1. This external analysis also points to governmental action that improves data protection. The technological factors in the PESTLE Analysis of IBM are mentioned below: Being an IT company, it becomes crucial for IBM to be at the forefront in technological advancements and improvements. Copyright 2023. IBM Case Study. !-Keith GrencherBirmingham Business School. However, we may send you emails on our new reports and solutions. This helps both IBM and their clients to focus on their strong areas of business. The largest computer company in the world today is IBM, International Business Machines. Another economic factor that affects IBM is the cost of labor. are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. IBM company regulations are designed to protect the companys interests and include things like code of conduct, anti-corruption policies, and data privacy policies. These mainframes have become the industry's benchmark that competitors try to match. In 2021, the annual expenditure was $6.567 billion. 1. 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. You can use the following in your reference section in order to give credit to the source. The environmental environment can also affect IBMs operations. 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. In response, IBM has invested heavily in developing new cloud-based services and products. on WhatsApp for any queries. need to consider are given below. as they determine the overall economic environment of the country. This includes understanding the applicable laws and regulations in the markets in which it operates, as well as any changes that may occur over time.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[580,400],'howigotjob_com-banner-1','ezslot_7',195,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-banner-1-0'); Pestle analysis is conducted in IBM to identify and analyze external forces that may have an impact on their business. Let us know IBM PESTLE Analysis. For example, despite significant economic opportunities in Southeast Asia, countries in the region suffer from weak implementation and loopholes in intellectual property protection. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. Segmentation, Targeting and Positioning (STP) Analysis Report. The health and efficiency of financial markets will determine IBM.s ability to raise the capital at fair prices. 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. This threat comes in the form of potential cyber attacks on online infrastructure. ~ 0.0 Page). Additionally, IBM must be sensitive to cultural differences when marketing its products and services. MBA Skool InstallCourses Home Courses Concepts SWOT For example, new business solutions for online operations can address such demand and further grow IBMs business. 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. 5. Use of social media has become common in a modern business environment. On the other hand, cybercrime is another external factor that threatens the company. Academic writing has no room for errors and mistakes. For example, higher sales revenues are expectable, as target customers are increasingly capable of purchasing information technology products from the company. capture the technological trends to achieve certain business advantages, such as- increasing profitability, boosting innovation process and enhancing the operational efficiency. to study the current trends in the country's political scenario as changes in government may alter the government's priorities towards the development of different industries. PESTEL analysis of the macro-environment. identify the major external environmental forces that shape the strategy and competitive landscape and support its strategic decision making process. If you need help with something similar, should carefully analyze the protests by pressure groups, social/environment activists and worker unions as such protests play an important role in the policy making process. Sitemap. Issa, T., Chang, V., & Issa, T. (2010). Today, it has become quite dominant in the world of computers. A framework for PEST analysis based on fuzzy decision maps. Analyzing the company's challenges, strategies, and successes would provide reliable insights to business professionals and students to understand their business model. This report contains the table contents only. Changes in government policies or regulations can have a direct impact on the companys operations and profitability. The business practices of the IBM. The legal factors in the PESTEL Analysis of IBM are company regulations, employment laws, and intellectual property rights. (2018). Addressing the external factors increases IBMs rate of success in boosting the performance of its global business. Information Technology, Cognitive Solutions and Cloud Platform, Veeva Systems Inc. SWOT & PESTLE Analysis, Nuance Communications SWOT & PESTLE Analysis, Altair Engineering Inc. SWOT & PESTLE Analysis, LTI Mindtree Limited SWOT & PESTLE Analysis, Aerojet Rocketdyne SWOT & PESTLE Analysis, Algonquin Power & Utilities SWOT & PESTLE Analysis, The Vanguard Group SWOT & PESTLE Analysis, 1. The pace of technological change is also increasing, which can make it difficult for IBM to keep up. In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. A close eye should be kept on analyzing the 5G and determining its potential to deliver positive business outcomes through enhanced user experience, increased speed and expanded access. The observation of social class stratification is also important for IBM. must consider these factors to ensure compliance with consumer protection laws. This element of the PESTEL/PESTLE analysis shows that IBM has growth opportunities based on market penetration, customer service, and online services. Various legal factors that should be kept in mind are employee protection laws, consumer protection laws, intellectual property laws, etc. This report is shared in order to give you an idea of what the complete Ansoff Matrix Analysis Report will cover after purchase. Date, L. N. (2006). Some countries offer subsidies for encouraging investment in renewable technologies. should also attempt to understand the degree of consumer ethnocentrism and consider the country of origin effect to determine local consumers evaluation of foreign products. IBM is abbreviated as "Big Blue." It is a multinational consulting company and IT technology-based in Armonk, New York, USA. should develop local teams and develop local partnerships for understanding the societal attitudes and norms to tailor marketing strategies according to unique cultural context. Conducting PESTLE analysis about every six months can help businesses stay updated on current events, develop strategies and conduct market research. due to jeopardized public trust on business organizations and overall political and economic structure. International Journal of Business and Management, 7(24), 52. Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regnr, P. (2011). IBM has customers, partners, and suppliers in many different countries, and the companys operations can be affected by changes in foreign relations. Economic conditions may present opportunities and threats that affect IBM and the information technology industry. Hill, E. J., Jackson, A. and cannot be used for research or reference purposes. This report is shared in order to give you an idea of what the complete Porter's Five Forces Analysis Report will cover after purchase. 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. Research and development activities are highly important in an environment characterized by creative disruption. Quizzes test your expertise in business and Skill tests evaluate your management traits. of the box and hire Case48 with BIG enough reputation. Furthermore, IBM is subject to a range of intellectual property laws that protect its inventions and intellectual property rights. By analyzing the environmental environment, IBM can identify changes that could affect their business and plan accordingly. The organizational culture or corporate culture defines the philosophies, principles and values that influence the behaviors of employees. to make the value chain more flexible. Impact of Russia-Ukraine war on business: Russia initiated a special military operation against Ukraine in February 2022, which has created major chaos in Eastern European region. (Ed.). IBM PESTEL/PESTLE Analysis & Recommendations International Business Machines Corporation (IBM) employs organizational capabilities to continue growing the business, despite challenges based on the opportunities and threats in the information technology industry's remote or macro-environment, such as the ones outlined in this PESTEL/PESTLE analysis of the firm. A strategic framework for technology evaluation. First, the company has benefited from a strong global economy. IEEE. By scrutinizing the external environment, IBM can gain insights into how external forces may shape the future of the corporation and its operations. The high fluctuation on local currency can be a cause of serious concern for IBM. There are several environmental factors that have played a role in IBMs success as a multinational technology company. Another political factor that affects IBM is the trade agreements between countries. 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. Inability to protect intellectual property rights can result in losing competitive advantage, which may weaken the positioning of IBM. This report is shared in order to give you an idea of what the complete VRIO Analysis Report will cover after purchase. For instance, the company would not use the same advertising approach in China as it would in the United States. Conversely, failure to keep up with the latest technological trends can lead to reduced sales and profits. They helped me with my custom research and delivered before time! For example, recent economic downturns in Europe and China have negatively impacted IBMs financial results. IBM should analyze the labour demand and supply trends to understand how workers with the required skills set could be successfully recruited. The corruption can influence various business operations, ranging from licensing, contracting, fraudulent deals to frequent lawsuits. are influenced by the financial market efficiency as operating in highly efficient financial markets leads towards improved liquidity position and strengthened ability to enter new markets. IBM can target these market segments accordingly. IBM is also affected by currency exchange rates. Secondly, currency exchange rates are also a major consideration for the company. Intellectual property regulations are designed to protect the companies' patents and valuable ideas. And it can be divided into 4 pieces as follows: 1) Reallocating resources to enhance their server product business and reduce operation costs and optimize the efficiency. Data Masking Technologies Software Market Application Outlook Chapter 6. If you continue to use this site we will assume that you are happy with it. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. While the operations in Ukraine offices have been impacted, the companys operations IBM has also ceased their operations in Russia due to the start of military operation in Ukraine. A PESTEL/PESTLE analysis of IBM reflects strategic opportunities for expansion and competitiveness based on external factors in the remote or macro-environment of the information technology industry. Customized Solutions Developing strategic business models and competitive advantage in the digital sector. IBM. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. Growth opportunities in government business segment, 1. Pearson Education. Moreover, considering the development and maturity level of technology in the respective market is also important. The main strategy of IBM is to delivers their high value added services (or software) to customers through their server product. This opportunity exists even though such regulations threaten the business in terms of greater pressure and potential restrictions based on ecological concerns. The company has been struggling to keep up with the ever-changing technology landscape, and its stock price has stagnated. International Business Machines Corporation (IBM) aligns its organizational culture with business goals for leadership in the information technology industry. Frequent changes in government policies harm business performance by increasing environmental uncertainty. 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. Loss of confidence expressed by major shareholder: IBM showed stagnant growth over the last few years registering more than 20 straight quarters without revenue growth as of 2017. IBM, or International Business Machines, is an American multinational technology company. 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. For different referencing styles and detailed guidelines, please click here. Service, Dissertation IBM places various ethical principles while developing AI to build systems based on trust. Apr 17, 2023 (Heraldkeepers) -- The Market Research report 2023-2030 is an in-depth analysis of the Global Medical Imaging AI Platform Market. 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