27.1 Market Drivers. 1. IBM SWOT and PESTEL 1. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. IBM is facing serious competition from other major players in the market such as Amazon, Microsoft and Google and that has led to investors doubting its capability to protect its market. Strong global presence in leading technology products and solutions, 1. Ranging from political factors to environmental factors, each factor comprises various variables that influence the strategic decision making process of business organizations like IBM. For example, some information technology market segments could attract industrial robotics firms to develop their own products to compete against some of IBMs products. PESTLE Analysis of IBM examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Digital Marketing and Social Media Strategy Analysis Report. Which tech firms will lose out the most in the China-US trade war? IBM PESTEL Analysis IBM PESTEL Analysis Posted by Zander Henry on Aug-22-2018 PESTEL analysis is a widely used strategic planning and management tool. This report is shared in order to give you an idea of what the complete Porter's Five Forces Analysis Report will cover after purchase. Over the next five to ten years, the worldwide quantum computing business is expected to expand from hundreds of millions of dollars to billions. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. The application of PESTEL analysis can help IBM. Bureaucracy and corruption negatively influence the business environment. This will allow IBM to focus on its hybrid cloud platform and artificial intelligence capabilities and focus on its clients digital transformation journey. International Business Machines Corporation (IBM) employs organizational capabilities to continue growing the business, despite challenges based on the opportunities and threats in the information technology industrys remote or macro-environment, such as the ones outlined in this PESTEL/PESTLE analysis of the firm. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. In IBMs case, the following political external factors are significant: Governments move for digitization is an external factor that creates opportunity for IBM to offer information technology products that address this need in governmental organizations. These new entrants have interests in diversifying their businesses and impose a moderate threat against the company (Read: Porters Five Forces Analysis of IBM). However, the trend also presents an opportunity to expand business operations outside the traditional market for information technologies. The company operates in over 170 countries and is affected by economic conditions in each of these markets. Shifts in consumer spending, interest rates, exchange rates, and other economic indicators can affect the companys ability to access capital and labor, as well as its ability to compete in the global market. In order to stay ahead of the curve, the company needs to continually invest in research and development (R&D). The political environment of a country comprises multifaceted factors. IBM PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. can use the information retrieved from social, environmental analysis to target the consumer groups and increase the appeal of offered products to potential buyers. Over the years . IBM provides services like IBM Cloud, IBM Watson which is AI for business, IBM Consulting, IT Infrastructure and IBM Security which is AI-powered, automated endpoint security. IBM. For example, the company must comply with government regulations related to data privacy and security, as well as antitrust laws. The rapid technological advancement and technological diffusion across the globe have increased the importance of understanding technological factors during the strategic decision making process. IBM. However, it faces stiff competition from other tech giants such as Google and Amazon in this area. In recent years, IBM has been facing a number of challenges. Subscribe now to get your discount coupon *Only We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Are you looking for a report which is not covered on our website? is present in different countries, each having own political tensions. The high fluctuation on local currency can be a cause of serious concern for IBM. IBM. IBM has a dedicated trust center that focuses on protecting their customers and business with privacy and security. Springer Berlin Heidelberg. Charles Ranlett Flint was the founder of IBM, and he laid the foundation of the company on June 16, 1911. For example, the company has opportunities to develop products to satisfy demand for digitization in governments and related organizations, and to satisfy market demand for online services. IBM. They are collaborating with clients for hybrid cloud and AI solutions to some of the world's most pressing sustainability issues, including agriculture, transportation, and the upgrading of their electric grid. Low interest rates can encourage businesses to invest in technology, which is good for IBM, but high interest rates can lead to decreased demand for its products as businesses cut back on spending. IBM PESTLE Analysis assesses the brand on its business tactics across various parameters. * They will have some level of impact on it. IBM. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. should develop local teams and develop local partnerships for understanding the societal attitudes and norms to tailor marketing strategies according to unique cultural context. The product element in IBMs marketing mix or 4Ps should change accordingly. A detailed understanding of the economic environment can help IBM. Berkshire reduced stake in the company in 2017 with concerns regarding increasing competition faced by IBM in cloud segment and declining global server market size. IBM. For example, the company can benefit from growth opportunities in the remote or macro-environment through the use of high economies of scale, which is one of the business strengths identified in the SWOT Analysis of IBM. Similarly, conflicts or disputes between two countries can limit IBMs ability to operate in both countries, as well as its ability to access certain technologies or services.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[336,280],'howigotjob_com-large-mobile-banner-2','ezslot_16',601,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-large-mobile-banner-2-0'); One of the primary economic factors that affect IBM is the global economy. High GDP also signals the consumers ability to spend more on offered products. IBM has customers, partners, and suppliers in many different countries, and the companys operations can be affected by changes in foreign relations. can benefit from it and invest in renewable technologies to ensure long-term sustainability. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. The observation of social class stratification is also important for IBM. 24-27). Like, it may pressure the IBM to give an unfair wage raise, or may halt the production process by giving a strike call. Studying and forecasting the consumers purchasing power based on relevant economic indicators is important to analyze the customers interests and spending patterns. Many technology companies coming up with internet boom have reduced the dominance of IBM 2. Most recent surveys suggest that around 76 % students try professional In addition, global economic trends can affect the demand for IBMs products and services, as well as the prices it can charge. What are some opportunities that IBM can benefit from? IBM SWOT & PESTLE Analysis - SWOT & PESTLE.com. Legal is the sixth factor of PESTEL analysis. Integrity, Essay Writing By analyzing the environmental environment, IBM can identify changes that could affect their business and plan accordingly. In the IBM PESTLE Analysis, the environmental elements affecting its business are as below: Environmental norms, laws, and regulations fluctuate depending on the market. While the operations in Ukraine offices have been impacted, the companys operations IBM has also ceased their operations in Russia due to the start of military operation in Ukraine. For example, IBM has been subject to investigations by the US government over its business dealings in China and Russia. and cannot be used for research or reference purposes. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. IBM. It can help corporations identify potential opportunities and risks, and help identify areas that might need extra research and analysis.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[728,90],'howigotjob_com-leader-3','ezslot_18',605,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-leader-3-0'); A PESTLE analysis of IBM can help identify both broad and specific areas that may present challenges or opportunities for the company. This report is shared in order to give you an idea of what the complete Competitor Analysis Report will cover after purchase. IBM. IBM claims to have bolstered their battle against climate change through leadership and innovation. In case you want this report emailed straight into your email inbox, kindly share your details below. AI has been widely embraced by IBM as a vehicle for automating processes and improving decision-making.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[728,90],'howigotjob_com-mobile-leaderboard-1','ezslot_20',603,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-mobile-leaderboard-1-0'); Finally, the emergence of blockchain technology has had a significant impact on IBMs operations. IBM can benefit from a better understanding of demographic trends, power dynamics, consumer buying habits, and common views. Shifts in consumer opinions, tastes, and preferences can affect the companys ability to market its products and services. By analyzing the technological environment, IBM can identify changes that could affect their business and plan accordingly. Thus, in this element of the PESTEL/PESTLE analysis, considerable opportunities and threats affect IBMs standing in the global market. IBM. 27.3.1 Political Factors. However, despite such trend of improving protections, the company still faces issues in developing markets. Entering in markets where technological advancement has not reached the maturity means IBM. The company must tailor its products and services to meet the needs of the various markets it operates in. For instance, offering more cloud platform products can increase the companys revenues. As IBM. For different referencing styles and detailed guidelines, please click here. A strategic framework for technology evaluation. Operating in countries with high corruption level and weak law enforcement makes the business environment increasingly unpredictable for IBM. In case you need the complete report please purchase using the buy options displayed. are influenced by the financial market efficiency as operating in highly efficient financial markets leads towards improved liquidity position and strengthened ability to enter new markets. Determinants for effective information technology outsourcing: a case of international business machines corporation Kenya (Doctoral dissertation). For instance, IBM can cooperate with the governments of developing countries to address intellectual property concerns while boosting the companys brand recognition and popularity in these markets. Yksel, I. In 2021, the annual expenditure was $6.567 billion. This report is shared in order to give you an idea of what the complete M&A Report and Analysis Report will cover after purchase. International Business Machines Corporation (IBM) aligns its organizational culture with business goals for leadership in the information technology industry. A close eye should be kept on analyzing the 5G and determining its potential to deliver positive business outcomes through enhanced user experience, increased speed and expanded access. Issa, T., Chang, V., & Issa, T. (2010). Political instability in these and other countries can also impact IBMs business, as can trade disputes and tariffs. Related: Macroeconomic Factors: How They Impact the Economy IBM. Businesses are becoming increasingly technological, hence the importance of the T in PESTLE analysis. [online] Available at: https://www.swotandpestle.com/ibm/ [Accessed 18 Apr, 2023]. To gain an understanding of the external forces that may affect IBMs operations, a PESTLE analysis of the company may be conducted.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[728,90],'howigotjob_com-medrectangle-3','ezslot_6',191,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-medrectangle-3-0'); Political: IBM operates in a highly regulated industry with governments around the world playing a major role in the technology sector. Data Masking Technologies Software Market Product Outlook Chapter 5. * By clicking on "Buy Now" you agree to accept our ", On purchase the IBM SWOT & PESTLE Analysis PDF report will reach you. Overhauling of H1B work visa program by Trump administration, 1. These actions can contribute to the effectiveness and success of the programs and initiatives in IBMs corporate social responsibility strategy. (2007). To conclude, the above IBM PESTLE Analysis highlights the various elements which impact its business performance. Increasingly stringent regulations for e-waste, 1. Secondly, currency exchange rates are also a major consideration for the company. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. The technological environment can also have a major impact on IBMs operations. The external analysis also identifies opportunities to diversify IBMs business based on the external factor of technological integration in industries and markets. The growing inequality in many countries is altering the power structure, which has serious implications for international business organizations like IBM. IBM has always lefts its remarks in the technology sector with its excellent innovation, research, and development. Grnig, R., & Morschett, D. (2017). By assessing the economic environment, IBM can identify potential risks and opportunities and develop plans to take advantage of them. Moreover, a well-developed governance system with a democratic political environment makes the business environment more comfortable for international business organizations like IBM. Help, Academic Key Performance Indicators (KPI's) Report. Employment laws can have a big impact on IBM because it is a global company with employees in many different countries. This helps both IBM and their clients to focus on their strong areas of business. For instance, the company would not use the same advertising approach in China as it would in the United States. should invest time on understanding the consumption motivations and social trends that define the consumption behavior. This report is shared in order to give you an idea of what the complete Segmentation, Targeting and Positioning (STP) Analysis Report will cover after purchase. IBM SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting. Developing international strategies. Concerns over confidential information of users being vulnerable to leaks 3. Loss of confidence expressed by major shareholder, 1. This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. In this external analysis case of IBM, strategies must address the effects of the following ecological external factors: IBM has an opportunity to improve its sustainability by utilizing more renewable energy and by recycling its byproducts and production waste. The pace of technological change is also increasing, which can make it difficult for IBM to keep up. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. The PESTEL/PESTLE analysis is a strategic management instrument that identifies the most significant political, economic, sociocultural, technological, ecological and legal (PESTEL/PESTLE) external factors relevant to the company. Data Masking Technologies Software Market Application Outlook Chapter 6. Therefore, improving processes for legal compliance and cooperation with other organizations can address the threats and opportunities in this element of the PESTEL/PESTLE analysis. Currently, IBM. IBM's core strength lies in its System/360 and System/370 mainframe series. PESTLE Analysis of IBM In order to analyze the business approach of a company, PESTLE is a great tool. IBM PESTEL/PESTLE Analysis & Recommendations International Business Machines Corporation (IBM) employs organizational capabilities to continue growing the business, despite challenges based on the opportunities and threats in the information technology industry's remote or macro-environment, such as the ones outlined in this PESTEL/PESTLE analysis of the firm. For example, higher sales revenues are expectable, as target customers are increasingly capable of purchasing information technology products from the company. Increasing the adoption of cloud services provides a good opportunity for IBM. By conducting this analysis, IBM can identify potential risks and opportunities and develop plans to address them. Changes in laws and regulations can affect the companys ability to access capital and labor, as well as its ability to compete in the global market. Still, the same external factor in the context of developing markets is considered an opportunity in this external analysis. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. Check your email BIM Implementation: PESTEL Drivers & Barriers (Cross-national Analysis). This element of the PESTEL/PESTLE analysis shows that political changes and trends present opportunities for IBMs business. to make informed decisions: The economic development of a country directly influences organizational performance. Develop and implement a diversification strategy to exploit the technological integration in various industries and markets. Technological change can impact IBM in a number of ways. to develop new products quickly, increase product range diversity, integrate flexibility into the value chain and develop healthy business relationships with value chain partners. All Rights Reserved by Barakaat Consulting. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. For instance, IBM has the opportunity to enhance its protective measures against cyber attacks. IEEE. identify the major external environmental forces that shape the strategy and competitive landscape and support its strategic decision making process. A well-developed infrastructure facilitates the business environment and increases the growth potential of the gold industry in the respective country. Also, the company has the opportunity to develop and offer advanced cyber-security products to its clientele. IBM also worked on manufacturing the Summit, an analysis of a companys strengths, weaknesses, opportunities, and threats, What is PESTLE Analysis? Sustainable business strategies and PESTEL framework. Loss of confidence expressed by major shareholder: IBM showed stagnant growth over the last few years registering more than 20 straight quarters without revenue growth as of 2017. By scrutinizing the external environment, IBM can gain insights into how external forces may shape the future of the corporation and its operations. Conversely, failure to keep up with the latest technological trends can lead to reduced sales and profits. Offering luxury products at premium prices to a market where the high-end market is considerably small in number will require IBM. As a technology company, IBM is heavily reliant on the latest technological advancements to maintain its competitive advantage. Leveraging technology for environmental protection, Extends the strategy and design expertise of IBM iX, Strengthened the IBM Connections portfolio and Launched new offering - IBM Connections Engagement Center, Strengthens IBM's Securitys portfolio by adding C-Suite decision making solution, Expand disaster recovery services for Hybrid cloud, Risk management and regulatory compliance, Transform regulatory compliance with Watson, Help developers modernize mainframe applications for digital business, IBM Segmentation, Targeting and Positioning (STP) Analysis. Furthermore, IBM is subject to a range of intellectual property laws that protect its inventions and intellectual property rights. IBM SWOT Analysis Weaknesses can draw the negative response from media, environment protection groups, customers and the general public. This is reflected in their commitment to achieving net-zero emissions of harmful gases by 2030 and to cut carbon emissions by enacting a carbon tax. UCF Research Guides. Political factors can range from government regulations and policies to international trade agreements and foreign relations. Each society has distinctive norms and values that play an important role in shaping consumer behavior. Economic recession and changing government policies can impact business operations IBM Competitors If you continue to use this site we will assume that you are happy with it. IBM is a global corporation, and the external forces that they need to be aware of can range from political, economic, social, technological, legal, and environmental factors. IBM. Big tech Silicon Valley firms slam Trumps new visa rules: https://www.thehindu.com/sci-tech/technology/big-tech-silicon-valley-firms-slam-trumps-new-visa-rules/article31903703.ece This report is shared in order to give you an idea of what the complete Ansoff Matrix Analysis Report will cover after purchase. Segmentation, Targeting and Positioning (STP) Analysis Report. of the box and hire Case48 with BIG enough reputation. should also attempt to understand the degree of consumer ethnocentrism and consider the country of origin effect to determine local consumers evaluation of foreign products. IBM (International Business Machine Corporation) is a US tech multinational company. IBMs business strategy is designed to support two major goals - helping clients to move to the digital era by bringing together innovative technology and industry expertise, and providing long-term value to shareholders. Culture is considered an important variable by international marketing managers. This section covers many brands and companies. In such an environment, IBM. For instance, the proliferation of mobile devices and cloud computing has led to a decline in demand for IBMs traditional mainframe and server products. IBM is abbreviated as "Big Blue." It is a multinational consulting company and IT technology-based in Armonk, New York, USA. Apr 17, 2023 (Heraldkeepers) -- The Market Research report 2023-2030 is an in-depth analysis of the Global Medical Imaging AI Platform Market. Sitemap. IBM. Economic: IBM operates in a highly competitive and globalized market with a variety of factors influencing its economic performance. Moreover, IBM's high-priced lease strategy, supported by excellent customer support, enhances the company's fortunes. estimate the growth trajectory of industry and organization. It has been reviewed & published by the MBA Skool Team. The first factor to consider is the rise of cloud computing. The main strategy of IBM is to delivers their high value added services (or software) to customers through their server product. The high interest rate will encourage the attitude towards investment and increase growth opportunities for IBM. Below are the economic factors in the PESTLE Analysis of IBM: IBM must comprehend economic elements such as foreign exchange/interest rates, labor market conditions, inflation, and saving rates, among others, because they influence the country's overall economic climate. If IBM. I found the analysis reports of SWOT & PESTLE.com very comprehensive and insightful. Moreover, the business performance of IBM. This report is shared in order to give you an idea of what the complete Risk Analysis Report will cover after purchase. European Journal of Innovation Management, 16(3), 285-300. Growing economies offer wide-ranging growth opportunities to the IBM. It started under the name of "Computing-Tabulating-Recording-Company" and later it became IBM. Intellectual property rights are important for IBM because they produce a lot of innovative products and services. Establish a cooperative movement with governments and other organizations to improve intellectual property protections. 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