The threat and opportunity analysis is a significant planning tool for developing business strategies. Threat and opportunity analysis provide a comprehensive view on the favorable circumstances and the challenges that the International Business Machines Corporation (IBM) may face on its operation in the market. In this case, threat analysis entails a look at the challenges that IBM may face in conducting business. For instance, IBM faces the threat of fierce competition from the innovative emerging companies that are venturing into the cloud computing industry (Valentin, 2014). Immense competition threatens the dominance of IBM and reduces its market share on each innovation made.

Besides, IBM is threatened by the imitation of its product which has consistently limited its sales. This threat of product imitation extends to the security of its cloud computing services, i.e. cybercrime stands out as a threat to the confidentiality of the client information. Valentin (2014, p.77) insists links this threat to the low degree of product differentiation by IBM.  IBM has and is liable to continue losing out most of its customers due to the increased piracy and the massive cyber attacks that target the cloud platform products. IBM must consider setting more innovative measures to uphold client confidentiality and safeguard its own patents, i.e. by increasing the degree of product uniqueness.  However, IBM stands to face multiple opportunities which promise a productive future for the company if ventured. IBM has an opportunity to expand its services and product segments. Other than its renowned five segments, IBM has the opportunity to diversify its business and products into other industries. This opportunity is facilitated by the increased innovation of new products that IBM can take on for growth. Moreover, IBM has the opportunity to collaborate and form alliances with the emerging companies to protect its dominance and increase the market coverage


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