Table of Contents
Internal and External Factors Affecting IBM..3
Strategic Choices of IBM..8
Reduction of the Cost of Service.10
Appendix A: IBM: Background Information..14
Table of Figures
Figure 1 SWOT Analysis of IBM..4Figure 2 Openness Strategy.9
Figure 3 Reduction of the Cost of Service.10
As of now, there are different internal and external factors that are affecting the performance of each and every individual in an organization and the overall performance itself. In addition, it can be seen that those companies that are operating in the global market are the one that are directly affected due tothe different changes. The said change is driven by transformation of local and international market such as the financial and economic situation of the world, trends in the local and international market as well as the changing tastes, preferences and behaviors of the customers. All of the said factors are considered as connected with each other, thus creating changes that are important in orderto sustain the position of a company in the global market.
As a result, more and more companies are focusing on the process of evaluation of their current position in the local and global market which focuses on analyzing their internal strengths and weaknesses as well as the different external environment factors that can cause threats and opportunities for the company. All of the said factorscan be used in the process of decision-making in different activities and plans that are needed to be done in order to ensure competitive advantage and position in the market.
Internal and External Factors Affecting IBM
International Business Machines Corporation (IBM), also known as the Big Blue is a multinational computer technology and consulting corporation that is located in Armonk, NewYork, USA. IBM is considered as one of the few Information Technology (IT) companies with a continuous history that dates back to the19th century. The company sells computer hardware and software and offers different infrastructure services, hosting services as well as consulting services in different IT areas from mainframe computers to nanotechnology. Aside from that, IBM is considered as theworld’s largest computer history and considered as the largest IT employer in the world with 355,000 employees
SWOT analysis is a strategic planning tool that is use n order to evaluate the strength, weaknesses, opportunities and threats that are involved in a project, business venture or in any other situation that requires a decision. Thus, the process of sizing up the internalstrengths and weaknesses as well as the external opportunities and threats helps to provide a quick overview of the strategic situation of an organization (2007, ).
Figure 1 SWOT Analysis of IBM
Strengths · First in the industry and has long history; · Strong brand image and reputation; · Strong global presence; · Valuable intellectual property, software, patents and ideas;· Talented andknowledgeable human resource; · Vast Research and Development (R&D). |
Weaknesses · Declining share in the market; · Has highly paid huge population of employees; · Big corporation; · Deep and entrenched management; · High Operating Cost. |
Opportunities · Globalization, expansion in other countries and outsourcing; · Collaborative innovation · Open-source; · Expensive products of competitors; ·Accepting different standards can bring economic expansion; · Increasing demand for Information Technology and Information System; · Headquarter in China. |
Threats · Changes in the global economy; · Increasing Competition; · Low-cost generic competition; · New competitors in the service market; · Dependency on Microsoft. |
Figure 1 shows the SWOT analysis of IBM, showing the current...