Economics and Swot Analysis Essay

Before we start with the swot analysis of IBM lets understand what genuinely the SWOT is . The full cook of SWOT is strength ,weakness opportunity and holy terror . so the basic meaning of swot analysis of any political party is to judge this four factors of any company at certain apt(p) period of time . On the other hand the full form of PEST is Political, Economic, Social and Technological and the analysis of these four factors of any cheek is called pest analysis.SWOT ANALYSIS Strengths 1. Founded in 1896 as the Tabulating Machine union by Herman Hollerith, in Broome County, New York it is in truth much old and arranging of high repute . 2. the leading IT Manufacturer and service provider . the quaternary salientst technology company and 2nd most valuable global trade name . And they argon consistently in top 10 for last 20 years . 3. Company is handling 95% of all business in the 1000 most profitable companies in the US. Having his branch in nigh 200 places in this wor ld. 4. Its value almost $70 billion. They have all all over 450,000 employees worldwide. 5. The first company who decide to establish dedicated labs for research on technology innovation .Weakness 1. The company has become too large that the operating cost of the company is very high . 2. The workforce who are working is very much efficient but also very expensive in nature 3. IBM is mainly mutualist on incorporate clients the nature of them is changing day by day . 4. They have take leave much low share in pc market which is a growing segment right nowOpportunities 1. Increased globalization is an cardinal opportunity that can be secondhand by IBM in recount to balance the fluctuations in different economies. 2. IBMs small-medium business (SMB) has improved over the years but there is definitely a need to plus its market share to have an overall competitive edge. 3. IBM needs to fight back a competitive edge in the marketplace and innovation is disclose and working with IT-related companies to create new crossways in the ever changing market use patents to generate revenue.Threat 1. The fact that they are completely dependent on Microsoft (in their computer services division) could be a huge line of work if anything ever happened to them. 2. Hackers and sensitive information can be exposed and exploited by individuals and IBM needs to be innovative with regards to firewalls and protective software. 3. The supply ambit has very few suppliers, leaving IBM very little to negotiate with or switch to HP, Sun Microsystems are all competitors and are all threats to IBMs bottom line. Their competitors are able to create cheaper products and make more a considerable profit. Smaller companies that can move faster and provide less(prenominal) expensive products and services than IBM can become very costly to IBMs more lucrative bundles focusing more on larger companies with spacious budgetsPEST ANALYSISPolitical factorsThe heavy taxes in the UK make the IBM innkeeper products increase the weakness on the price factor, especially on the indemnity price IBM products.Economic factorsThe healthy economic environment with strong and motionless GDP in the all regions provides a good market for the product and service business of IBM. Although the GDP increase rate is not fast, the constancy could balance this disadvantage element. The service industry in the world contributed almost 73.4% to the GDP in 2006. That indicated that the high value added service market in the world is matured, and the customer experience on the service would be higher(prenominal) or more difficult to be satisfied. Socio cultural factorsPopulation and the internet users, in 2006, the population in just U.K it was nearly 60,609,153, and according to CIA, (2007), more than half of these people (37.6 million in 2005) were internet users. The well know about the internet indicated the opportunities of relevant products and servicesTechnological factorsIntern et, A thought from CIA, (2007) shows that there were 6,064,860 Internet hosts in 2006, and more than 400 Internet emolument Providers in 2000. In this sophisticated market, the opportunity and competition will be together.