IBM is subject to a variety of legal regulations and laws that impact its operations and performance. Wall, S., Minocha, S., & Rees, B. IBM can target these market segments accordingly. PESTEL analysis of the macro-environment. Global Economic Trends: Global economic trends can also have an impact on IBMs operations. 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.. It is important for IBM. Analyze the Ibm Sap external competitive environment to identify opportunities and threats. (2018). The remaining section under "Weakness" is available only in the 'Complete Report' on purchase. The power distance within any society shows the acceptance of hierarchy and income inequality. Intellectual property rights are important for IBM because they produce a lot of innovative products and services. Moreover, if the government of the country under consideration is not serious about protecting the intellectual property rights of business organizations, it will deter the entrepreneurs from investing in organizations due to high risk of ideas being stolen. Key Performance Indicators (KPI's) Report. Intellectual property issues also face the company, especially in efforts to expand operations in developing countries. Technology integration initiatives across industries, 1. IBM (International Business Machine Corporation) is a US tech multinational company. 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. identify the major external environmental forces that shape the strategy and competitive landscape and support its strategic decision making process. Technological change can impact IBM in a number of ways. Despite receiving thousands of patents each year, IBM continues to challenge itself in developing innovative goods and services in a rapidly evolving technological industry. For example, higher sales revenues are expectable, as target customers are increasingly capable of purchasing information technology products from the company. Concerns over confidential information of users being vulnerable to leaks 3. Moreover, a well-developed governance system with a democratic political environment makes the business environment more comfortable for international business organizations like IBM. [online] Available at: https://www.swotandpestle.com/ibm/ [Accessed 18 Apr, 2023]. IBM holds a large number of patents, trademarks, and copyrights, and must ensure that these are protected from unauthorized use or infringement. 3. need to consider are given below. Group, 73600, V09042019. For example, new business solutions for online operations can address such demand and further grow IBMs business. Some examples of environmental factors that IBM. Sitemap. 1, pp. Lastly, taxation is also a major concern for the company. Check your email IBM company regulations are designed to protect the companys interests and include things like code of conduct, anti-corruption policies, and data privacy policies. Mugwe, C. W. (2014). On the other hand, the remote or macro-environment presents considerable opportunity based on the rising use of customer service in evaluating product quality and business quality. Yksel, I. 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. 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. Paying careful attention to PESTLE factors can also enable businesses to improve their products and services to meet customers' needs. Do you want us to design a market survey or write a market research report as per your specific requirements? 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. Changes in weather and climatic conditions can influence business efficiency. A PESTLE Analysis is a useful tool for understanding the macro-environmental factors which could have an impact on a corporation. It started under the name of "Computing-Tabulating-Recording-Company" and later it became IBM. 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. International Journal of Business and Management, 7(24), 52. The marketing department of IBM. 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 (Political, Economic, Social, Technological, Environmental and Legal) Analysis of IBM (International Business Machines Corporation) highlights the company's key opportunities and maximum potential for growth in the global market. This report is shared in order to give you an idea of what the complete Competitor Analysis Report will cover after purchase. Chat with us Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. IBM. It is an American corporation, and its headquarters are situated in New York but the company functions and operates all over the world. This way, the organisation can understand the direction in which the environment is changing and adapt to operate with those . The political factors in the IBM PESTLE Analysis can be explained as follows: IBM is one of the biggest Information Technology companies in the world headquartered in the US and operates in more than 175 countries. In this regard, IBM must address the following legal external factors relevant in the information technology industry: Improving overall intellectual property protections are an external factor that creates opportunities for IBMs business expansion by reducing intellectual property violations in the information technology industry. A holistic approach to the threats and opportunities shown in this PESTEL/PESTLE analysis can empower IBM in its growth and expansion efforts in the information technology industry. This element of the PESTEL/PESTLE analysis shows that IBM has growth opportunities based on market penetration, customer service, and online services. can draw the negative response from media, environment protection groups, customers and the general public. IBM. Charles Ranlett Flint was the founder of IBM, and he laid the foundation of the company on June 16, 1911. Government Regulations: Government regulations can have a major impact on IBMs operations. Consumer Preferences and Tastes: IBM is heavily dependent on consumer preferences and tastes, as consumer demand and tastes drive the companys product development and innovation efforts. IBM, also known as Big Blue, succeeds by developing competencies to exploit the opportunities and overcome the threats based on these external factors. IBM. I found the analysis reports of SWOT & PESTLE.com very comprehensive and insightful. Ignorance in this regard can cause undesired circumstances for IBM., such as- hurting competitive advantage as a result of intellectual property rights violation and harmed organizational image due to violation of consumer/employee/environment protection standards. Quizzes test your expertise in business and Skill tests evaluate your management traits. The focus should also be kept on decreasing cybercrime. These e-technologies correspond to potentially new market segments in the remote or macro-environment. The following is a PESTEL analysis of IBM: The political factors affecting IBM are largely related to its global operations. It helps to identify its political, economic, social, technological, legal, and environmental factors. Understanding the demographic trends, power structures, consumers spending patterns and shared beliefs can help IBM. Strategy planning process often requires five steps -. Pearson Education. Annual Report - https://www.ibm.com/annualreport/assets/downloads/IBM_Annual_Report_2022.pdf IBM SWOT Analysis Weaknesses to make informed decisions: The economic development of a country directly influences organizational performance. MBA Skool InstallCourses Home Courses Concepts SWOT 1. For example, the external factors in the technological aspect of the external analysis can guide the companys innovation programs. For instance, IBM has the opportunity to enhance its protective measures against cyber attacks. IBM operates in a dynamic environment where it is influenced by - consumer . 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. The company operates in over 170 countries and is affected by economic conditions in each of these markets. Top Quality. Firstly, the global economy is a significant factor impacting IBMs business. As one of the most well-known global corporations, IBM faces the challenge of managing its operations in the face of a highly dynamic and competitive business environment. This report is shared in order to give you an idea of what the complete Company Overview Report will cover after purchase. However, considerable threats are also determined in this external analysis of IBMs information technology business. For instance, the company can develop new products for smart homes, as a way to diversify the business while utilizing the organizations technological capabilities. Technological: IBM operates in a highly technology-driven industry, and must remain at the forefront of technological advances. In some countries, recycling has almost become a business norm. The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. The names and other brand information used in the PESTLE Analysis section are properties of their respective companies. Warning! to prioritize and focus on marketing the eco-friendly nature of their products over customary value propositions. 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. Similarly, anti-discrimination laws (like equal employment opportunity) also need to be carefully studied when developing human resource practices as discriminatory suits against employer harm the organizational image and affect organizations ability to attract and retain the talent. 1. Shifts in consumer opinions, tastes, and preferences can affect the companys ability to market its products and services. They have to make sure that their products are safe and comply with all the safety standards. Changes in government policies or regulations can have a direct impact on the companys operations and profitability. PESTLE analysis involves tracking the changes in the business environment to discover facts about external factors that can help the organisation evaluate risks, minimise potential threats, and maximise opportunities. * By clicking on "Buy Now" you agree to accept our ", On purchase the IBM SWOT & PESTLE Analysis PDF report will reach you. Aug-22-2018. Additionally, IBM must also be aware of any political changes that may affect its operations in a particular country. The PESTEL (Political, Economic, Social, Technological, Environmental and Legal) Analysis of IBM (International Business Machines Corporation) highlights the companys key opportunities and maximum potential for growth in the global market. The company has its headquarters based in the US in New York. Additionally, the company is subject to the economic cycles of the markets where it operates, which may affect its sales and profits.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[580,400],'howigotjob_com-medrectangle-4','ezslot_4',193,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-medrectangle-4-0'); Social: IBM is a global company and must be prepared to address the social needs of the markets in which it operates. 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. With Buffets faith shaken in the company, IBM is likely to face further scrutiny over its performance in the coming quarters. Pestle analysis is conducted in IBM to identify and analyze external forces that may have an impact on their business. 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 legal factors in the PESTEL Analysis of IBM are company regulations, employment laws, and intellectual property rights. This has allowed IBM to expand its operations into new markets and to continue to invest in research and development(Date, 2006). Detailed SWOT Analysis of IBM Strength This section is available only in the 'Complete Report' on purchase. Developing international strategies. The main strategy of IBM is to delivers their high value added services (or software) to customers through their server product. Over the next five to ten years, the worldwide quantum computing business is expected to expand from hundreds of millions of dollars to billions. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. The data protection has become an important issue due to consumers privacy and security concerns. The product element in IBMs marketing mix or 4Ps should change accordingly. In 2020, IBM announced its plan to start a new company NewCo which will look into its Managed Infrastructure Services business as a publicly-traded company. The political environment of a country comprises multifaceted factors. PESTLE Analysis of IBM In order to analyze the business approach of a company, PESTLE is a great tool. For example, increasing renewable energy utilization can satisfy the stakeholder group of communities concerned about the effects of the information technology industry on the environment. Economic: IBM operates in a highly competitive and globalized market with a variety of factors influencing its economic performance. The influence of the ecological situation on IBM and the information technology industry is examined in this element of the PESTEL/PESTLE analysis. can take advantage of higher labor productivity. 5. 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. Many technology companies coming up with internet boom have reduced the dominance of IBM 2. 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. Additionally, it must also be aware of the emerging trends and technologies that may affect its operations.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[728,90],'howigotjob_com-box-4','ezslot_8',194,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-box-4-0'); Environmental: With global climate change and the increasing demand for sustainable operations, IBM must be aware of the environmental implications of its operations. The business and marketing strategies are also influenced by migration. Managers can use the results of this PESTEL/PESTLE analysis of IBM as basis for developing strategies and programs to strengthen the business. This report is shared in order to give you an idea of what the complete Subsidiaries, Partnerships and Collaborations Report will cover after purchase. to adopt the niche marketing strategies. Roper, K. (2012, November). Our model papers and solutions are purely meant for In order to turn things around, IBM needs to take a close look at the macro environmental factors affecting its business. 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. 24-27). Increasing the adoption of cloud services provides a good opportunity for IBM. On the other hand, cybercrime is another external factor that threatens the company. 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. For example, recent economic downturns in Europe and China have negatively impacted IBMs financial results. Integrity. Strong global presence in leading technology products and solutions, 1. 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