Economics and Swot Analysis Essay

sooner we start with the swot analysis of IBM lets understand what actu onlyy the SWOT is . The full form of SWOT is military group ,weakness opportunity and threat . so the basic meaning of swot analysis of any company is to nurse this four factors of any company at certain given period of time . On the other(a) hand the full form of PEST is Political, stinting, 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 Company by Herman Hollerith, in Broome County, immature York it is very lots old and organization of high repute . 2. the leading IT Manufacturer and service supplier . the 4th gravidst technology company and 2nd most valuable global brand . And they are 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 almost cc places in this world. 4. Its val ue almost $70 billion. They have over 450,000 employees worldwide. 5. The first company who decide to pee-pee 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 dependent on corporate clients the nature of them is changing day by day . 4. They have vary much gloomy share in pc market which is a growing segment right nowOpportunities 1. increase globalization is an important opportunity that can be exploited by IBM in order to eternal sleep the fluctuations in different economies. 2. IBMs small-medium business (SMB) has improved over the years but there is in spades a need to increase its market share to have an overall competitive edge. 3. IBM needs to swan a competitive edge in the marketplace and innovation is key and working with IT-related companies to piddle parvenu products in the ever changing market use patents to generate revenue.Threat 1. The fact that they are exclusively dependent on Microsoft (in their computer services division) could be a huge problem if anything ever happened to them. 2. Hackers and dainty information can be exposed and exploited by individuals and IBM needs to be innovative with regards to firewalls and contraceptive software. 3. The supply chain has very few suppliers, leaving IBM very little to negotiate with or budge to HP, Sun Microsystems are all competitors and are all threats to IBMs bottom line. Their competitors are able to create cheaper products and agnise 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 direction more on larger companies with big budgetsPEST ANALYSISPolitical factorsThe heavy taxes in the UK make the IBM server products increase the weakness o n the price factor, especially on the premium price IBM products.Economic factorsThe healthy economic environment with strong and stable GDP in the all regions provides a level-headed market for the product and service business of IBM. Although the GDP increase rate is not fast, the stability could respite this disadvantage element. The service industry in the world contributed nearly 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 high 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 swell known about the internet indicated the opportunities of relevant products and servicesTechnological factors earnings, A survey from CIA, (2007) shows that there were 6,064, 860 Internet hosts in 2006, and more than 400 Internet Service Providers in 2000. In this sophisticated market, the opportunity and argument will exist together.