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Salesforce.com Inc (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.”

Salesforce.com Inc

Salesforce.com is engaged in providing application services which allow organizations to share customer information on demand. The company provides customer relationship management (CRM) service to businesses and delivers its service through a standard web browser. The company operates through subsidiaries primarily in the US, Europe, Japan and the Asia Pacific. It is headquartered in San Francisco, California and employs about 2,606 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Leader in On-Demand CRM
  • Strong customer base
  • Increasing research and development capabilities

Weaknesses

  • Geographic concentration

External

Opportunities

  • Alliance with Google
  • Growing On-demand CRM market
  • Acquisition of InStranet

Threats

  • Intense competition
  • Privacy concerns
  • Regulatory issues
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