As a student, summarize what you have learned from this case. Describe at least three major take-aways that give you a new or better perspective on strategic planning. Answer: The current condition of the global economy mandate organization to conduct industry environmental analysis from a different perspective that are more associated with the competitiveness nature and sustainability rather to conduct the business in the simplest form (Hitt, Ireland Hoskisson, 2007). The nature of the analysis thus changes its direction and focusing to become more competitive in the global market. Five-force framework thus is discussed from a different perspective. Competitive rivalry In the past the business competitors was only involved in manufacturing better products to attract their competitors. However, the situation does not remain the same and most of the business rivalry is involved to convert customer through several schemes rather to focus on the product quality, which is a threat to the whole business environment (Hitt, Ireland Hoskisson, 2007). Supplier power Previously the supplier of a particular industry was dominant to the business but in the current situation most of the industry has suppressed the power of their supplier therefore cost of raw material has become low and customers are getting the best price in the competitive market. Buyer power Current situation has transformed the whole power to the buyer and they has become the dominant force of thee business. Everything is being customized to fulfill the individual need. The buyer has also become more conscious and they are accepting the goods that are providing better quality along with better service. Threat of substation This is also an example of dominant buyer power that increases the competitiveness of the market. There is no room for the business organization to provide any chance to their competitors (Hitt, Ireland Hoskisson, 2007). Threats of new entry The customer are vulnerable in these days and they are flexible to test new thing. Therefore, every new entry is getting an initial support from the customers and the existing business is coming under the threat of losing their business. References Hitt, M., Ireland, R., Hoskisson, R. (2007). Strategic Management (10th ed.). THOMSON.