There is a growing trend towards the use of green/eco-friendly products. The organization, with its long history going back to the nineteenth century, is one of the few Information Techniques. To conclude, the above IBM PESTLE Analysis highlights the various elements which impact its business performance. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. Each society has distinctive norms and values that play an important role in shaping consumer behavior. Compliance with these regulations can be costly but is necessary for IBM to remain competitive in the global market. A detailed analysis of the technological environment can help IBM. as they determine the overall economic environment of the country. against other market players. The organization may also study the industry specific taxation policies to understand the host government's priorities and interest in developing industries. Twenty years of work and family at International Business Machines Corporation. This section covers many brands and companies. It helps to identify its political, economic, social, technological, legal, and environmental factors. IBMs free digital education platform, Open P-Tech is designed to engage students and educators in times of remote learning. It was initially a punch card tabulating machine producer in 1911. IBM SWOT & PESTLE Analysis - SWOT & PESTLE.com. The first factor to consider is the rise of cloud computing. The company also has to pay taxes according to the laws of the country they are operating in(Mugwe, 2014). Understanding the demographic trends, power structures, consumers spending patterns and shared beliefs can help IBM. Legal systems affect the company and its remote or macro-environment through regulations. Studying the demographic characteristics can help IBM. Help, Academic This threat comes in the form of potential cyber attacks on online infrastructure. The consumers spending patterns are influenced by their purchasing power of money. [online] Available at: https://www.swotandpestle.com/ibm/ [Accessed 18 Apr, 2023]. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. This element of the PESTEL/PESTLE analysis shows social trends and changes that affect how customers and employees interact with the information technology business and its products. Charles Ranlett Flint was the founder of IBM, and he laid the foundation of the company on June 16, 1911. Today, it has become quite dominant in the world of computers. IBMs business strategy is designed to support two major goals - helping clients to move to the digital era by bringing together innovative technology and industry expertise, and providing long-term value to shareholders. BIM Implementation: PESTEL Drivers & Barriers (Cross-national Analysis). By analyzing the technological environment, IBM can identify changes that could affect their business and plan accordingly. can increase the market share by focusing on emerging technological innovations. Browse analysis of more brands and companies similar to IBM PESTLE Analysis. Nivea SWOT Analysis: Why is the Skincare Brand so Successful? The marketing department of IBM. However, we may send you emails on our new reports and solutions. The high interest rate will encourage the attitude towards investment and increase growth opportunities for IBM. On the other hand, cybercrime is another external factor that threatens the company. The following is a PESTEL analysis of IBM: Political Factors Primarily it was a hardware, middleware and software manufacturer but presently it offers services and solutions in cloud computing, hosting, cognitive technologies, data and analytics, security and mobile solutions. Accordingly, we never encourage or endorse its direct The social factors that have an impact on IBM include demographics, culture, values, and attitudes. IBM. For instance, IBM has the opportunity to enhance its protective measures against cyber attacks. IBM counts Berkshire Hathaway headed by Warren Buffet as one of its premier shareholders held an 8.5% stake in IBM as of 2016. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Impact of Russia-Ukraine war on business, 1. Technological: IBM operates in a highly technology-driven industry, and must remain at the forefront of technological advances. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. IBM is also affected by currency exchange rates. The global economic environment is also a significant social factor that impacts IBM(Hill et al., 2006). The government plays an important role in regulating the technology industry, and IBM must comply with a wide range of laws and regulations. Shifts in consumer spending, interest rates, exchange rates, and other economic indicators can affect the companys ability to access capital and labor, as well as its ability to compete in the global market. By analyzing the environmental environment, IBM can identify changes that could affect their business and plan accordingly. In. Changes in government policies or regulations can have a direct impact on the companys operations and profitability. Which tech firms will lose out the most in the China-US trade war? Exploring strategy. Addressing the external factors increases IBMs rate of success in boosting the performance of its global business. Digital Marketing and Social Media Strategy Analysis Report. This report is shared in order to give you an idea of what the complete BCG Analysis Report will cover after purchase. Aug-22-2018. to make informed decisions: The economic development of a country directly influences organizational performance. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. ~ 0.0 Page). Their move to the cloud has allowed them to offer their customers more efficient and cost-effective solutions for their data storage and computing needs. It requires IBM. These laws can dictate things like minimum wage, hours of work, and health and safety standards. T. hirdly, interest rates are another key economic factor impacting IBM. IBM operates in a dynamic environment where it is influenced by - consumer . IBM. IBM SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting. Secondly, currency exchange rates are also a major consideration for the company. The social environment can have a major impact on IBMs operations as well. Establish a cooperative movement with governments and other organizations to improve intellectual property protections. to understand economic factors such as foreign exchange/interest rate, labor market conditions, inflation and saving rates etc. Moreover, the company has to follow the rules and regulations set by the government. This section is available only in the 'Complete Report' on purchase. should invest in disruptive technologies to maximize the profits and re-invest the profits for future disruptive technologies. International business. Subsidiaries, Partnerships and Collaborations Report. Following economic factors need to be considered by IBM. Develop and implement advanced cyber security solutions for the organization and for target customers. The political environment of a country comprises multifaceted factors. Group, 73600, V09042019. in choosing the right market segment/segments with high growth potential. IBM must account for the following economic external factors in its remote or macro-environment: Stable economic growth in major markets creates opportunities for firms like IBM to continue developing their operations with minimal issues regarding undesirable economic trends in these markets. Leveraging technology for environmental protection, Extends the strategy and design expertise of IBM iX, Strengthened the IBM Connections portfolio and Launched new offering - IBM Connections Engagement Center, Strengthens IBM's Securitys portfolio by adding C-Suite decision making solution, Expand disaster recovery services for Hybrid cloud, Risk management and regulatory compliance, Transform regulatory compliance with Watson, Help developers modernize mainframe applications for digital business, IBM Segmentation, Targeting and Positioning (STP) Analysis. by Haseeb | Jan 29, 2017 . First, the company has benefited from a strong global economy. With Buffets faith shaken in the company, IBM is likely to face further scrutiny over its performance in the coming quarters. IBM has been a leader in the development and implementation of blockchain technology, which has allowed them to create secure and reliable platforms for data sharing and transactions. International Business Machines Corporation popularly known as IBM is an information technology multinational company, incepted in the year 1911 and is headquartered in Armonk, New York, US. A strategic framework for technology evaluation. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. o Economies of developing nations were growing . We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. 3. The economic environment can also have a significant impact on IBMs operations. estimate the growth trajectory of industry and organization. These mainframes have become the industry's benchmark that competitors try to match. The PESTEL (Political, Economic, Social, Technological, Environmental and Legal) Analysis of IBM (International Business Machines Corporation) highlights the company's key opportunities and maximum potential for growth in the global market. IBM SWOT and PESTEL 1. In 2021, the annual expenditure was $6.567 billion. If you have BIG dreams to score BIG, think out This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. For example, higher sales revenues are expectable, as target customers are increasingly capable of purchasing information technology products from the company. Today, new products are developed quickly, and supply chain partners have also gained more power. This includes understanding the cultural and demographic differences between markets and being able to adjust its products and services to meet the changing needs of its customers. All Rights Reserved by Barakaat Consulting. SWOT & PESTLE.com (2023). Providing a secure work environment for the workforce is the ethical and moral obligation of IBM. Consumer Preferences and Tastes: IBM is heavily dependent on consumer preferences and tastes, as consumer demand and tastes drive the companys product development and innovation efforts. A PEST analysis incorporating legal and environmental factors is called a PESTLE analysis . is also influenced by the extent to which the host country government has spent on core infrastructure development. Copyright 2023. For instance, IBM can cooperate with the governments of developing countries to address intellectual property concerns while boosting the companys brand recognition and popularity in these markets. IBM's core strength lies in its System/360 and System/370 mainframe series. Help, Academic Required fields are marked *. The rapid technological advancement and technological diffusion across the globe have increased the importance of understanding technological factors during the strategic decision making process. Technological trends can be used to start the creative social media campaigns for developing online brand communities. Regulatory bodies emphasis on ensuring compliance with environmental norms is altering the product innovation priorities. IBM has a dedicated trust center that focuses on protecting their customers and business with privacy and security. This opportunity exists even though such regulations threaten the business in terms of greater pressure and potential restrictions based on ecological concerns. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. In addition, the external factor of expanding e-waste regulation presents an opportunity for IBM to improve its environmental impact. need to study data protection regulations to protect the customer data. This can be done through a PESTEL analysis. IBM is facing serious competition from other major players in the market such as Amazon, Microsoft and Google and that has led to investors doubting its capability to protect its market. Similarly, anti-discrimination laws (like equal employment opportunity) also need to be carefully studied when developing human resource practices as discriminatory suits against employer harm the organizational image and affect organizations ability to attract and retain the talent. Proposal, Assignment Writing IBM. IBM PESTLE Analysis assesses the brand on its business tactics across various parameters. This has had a negative effect on IBMs sales and profitability. Some countries offer subsidies for encouraging investment in renewable technologies. must adjust its business management practices while entering in markets with high or low power distance. Legal: IBM is subject to a variety of laws and regulations that may affect its operations. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. Mugwe, C. W. (2014). 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. Dissertation American Behavioral Scientist, 49(9), 1165-1183. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. This is reflected in their commitment to achieving net-zero emissions of harmful gases by 2030 and to cut carbon emissions by enacting a carbon tax. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. Thus, in this element of the PESTEL/PESTLE analysis, considerable opportunities and threats affect IBMs standing in the global market. They helped me with my custom research and delivered before time! High unemployment signals the availability of surplus labor at comparatively lower wages. Andr Cavalcante, S. (2013). The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. IGI Global. IBM. PESTLE analysis is also referred to as PESTEL analysis. Another economic factor that affects IBM is the cost of labor. Factors such as inflation, exchange rates, and economic growth can have a major impact on IBMs operations. should consider the following legal factors when exploring a new market. PESTEL analysis of the macro-environment. It uses the SWOT and PESTEL analysis to assess the external environment. can leverage the opportunities offered by social media marketing to improve business performance. This report is shared in order to give you an idea of what the complete VRIO Analysis Report will cover after purchase. PlayStation SWOT Analysis: How Sony Beat Its Rivals at Their Own Game, OpenAI PESTLE Analysis: Studying ChatGPTs Big Innovator, Levis SWOT Analysis: Strong Brand Loyalty for the Blue Jeans Company, Hershey SWOT Analysis: A Bittersweet Future in the Face of Healthy Living, How Much Does It Cost To Open A Barbershop In 2023. Please refer to the Terms and Conditions and Disclaimer for usage guidelines. IBM. Roper, K. (2012, November). IBM SWOT & PESTLE Analysis - SWOT & PESTLE.COM. In IBMs case, the following political external factors are significant: Governments move for digitization is an external factor that creates opportunity for IBM to offer information technology products that address this need in governmental organizations. The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. This report is shared in order to give you an idea of what the complete Subsidiaries, Partnerships and Collaborations Report will cover after purchase. Environmental, Social, and Governance (ESG) Analysis Report. Holistic Analysis Operating in countries with high corruption level and weak law enforcement makes the business environment increasingly unpredictable for IBM. However, when there is political chaos, it deters the investors and harms the stakeholders' trust in economic and consequent organizational performance. PESTEL Analysis is a strategic management tool that IBM leadership can use to make better decisions. Over the next five to ten years, the worldwide quantum computing business is expected to expand from hundreds of millions of dollars to billions. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. Determinants for effective information technology outsourcing: a case of international business machines corporation Kenya (Doctoral dissertation). Thank you for your email subscription. IBM holds a large number of patents, trademarks, and copyrights, and must ensure that these are protected from unauthorized use or infringement. Your email address will not be published. As a multinational company, IBM is subject to the laws and regulations of the countries in which it operates. Moreover, the increasing use of online services is marked as an opportunity in this external analysis. This can create compliance risks and costs for the company. As one of the most well-known global corporations, IBM faces the challenge of managing its operations in the face of a highly dynamic and competitive business environment. However, considerable threats are also determined in this external analysis of IBMs information technology business. In order to stay ahead of the curve, the company needs to continually invest in research and development (R&D). Financial Times Prentice Hall. IBM. This trend is a threat because it attracts new entrants from other industries. Various legal factors that should be kept in mind are employee protection laws, consumer protection laws, intellectual property laws, etc. IBM. 2. The PESTEL/PESTLE analysis is a strategic management instrument that identifies the most significant political, economic, sociocultural, technological, ecological and legal (PESTEL/PESTLE) external factors relevant to the company. The external analysis also identifies opportunities to diversify IBMs business based on the external factor of technological integration in industries and markets. 27.3.1 Political Factors. European Journal of Innovation Management, 16(3), 285-300. IBM. IBM constantly spends money in the research sector, and the number speaks for itself. Excessive resource depletion by IBM. Leyva, M., Hechavarria, J., Batista, N., Alarcon, J. The power distance within any society shows the acceptance of hierarchy and income inequality. Following are the legal factors in the IBM PESTLE Analysis: IBM cannot enter a new market without first thoroughly researching its legal environment and regulatory framework. This report is shared in order to give you an idea of what the complete Environmental, Social, and Governance (ESG) Analysis Report will cover after purchase. These regulations can have a direct impact on IBMs operations, such as the privacy and data protection laws that govern how the company handles customer data. IBM SWOT Analysis Weaknesses To gain an understanding of the external forces that may affect IBMs operations, a PESTLE analysis of the company may be conducted.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[728,90],'howigotjob_com-medrectangle-3','ezslot_6',191,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-medrectangle-3-0'); Political: IBM operates in a highly regulated industry with governments around the world playing a major role in the technology sector. Shifts in consumer opinions, tastes, and preferences can affect the companys ability to market its products and services. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals, at such affordable pricing. IBM is working on several initiatives related to hybrid cloud solutions, AI, blockchain, and quantum computing. For different referencing styles and detailed guidelines, please click here. Increase in adoption of e-commerce by consumers, 1. correct email will be accepted, (Approximately The organizational culture or corporate culture defines the philosophies, principles and values that influence the behaviors of employees. The detailed complete set of references are available on request in the 'Complete report' on purchase. The main purpose of PESTLE analysis is to identifying issues that fit with two key criteria: * They are outside the control of your company. looks to expand and leverage its competencies and core capabilities, conducting the PESTEL analysis is imperative for developing effective strategies and achieving long-term growth objectives. The PESTEL/PESTLE analysis is a strategic management instrument that identifies the most significant political, economic, sociocultural, technological, ecological and legal (PESTEL/PESTLE) external factors relevant to the company. 1. Gillespie, A. As IBM. The remaining section under "Weakness" is available only in the 'Complete Report' on purchase. Are you looking for a report which is not covered on our website? A careful review of legal risks is necessary to avoid getting into significant legal trouble. This report is shared in order to give you an idea of what the complete Regulatory Outlook Report will cover after purchase. [ Accessed 18 Apr, 2023 ] has spent on core infrastructure.... So Successful are influenced by the government availability of surplus labor at comparatively lower wages holistic analysis operating countries. 2014 ) help, Academic this threat comes in the industry specific taxation policies understand... 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For usage guidelines consumers spending patterns and shared beliefs can help IBM taxes according the! Macro-Environment through regulations factors increases IBMs rate of success in a political context, the annual was. And expand the customer base due to enhanced brand image are operating in countries with high growth potential opportunity. By IBM developing online brand communities the number speaks for itself a strategic management tool that leadership! Idea of what the complete BCG analysis Report IBM to remain competitive in coming.