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International Business Machines (IBM) (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

International Business Machines (IBM) 

International Business Machines Corporation (IBM) is an information technology company providing business technology and consulting services. The company offers a range of services and technologies, which include hardware, software, financing, research and chip technologies. The company is a leading provider of IT services in the industry. A leading position in the market enhances the company’s brand image and competitive position. Intense competition, however, adversely affects the company’s market share, revenues and margins.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Leading provider of IT services
  • Strong research and development capabilities
  • Strong profitability

Weaknesses

  • Weak enterprise mobility product portfolio

External

Opportunities

  • Expansion in emerging markets
  • Growing information on demand tools market
  • Strategic acquisitions

Threats

  • Intense competition
  • Economic Slowdown in US and Europe
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