Environmental Analysis Of Ibm Corporation
Environmental Analysis of the IBM Corporation
Forces Influencing Business in the 21st Century
Hamdeh Ramideh
University of Phoenix
Yeha.casuary@yahoo.com
MBA 501
Kim Eftekhar
Introduction
The recent acquisition of the IBM Company was by the Chinese company
Lenovo in 2005. First, This paper will identify the computer industry
that the company IBM operates in as an acquisition of Lenovo. The
change in the trading situation in China and changes in US fiscal
policy have led to a new environment for the computer industry at
large, especially the IBM company with its stock predominantly now
owned by the Chinese company Lenovo. A couple of the computer
industry variables will be seen compared to the macroeconomic
variables surrounding the computer industry and the result is insight
into the new emerging global economy and the future of IBM as an
acquisition of Lenovo.
Computer Industry
The computer industry is defined by the buying of a sector of
goods called durable goods. The definition of durable is that the
computers only last 3-7 years. Most people do not want to spend money
on replacing them once the technology reaches a certain level, or if
they have a real reason to get a new computer. The computer industry
tries to get around this by adding new features to their operating
systems, but the overall market in the US has slowed. IBM had a
deficit of 500 million dollars before Lenova bought it out. The
competition Dell and Hewlett Packard are having troubles selling
their computers as well even though all the computer companies have
slashed their prices in...
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