For example, the products of other industries, such as the automotive industry, are becoming increasingly dependent on computing technologies. These factors come from the natural environment and affect certain industry like farming, agriculture. Moreover, the increasing use of online services is marked as an opportunity in this external analysis.
In this external analysis case, IBM must strategically address the following sociocultural external factors: In this element of the SWOT analysis of IBM, threats are a major concern that could bring down the business and its technological infrastructure.
These factors are weaknesses that the company must overcome through strategic initiatives or reforms in business operations and processes. These factors are strengths that continue to support the company in its more than years of business operations in the global information technology industry.
This internal factor empowers the company to successfully attract and retain customers for current and new products.
Enter alliances with firms from other industries to exploit technological integration opportunities. All these factors determine the direction in which an economy might move and organizations study these factors based on their environment and develop strategies based on the identified changes that are about to occur.
This often involves buying hardware, software and services from IBM at the same time, which is very costly expenditure for any size of enterprise. Develop and implement a diversification strategy to exploit the technological integration in various industries and markets.
For example, the company has opportunities to develop products to satisfy demand for digitization in governments and related organizations, and to satisfy market demand for online services.
On the other hand, the rapid growth of developing markets is an external factor that corresponds to growth opportunities for information technology firms, especially through the market penetration strategy Read: These new entrants have interests in diversifying their businesses and impose a moderate threat against the company Read: 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.
Reform innovation processes to raise product uniqueness and improve the advantage of products against imitation and competition.
Studies are performed to investigate about how consumers are reacting to technological trends and are used for their benefits.
IBM executives are responsible for the safety and environmental performance of their organizations. Also, the company has the opportunity to develop and offer advanced cyber-security products to its clientele. In this regard, IBM must address the following legal external factors relevant in the information technology industry: For instance, IBM has the opportunity to enhance its protective measures against cyber attacks.
You can share your queries and feedback on our discussion Forum. 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.
For example, governments are increasingly facilitating the implementation of intrusion detection systems, thereby presenting opportunities for the company in providing technological tools for such implementation.
Cloud computing market is new and lucrative market that has a lot of growth potential.
The checklists cover both manufacturing and hardware development locations and nonmanufacturing locations at a geographic level, product groups and service activities. Housing Industry Association Also, this strength can support the company in diversifying its business and entering other industries.
The aim should be to maximize stability and growth while protecting the business from threats in the remote or macro-environment. These factors are opportunities linked to changes in the information technology industry and related markets, such as the transformation of the dominant technological strategies used in the market.
This is a comprehensive audit program which is independent of the Corporate Environmental Affairs staff. Great Depression in India is a good example of political factors. However, the strategy is applied with minimal emphasis on product uniqueness. Establish a cooperative movement with governments and other organizations to improve intellectual property protections.
This shift will result in lower impact of the negative trends in hardware market and higher profitability from sales of software and services.Essay External and Internal Environment Analysis External and Internal Environmental Analysis This environmental analysis will provide a complete external environmental scan designed to provide RoyalBlu Invites with the tools needed to identify the organizations strength and weaknesses.
External Analysis of Nestle: Nestle in the Global Environment: Nestle operates in over countries and in order to understand the business environment they operate in analysis on the external factors that lie outside the control of Nestle has to be conducted (Grant et al.).
International Business Machines Corporation (IBM) engages in continuous efforts to address concerns shown in this SWOT analysis of the business.
The SWOT Analysis is a strategic tool to identify the strengths, weaknesses, opportunities and threats most significant and relevant to the business.
Internal Analysis 1 Why does firm performance differ? Internal Analysis Earlier we explained differences in firm performance as being a function of their external environment. However, this is only part of the story. Obviously, each firm has some unique e.g. IBM & personal computers.
Read this essay on Ibm Internal and External Environment. Come browse our large digital warehouse of free sample essays. Get the knowledge you need in order to pass your classes and more. Only at agronumericus.com". Business Environment Of IBM Information Technology Essay. Print Reference this.
Macro Environment factors are the external factors which affect the company as a whole. Macro Environmental analysis can be done by PESTLE Analysis. This report has analyzed the strategies of IBM through various factors and analysis and IBM has almost.Download