SWOT Analysis of IBM

IBM, acronym for International Business Machines, is an American multinational computer technology and consulting corporation. IBM is headquartered in Armonk, New York. It is the largest technology and consulting employer in the world, with more than 400,000 employees serving clients in 170 countries. IBM is the world’s third largest technology company and the second most valuable global brand (after Coca-Cola). IBM manufactures and sells computer hardware and software, and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology. The SWOT Analysis of the IBM Company is given below:

 

Strengths

 

  1. IBM is the globes’ 3rd biggest technology corporation and the world’s 2nd most valuable brand. 
  2. It is one of the few IT companies with a constant history dating earlier to the 19th century.
  3. IBM had many spin-offs and acquisitions some noticeable are: SAP and Levono.
  4. IBM is ranked number one hosted company in Western Europe.
  5. The company is highly innovative. 
  6. IBM has diversified workforce and flexible culture, which allow employees to have open forums for innovations and different ideas.
  7. IBM has very competitive work force; it has 5 noble price winners, 9 national medals of technology and 5 national medals of science.
  8. IBM is diversified into the business of computer hardware and software, infrastructure services, consulting services and hosting services.
  9. According to Forbes 2000, IBM is the second biggest by market capitalization and the second biggest services employer.
  10. IBM seized more copyrights than any other U.S. based technology corporation and has 8 research laboratories globally.

 

 

Weaknesses

 

  1. IBM works in a reactionary mode, relying on supplier end-of-quarter information EMS self-reporting.
  2. It has the world’s most complex supply chain system.
  3. It does not have sustainable in-house supply chain system. 
  4. IBM relied on partners’ and suppliers’ reports and management systems. 
  5. The company’s product innovation and time limit add significantly to employee burnout. 
  6. The company’s sales of system and service segments are declining.
  7. Total assets are steadily decreasing.

 

 

Opportunities

 

  1. Increasing customers’ awareness of new technology around the globe is a good opportunity.
  2. Video game market revenue is predictable to arrive at $66 billion in 2012, as compared to $12 billion in 2008.
  3. The growth rate of Information Technology Markets in India, Russia, China, and Brazil is more than the global growth rate.
  4. Cheaper worldwide telecommunication costs unlock new markets because large number of people is attached to the Internet.
  5. Mobile phone markets are growing in developing countries therefore new software for mobiles could be introduced.
  6. Improving economic conditions after the financial crises 2007-10 will increase the purchasing power of consumers which will ultimately boost the revenues of the company.

 

 

Threats

 

  1. To maintain one of the most complex and largest supply chains in the globe.
  2. IBM is facing strong rivalry from the various local as well as multinational companies such as Microsoft, Dell, etc.
  3. The bargaining power of buyers is high because many alternative products are available to buyers. 
  4. Most of the countries are going for technological development. IBM may face government laws and regulations in different countries.
  5. Increasing cyber crime is also creating problems for the success of company.
  6. Life cycle of Technology is becoming shorter day by day.
  7. Heavy taxes in few countries force to increase the prices. 
  8. Currency exchange rates influence demand for application/operation and hardware. Similarly, changeable currencies can negatively decrease revenues in the worldwide marketplace.

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