The PESTEL (Political, Economic, Social, Technological, Environmental and Legal) Analysis of IBM (International Business Machines Corporation) highlights the companys key opportunities and maximum potential for growth in the global market. This can be costly, but is essential if IBM wants to maintain its position as a leading technology company. This section is available only in the 'Complete Report' on purchase. Technological: IBM operates in a highly technology-driven industry, and must remain at the forefront of technological advances. This investment will also increase stakeholder satisfaction and expand the customer base due to enhanced brand image. The technological environment can also have a major impact on IBMs operations. PESTLE Analysis of IBM In order to analyze the business approach of a company, PESTLE is a great tool. The Summary report contains the SWOT & PESTLE table contents only. It is important for IBM. T. hirdly, interest rates are another key economic factor impacting IBM. Inability to protect intellectual property rights can result in losing competitive advantage, which may weaken the positioning of IBM. IBM PESTEL/PESTLE Analysis & Recommendations IBM's office building in Bratislava, Slovakia. Furthermore, IBM is subject to a range of intellectual property laws that protect its inventions and intellectual property rights. For example, higher sales revenues are expectable, as target customers are increasingly capable of purchasing information technology products from the company. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Springer Berlin Heidelberg. Integrity, Essay Writing By assessing the legal environment, IBM can identify potential risks and opportunities and develop plans to address them. Data Masking Technologies Software Market Application Outlook Chapter 6. should carefully consider the on-going technological innovations to stay ahead of the competition. The external analysis also identifies opportunities to diversify IBMs business based on the external factor of technological integration in industries and markets. Studying and forecasting the consumers purchasing power based on relevant economic indicators is important to analyze the customers interests and spending patterns. IBM. to understand economic factors such as foreign exchange/interest rate, labor market conditions, inflation and saving rates etc. Yksel, I. 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. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. 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. must adjust its business management practices while entering in markets with high or low power distance. Another political factor that affects IBM is the trade agreements between countries. International business. Proposal, Question By analyzing the technological environment, IBM can identify changes that could affect their business and plan accordingly. A., & Gomez, o. To conclude, the above IBM PESTLE Analysis highlights the various elements which impact its business performance. IBM can target these market segments accordingly. The economic factors affecting IBM are numerous. The growing use of mobile phones and social networking sites must be considered when developing marketing and communication strategies. Government Regulations: Government regulations can have a major impact on IBMs operations. Hence, IBM. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to IBM. It provides services to more than 175 countries worldwide and has close to 400,000 employees globally as of early 2023. 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. However, IBM's annual revenue has remained flat, and the company's Watson software system has yet to deliver the anticipated rebound. IBM believes their greatest asset to be their employees and puts strong efforts into diversifying the workforce and it also encourages creativity outside work. In 2020, IBM had the most patents granted to it in the United States. 1. Help, Academic In case you need the complete report please purchase using the buy options displayed. Key Performance Indicators (KPI's) Report. If there are any changes in these agreements, it could impact IBMs business operations. As a multinational company, IBM is subject to the laws and regulations of the countries in which it operates. 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. Technology' is the fourth factor of PESTEL analysis. Economic conditions may present opportunities and threats that affect IBM and the information technology industry. Concerns over confidential information of users being vulnerable to leaks 3. IBM SWOT Analysis Weaknesses Aside from these external factors, the remote or macro-environment presents the opportunity to grow the companys revenues in providing cloud platform 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. The business and marketing strategies are also influenced by migration. 4. 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. IBM. Still, the same external factor in the context of developing markets is considered an opportunity in this external analysis. By assessing the social environment, IBM can identify potential risks and opportunities and develop plans to address them. Help, Academic This element of the PESTEL/PESTLE analysis shows that political changes and trends present opportunities for IBMs business. This external analysis also points to governmental action that improves data protection. to get Coupon Code. Political instability in these and other countries can also impact IBMs business, as can trade disputes and tariffs. This report is shared in order to give you an idea of what the complete Segmentation, Targeting and Positioning (STP) Analysis Report will cover after purchase. Hill, E. J., Jackson, A. The demand and supply of labor determine the wage rates and supply of skilled workforce. Copyright 2023. To assist scientists around the world with research related to COVID-19 IBM provided free access to supercomputing capacity. UCF Research Guides. 1. IBM. The business organization is an international organization based in Armonk. The observation of social class stratification is also important for IBM. Technological. IEEE. Dissertation Technological factors are an important part of the PESTEL analysis of IBM. It started under the name of "Computing-Tabulating-Recording-Company" and later it became IBM. By conducting this analysis, IBM can identify potential risks and opportunities and develop plans to address them. These actions can contribute to the effectiveness and success of the programs and initiatives in IBMs corporate social responsibility strategy. The following is a PESTEL analysis of IBM: Political Factors IBM. The company operates in over 170 countries and is affected by economic conditions in each of these markets. For example, the companys remote or macro-environment is subject to the availability of resources from the natural environment. International Journal of Business and Management, 7(24), 52. Organizational culture derives strong influence from the societal norms, values and trends. !-Keith GrencherBirmingham Business School. Paying careful attention to PESTLE factors can also enable businesses to improve their products and services to meet customers' needs. 27.2 Market Development Constraints. Moreover, a well-developed governance system with a democratic political environment makes the business environment more comfortable for international business organizations like IBM. As a technology company, IBM is heavily reliant on the latest technological advancements to maintain its competitive advantage. Over the years . This report contains the table contents only. 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 industrys remote or macro-environment, such as the ones outlined in this PESTEL/PESTLE analysis of the firm. Finally, the exchange rate fluctuation can also influence the profitability and international trade. The impact of economic trends and related variables on the company are assessed in this element of the PESTEL/PESTLE analysis. Therefore, improving processes for legal compliance and cooperation with other organizations can address the threats and opportunities in this element of the PESTEL/PESTLE analysis. can draw the negative response from media, environment protection groups, customers and the general public. IBM. A PESTLE Analysis is a useful tool for understanding the macro-environmental factors which could have an impact on a corporation. should develop local teams and develop local partnerships for understanding the societal attitudes and norms to tailor marketing strategies according to unique cultural context. Keep it up! Conducting PESTLE analysis about every six months can help businesses stay updated on current events, develop strategies and conduct market research. can leverage the opportunities offered by social media marketing to improve business performance. AI has been widely embraced by IBM as a vehicle for automating processes and improving decision-making.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[728,90],'howigotjob_com-mobile-leaderboard-1','ezslot_20',603,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-mobile-leaderboard-1-0'); Finally, the emergence of blockchain technology has had a significant impact on IBMs operations. The company is also affected by US government policy decisions, such as those related to taxation, immigration, data privacy, and intellectual property. By analyzing the environmental environment, IBM can identify changes that could affect their business and plan accordingly. Changes in weather and climatic conditions can influence business efficiency. on WhatsApp for any queries. (2009). IBM is an information technology company involved in the manufacture and distribution of hardware and software around the world. Please refer to the Terms and Conditions and Disclaimer for usage guidelines. 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. In addition, the external factor of expanding e-waste regulation presents an opportunity for IBM to improve its environmental impact. to make informed decisions: The economic development of a country directly influences organizational performance. The growing environmental pollution coupled with technological advancement has compelled business organizations to adopt innovative recycling and waste management practices. IBM. The product element in IBMs marketing mix or 4Ps should change accordingly. Changes in government policies or regulations can have a direct impact on the companys operations and profitability. Moreover, considering the development and maturity level of technology in the respective market is also important. A careful review of legal risks is necessary to avoid getting into significant legal trouble. 2. 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. Entering in countries with high taxation level will directly influence the profitability of IBM. This element of the PESTEL/PESTLE analysis deals with the effects of governments and political organizations on the remote or macro-environment of the information technology industry. These laws are designed to ensure that companies do not abuse their market power or engage in corrupt activities. SWOT & PESTLE.com (2023). Nonetheless, cybercrime is also marked as an opportunity in this external analysis. needs to consider the investments made by competitors on a micro and macro level to understand how new technologies influence the firms value chain and prevailing cost structure. The political environment can influence IBM in many ways. Technology integration initiatives across industries, 1. The company must tailor its products and services to meet the needs of the various markets it operates in. Similarly, market segmentation based on social class may be ineffective where social class stratification is low. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. What are some opportunities that IBM can benefit from? Segmentation, Targeting and Positioning (STP) Analysis Report. Your email address will not be published. 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. If you have BIG dreams to score BIG, think out The government plays an important role in regulating the technology industry, and IBM must comply with a wide range of laws and regulations. In order to turn things around, IBM needs to take a close look at the macro environmental factors affecting its business. This external analysis also shows that the company can grow its business through products that specifically target online demand and online markets. Quizzes test your expertise in business and Skill tests evaluate your management traits. IBM subsidiary Red Hat has discontinued sales, services and partner relationships for organizations located or headquartered in Russia and Belarus. IBM. Technologies and related changes determine the business tools and equipment available in the information technology industry. The consumers spending patterns are influenced by their purchasing power of money. Changes in governments and policies should be kept in mind while implementing and executing plans in different countries. Culture is considered an important variable by international marketing managers. It requires IBM. It has been reviewed & published by the MBA Skool Team. : https://techwireasia.com/2020/09/which-tech-firms-will-lose-out-the-most-in-the-china-us-trade-war/
Some examples of environmental factors that IBM. This report is shared in order to give you an idea of what the complete Key Performance Indicators (KPI's) Report will cover after purchase. Related: Macroeconomic Factors: How They Impact the Economy It was initially a punch card tabulating machine producer in 1911. The advent of social media and e-commerce has encouraged online shopping behavior among customers. For instance, the company would not use the same advertising approach in China as it would in the United States. design effective marketing messages and fulfil corporate objectives through informed PESTEL analysis. Below are the economic factors in the PESTLE Analysis of IBM: IBM must comprehend economic elements such as foreign exchange/interest rates, labor market conditions, inflation, and saving rates, among others, because they influence the country's overall economic climate. 27 Market Dynamic Analysis and Development Suggestions. In 2020, IBM announced its plan to start a new company NewCo which will look into its Managed Infrastructure Services business as a publicly-traded company. Pearson Education. International Business Machines Corporation (IBM) aligns its organizational culture with business goals for leadership in the information technology industry. Many countries have placed strict norms to protect their urban areas through effective waste management. Sustainable business strategies and PESTEL framework. Loss of confidence expressed by major shareholder, 1. IBM must remain in compliance with the regulations set by governments and international organizations such as the European Union. The corruption can influence various business operations, ranging from licensing, contracting, fraudulent deals to frequent lawsuits. Based on. PESTEL Analysis Chater 4. IBM is a global corporation, and the external forces that they need to be aware of can range from political, economic, social, technological, legal, and environmental factors. The business practices of the IBM. The organization, with its long history going back to the nineteenth century, is one of the few Information Techniques. For different referencing styles and detailed guidelines, please click here. In 2020, IBM spent around $6.5 billion in the R&D sector. Determinants for effective information technology outsourcing: a case of international business machines corporation Kenya (Doctoral dissertation). are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. Warning! Intellectual property rights are important for IBM because they produce a lot of innovative products and services. This report is shared in order to give you an idea of what the complete VRIO Analysis Report will cover after purchase. must follow the employee/labor health and safety laws as some countries have strict regulations to ensure labor safety. IBM constantly spends money in the research sector, and the number speaks for itself. Understanding the impact of technology on firms business models. In order to counter this trend, IBM has focused on developing more cost-effective solutions that provide value for its customers. All Rights Reserved by Barakaat Consulting. This paper looks at the internal and external factors that impact on the organization. The following technological external factors affect IBMs business capabilities: IBM faces the external factor of technological integration in various industries and markets. academic writing services at least once in their lifetime! 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. Entering in mature industries can be more challenging due to market saturation than industries at the growth stage. Designed by Elegant Themes | Powered by WordPress, Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Tumblr (Opens in new window). IBM PESTLE Analysis assesses the brand on its business tactics across various parameters. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. 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. High taxation affects international trade and prevents exports. IBM. Moreover IBM's high-priced lease strategy supported by excellent customer support enhances the company's fortunes. BIM Implementation: PESTEL Drivers & Barriers (Cross-national Analysis). Hou, J., Lu, Q., & Han, Y. In case you want this report emailed straight into your email inbox, kindly share your details below. * By clicking on "Buy Now" you agree to accept our ", On purchase the IBM SWOT & PESTLE Analysis PDF report will reach you. These efforts also address the opportunity to satisfy the external factor of the rising interest for business sustainability programs. Changes and trends software around the world political instability in these and other countries can also influence the consumers power! The PESTLE analysis of IBM changes can also impact IBMs business related variables the! Advent of social media marketing to improve their products and services to meet customers & # x27 ; high-priced. 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