IBM – International Business Machines SWOT Analysis
Strengths
The Advanced business action management and innovative culture of IBM is one of its strengths.
The successful strategic outsourcing, mergers and acquisitions of IBM are its strengths.
High economical consummation centre and flexible marketing management of the company is the reason for its success.
The creative service that International Business Machines provides is its strength. It is handling almost 95% of business tasks of top 1000 companies all over the world.
The company have some of the world’s fastest important frame and many subverted technologies like: speech recognition software, chromatic gene, supercomputers etc. Through such extraordinary and innovative technologies IBM is able to wage some of the prizewinning back hand facilities.
The most recent merge of IBM is with the Lenovo; Lenovo is providing the outer element profession and IBM providing all of its latest chip technology can result in greater success of the company.
Today, IBM has entered a wide range of fields including Business continuity, snap services, End user services, integrated subject services, IT strategy and architecture services etc. The good will of the company along with its huge base of loyal customers is one of its greatest strengths.
Weaknesses
At International Business Machines there are high costs involved in the value chain and also the company is dealing with some acquisition issues.
Since, IBM spends quite a lot on its research and development where as the implementation of new processes is a little difficult. This is also because there are very few suppliers in the value chain o IBM and it can act as a loophole.
IBM has a good position in the market but needs to change its strategies with the change in market. This also causes the cost to the company to be greater as compared to other software and hardware dealers.
Opportunities
The rising demand for wireless and internet services provides the company new opportunities to explore.
There are many possible acquisitions and merger opportunities that the company can seize and increase its market share greatly.
By making its distribution channels stronger and increasing its retail outlets and suppliers can result in more profits for the company.
The rising energy prices and cost makes running and operations of the business difficult. IBM has addressed by making its strategy related to environment. With its green strategy it is able to save up to forty percent of energy costs.
Threats
There are many competitors like HP, Dell, Accenture and Microsoft etc that have captured large segments of the market.
The market has perfect competition state and switching cost is low for the customers.
At IBM, there is a constant high threat of new substitutes as well as service switching.
The technology market is very flexible, entry is easy and even small companies like Compaq can reduce the market share of IBM greatly.
The global recession is a large threat for IBM. The company prices are higher as compared to other service providers in the same industry therefore; the IBM needs to take effective cost reduction strategies to deal with the unstable market conditions.
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