The political environment can influence IBM in many ways. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. This external analysis also points to governmental action that improves data protection. IBM. Similarly, high trade restrictions can make the business environment more complex by affecting the exports and harming relationships with foreign trade partners. The following technological external factors affect IBMs business capabilities: IBM faces the external factor of technological integration in various industries and markets. Additionally, IBM must be sensitive to cultural differences when marketing its products and services. I found the analysis reports of SWOT & PESTLE.com very comprehensive and insightful. IBM. 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. Changes in governments and policies should be kept in mind while implementing and executing plans in different countries. 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. should carefully consider the on-going technological innovations to stay ahead of the competition. of the box and hire Case48 with BIG enough reputation. The power distance within any society shows the acceptance of hierarchy and income inequality. 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. by adamkasi | Apr 9, 2023 | Companies | 0 comments. IBM's global presence necessitates careful consideration of these variances to avoid unfavorable situations. The data protection has become an important issue due to consumers privacy and security concerns. They have to make sure that their products are safe and comply with all the safety standards. please submit your details here. The external analysis also identifies opportunities to diversify IBMs business based on the external factor of technological integration in industries and markets. Revista ESPACIOS, 39(16). The demand and supply of labor determine the wage rates and supply of skilled workforce. High GDP also signals the consumers ability to spend more on offered products. PESTEL analysis is critical to understand the external threats & opportunities arising because of the macro environment . UCF Research Guides. IBM SWOT Analysis Strengths First mover in cloud computing solutions for enterprises. For example, some information technology market segments could attract industrial robotics firms to develop their own products to compete against some of IBMs products. A SWOT Analysis of International Business Machines Corporation (IBM) shows that the business has strengths and opportunities to grow despite its weaknesses and the threats in the information technology industry. The growing use of mobile phones and social networking sites must be considered when developing marketing and communication strategies. This element of the PESTEL/PESTLE analysis shows social trends and changes that affect how customers and employees interact with the information technology business and its products. IBM counts Berkshire Hathaway headed by Warren Buffet as one of its premier shareholders held an 8.5% stake in IBM as of 2016. can increase the market share by focusing on emerging technological innovations. As the use of cloud computing has increased over the past few years, IBM has been able to capitalize on this trend. Sustainable business strategies and PESTEL framework. In addition, global economic trends can affect the demand for IBMs products and services, as well as the prices it can charge. 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. Environmental, Social, and Governance (ESG) Analysis Report. These factors play an important role in running the business successfully. IBM ranks 19 on the Just 100 list which is judged on various parameters like attracting workers, community service, privacy for customers and efforts towards sustainability. The high interest rate will encourage the attitude towards investment and increase growth opportunities for IBM. should study how intellectual property rights are protected in the host country and make the business strategies accordingly. Murphey, M., & Gause, R. (1974). IBM, or International Business Machines, is an American multinational technology company. However, considerable threats are also determined in this external analysis of IBMs information technology business. For example, the external factors in the technological aspect of the external analysis can guide the companys innovation programs. Economic recession and changing government policies can impact business operations IBM Competitors estimate the growth trajectory of industry and organization. BIM Implementation: PESTEL Drivers & Barriers (Cross-national Analysis). Date, L. N. (2006). Gillespie, A. For example, the cybercrime threat imposes significant pressure on the company and its clientele. Loss of confidence expressed by major shareholder, 1. Determinants for effective information technology outsourcing: a case of international business machines corporation Kenya (Doctoral dissertation). In. by Haseeb | Jan 29, 2017 . Daidj, N. to get Coupon Code. IBM. However, IBM's annual revenue has remained flat, and the company's Watson software system has yet to deliver the anticipated rebound. Copyright 2023. IBM. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. Do you want us to design a market survey or write a market research report as per your specific requirements? MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals. The environmental standards, laws and regulations vary across different markets. Conversely, failure to keep up with the latest technological trends can lead to reduced sales and profits. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. Moreover, IBM's high-priced lease strategy, supported by excellent customer support, enhances the company's fortunes. This threat comes in the form of potential cyber attacks on online infrastructure. Following technological factors can influence the business performance of IBM. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. Aithal, P. S. (2017). In addition to these laws, IBM is subject to the laws of the jurisdictions in which it does business. If IBM. Establish a cooperative movement with governments and other organizations to improve intellectual property protections. Inability to protect intellectual property rights can result in losing competitive advantage, which may weaken the positioning of IBM. Each society has distinctive norms and values that play an important role in shaping consumer behavior. Detailed SWOT Analysis of IBM Strength This section is available only in the 'Complete Report' on purchase. IBM can determine the growth trajectory of industry and organization by having a thorough understanding of the economic environment. The company must tailor its products and services to meet the needs of the various markets it operates in. Some examples of environmental factors that IBM. T. hirdly, interest rates are another key economic factor impacting IBM. 4. Legal systems affect the company and its remote or macro-environment through regulations. The company is also seeking to capitalize on the growing trend for artificial intelligence (AI) with its Watson platform. PESTEL analysis of the macro-environment. Operating in such a market can lower the production cost of IBM. For example, governments are increasingly facilitating the implementation of intrusion detection systems, thereby presenting opportunities for the company in providing technological tools for such implementation. The presence at international stage increases the companys sensitivity to changes in political environments of different countries. Annual Report - https://www.ibm.com/annualreport/assets/downloads/IBM_Annual_Report_2022.pdf Quantum computing appears to be one of the most promising of the company's current activities, since several businesses seek to use it to solve a variety of problems that are more complicated than classical computers can handle. The SWOT analysis for IBM is presented below: This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. If you have BIG dreams to score BIG, think out However, the trend also presents an opportunity to expand business operations outside the traditional market for information technologies. By conducting this analysis, IBM can identify potential risks and opportunities and develop plans to address them. It is also essential to regularly monitor the external environment to adjust the companys strategic planning according to environmental changes. IBM's corporate social responsibility culture is built on environmental leadership. For different referencing styles and detailed guidelines, please click here. In some countries, recycling has almost become a business norm. First, the company has benefited from a strong global economy. Impact of Russia-Ukraine war on business: Russia initiated a special military operation against Ukraine in February 2022, which has created major chaos in Eastern European region. We are here to help. New technologies can provide IBM with new opportunities to grow and expand its businesses. For example, IBMs healthcare solutions must be compliant with regulations in each country they are sold in. Digital Marketing and Social Media Strategy Analysis Report. Financial Times Prentice Hall. Within PESTEL analysis, political factors exert a strong influence on the long-term sustainability and profitability of IBM. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. 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. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. This report is shared in order to give you an idea of what the complete Digital Marketing and Social Media Strategy Analysis Report will cover after purchase. can take it as an opportunity and adopt green business practices to win the trust of stakeholders. Digital commerce and the rise of alternative payments methods: https://www.mckinsey.com/industries/financial-services/our-insights/banking-matters/digital-commerce-and-the-rise-of-alternative-payments-methods Political instability in these and other countries can also impact IBMs business, as can trade disputes and tariffs. Group, 73600, V09042019. Despite receiving thousands of patents each year, IBM continues to challenge itself in developing innovative goods and services in a rapidly evolving technological industry. (2012). Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. Firstly, the global economy is a significant factor impacting IBMs business. : https://techwireasia.com/2020/09/which-tech-firms-will-lose-out-the-most-in-the-china-us-trade-war/ The technological factors in the PESTLE Analysis of IBM are mentioned below: Being an IT company, it becomes crucial for IBM to be at the forefront in technological advancements and improvements. For example, higher sales revenues are expectable, as target customers are increasingly capable of purchasing information technology products from the company. Their move to the cloud has allowed them to offer their customers more efficient and cost-effective solutions for their data storage and computing needs. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. to adopt the niche marketing strategies. Following are the social factors impacting IBM PESTLE Analysis: Organizational culture is heavily influenced by cultural conventions, values, and trends. IBMs mission statement states To lead in the invention, development and manufacture of the industry's most advanced information technologies, including computer systems, software, storage systems and microelectronics and to be the best financial services company in the world. IBMs vision is Innovation through cooperation.. Firstly, IBM is subject to a range of national and international laws that regulate the conduct of business, such as competition laws, environmental regulations, labor laws, and tax laws. PESTEL Analysis is a strategic management tool that IBM leadership can use to make better decisions. Your email address will not be published. This condition in the remote or macro-environment is a challenge against IBMs strategies of generating higher revenues in developing markets. This understanding helps to evaluate the criticality of external business factors for any brand. The high fluctuation on local currency can be a cause of serious concern for IBM. However, it faces stiff competition from other tech giants such as Google and Amazon in this area. In case you want this report emailed straight into your email inbox, kindly share your details below. Browse analysis of more brands and companies similar to IBM PESTLE Analysis. Proposal, Question is present in different countries, each having own political tensions. It is an American corporation, and its headquarters are situated in New York but the company functions and operates all over the world. 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