An 8 page paper. A case study of Lexington that was prepared at the University of Alabama is the catalyst and exclusive source of corporate information. This essay presents an analysis of Lexmark that includes consideration of the industry, external and internal environments, exogenous and endogenous variables, Porter's five forces, SWOT analysis, competitive advantages, and recommendations for change in the organizational structure. Bibliography lists 5 sources.
Name of Research Paper File: MM12_PGlxmrk.rtf
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The changes are due to rapid developments in information technology and the advent of a truly global marketplace and the ability, all of which intensifies the competitiveness among companies to
gain market share. The industry as a whole is one that follows the precepts of an oligopoly. Porter explains that an oligopoly exists when the competitors in an industry
pursue their own interests of profitability (Porter, 1980). However, no competitor takes actions that would cause severe competitive reactions from other companies in the industry (Porter, 1980). An extended price
war, for example, would not be in the interests of the entire industry but product and service innovations would benefit the industry. Porter identified five forces affecting an industry: potential
entrants; substitutes; bargaining power of buyers; bargaining power of suppliers; and current competitors (1980). These all have an impact on this industry. Substitutes, for example, would include wireless technology, such
as keyboards. Lexmark manufactures their own printer motors so they are less at risk in this arena than other companies. Lexmark is very vulnerable to and changes made IBMs practices
since IBM is its largest customer. This industry is marked with fierce competition. Lexmark has dedicated a large proportion of resources to advertising to mitigate this variable. Changes have been
made in both corporate external and internal environments. The external factors of rapid advances and increasing competition inherently change the internal environment of all companies. One of the most dramatic
internal changes has been the need for more cost efficiency, reducing costs of product while consistently improving the products. Another internal change is the need to continually develop innovative products
in anticipation of consumer and business demands. Further, endogenous and exogenous variables have become more important to consider. Endogenous variables can be identified as anything within the organizations business
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