IBM – SWOT Analysis Strengths Since IBM was founded in 1896, it has gone through a very long experience in the technological industry with a very strong brand name. The company has a wide range of products to appeal and attract different customer needs and to maintain its competitive position. IBM in 2009 was considered as one of the largest and most profitable computer services company in the world with a market capital of about $119 billion and 319,000 employees speeded in 150 countries around the world.
The company in 2009 has made a good cut of the cost structure while at the same time the company was achieving a good increase in the revenues. The company invested in the IT by outsourcing it completely to India just to compete more effectively in the IT services and to rebuild its competitive advantage. The company was concentrating a lot in the high value added business. Weaknesses In 2009 IBM announced 5,000 job cuts in the United States which was accounted for around 4% of the workforce in United Sates . This move could probably hurt the company’s external image.
Also could be one of the company’s weaknesses is that, the company was facing very high operating costs. The company also is not investing a lot in the low end products. Opportunities The company needs to maintain its position in the market and to attract more customers. Also IBM has the opportunity to lead the market in many segments by investing more in the R&D and to generate innovative ideas. Many customers perceive IBM as an old brand in which they have the opportunity to rebuild its brand image to appeal to the younger generation, could by investing in the electronic games or the mobile phones.
The company has a good opportunity to start design green products strategy that protects the environment and cut good percentage of the costs. IBM can develop a customized hardware & software for the key customers. Threats Probably one of the main threats that IBM is facing today, is the growing competitors that make a real threat for the company and those competitors who are able to create cheaper products and make more a considerable profit. The technological products are changing quickly and make the life cycle of these products much shorter. Also the economical fluctuations impose a real threat on the company of losing profits.