Categories: SWOT Analysis

SWOT Analysis of IBM

  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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