ibm pestle analysis
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. In 2020, IBM had the most patents granted to it in the United States. 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. To assist scientists around the world with research related to COVID-19 IBM provided free access to supercomputing capacity. However, despite such trend of improving protections, the company still faces issues in developing markets. Another platform, SkillsBuild, is designed to provide reskilling support for job seekers. must consider the following social factors to conduct macro-environmental analysis: Changes in demographic patterns like aging population, migration trends and socio-economic variables have paramount importance for international business organizations like IBM. Legal systems affect the company and its remote or macro-environment through regulations. 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. In a political context, the key to success in a dynamic international business environment is to diversify the systematic risks. Help, Academic 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. IBM counts Berkshire Hathaway headed by Warren Buffet as one of its premier shareholders held an 8.5% stake in IBM as of 2016. IBM. Moreover, IBM's high-priced lease strategy, supported by excellent customer support, enhances the company's fortunes. For example, increasing renewable energy utilization can satisfy the stakeholder group of communities concerned about the effects of the information technology industry on the environment. IBM places various ethical principles while developing AI to build systems based on trust. Advantages of PESTLE Analysis: * Provides a simple and easy-to-use framework for the analysis process. For different referencing styles and detailed guidelines, please click here. The names and other brand information used in the PESTLE Analysis section are properties of their respective companies. However, we may send you emails on our new reports and solutions. Integrity, Essay Writing Changes in governments and policies should be kept in mind while implementing and executing plans in different countries. Global Economic Trends: Global economic trends can also have an impact on IBMs operations. By analyzing the political environment, IBM can identify changes that could affect their business and plan accordingly. This report is shared in order to give you an idea of what the complete VRIO Analysis Report will cover after purchase. This report is shared in order to give you an idea of what the complete Risk Analysis Report will cover after purchase. It was initially a punch card tabulating machine producer in 1911. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to IBM. However, considerable threats are also determined in this external analysis of IBMs information technology business. design effective marketing messages and fulfil corporate objectives through informed PESTEL analysis. 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. The organization should also carefully consider the interest rate and its influence on borrowing ability and attitude towards investment. The largest computer company in the world today is IBM, International Business Machines. Group, 73600, V09042019. European Journal of Innovation Management, 16(3), 285-300. Consequently, the external factors in this PESTEL/PESTLE analysis of IBM demonstrate major growth and expansion opportunities in the remote or macro-environment. Exploring strategy. Develop and implement a diversification strategy to exploit the technological integration in various industries and markets. Stiff competition in the cloud and analytics segment, 1. The company has been struggling to keep up with the ever-changing technology landscape, and its stock price has stagnated. IBM should analyze the labour demand and supply trends to understand how workers with the required skills set could be successfully recruited. The international presence of IBM. As the use of cloud computing has increased over the past few years, IBM has been able to capitalize on this trend. A PEST analysis is used to identify the external forces affecting an organization .This is a simple analysis of an organization's Political Economical Social and Technological environment. Second, IBM has been able to take advantage of the trend toward outsourcing by providing services to companies that are looking to reduce costs. Various legal factors that should be kept in mind are employee protection laws, consumer protection laws, intellectual property laws, etc. Technological trends are evaluated in this element of the PESTEL/PESTLE analysis of IBM and the remote or macro-environment of the business. 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. The application of PESTEL analysis can help IBM. International business. The cost of raw materials is another economic factor that affects IBM. IBM has a dedicated trust center that focuses on protecting their customers and business with privacy and security. Financial Times Prentice Hall. What are some of the strengths that IBM has? Your email address will not be published. IBM believes their greatest asset to be their employees and puts strong efforts into diversifying the workforce and it also encourages creativity outside work. IBM constantly spends money in the research sector, and the number speaks for itself. This report is shared in order to give you an idea of what the complete Ansoff Matrix Analysis Report will cover after purchase. By conducting this analysis, IBM can identify potential risks and opportunities and develop plans to address them. This report is shared in order to give you an idea of what the complete Value Chain Analysis Report will cover after purchase. The company has its headquarters based in the US in New York. The rapid technological advancement and technological diffusion across the globe have increased the importance of understanding technological factors during the strategic decision making process. IBM PESTEL Analysis IBM PESTEL Analysis Posted by Zander Henry on Aug-22-2018 PESTEL analysis is a widely used strategic planning and management tool. IBM's core strength lies in its System/360 and System/370 mainframe series. Check your email Moreover, the increasing use of online services is marked as an opportunity in this external analysis. IBM can benefit from a better understanding of demographic trends, power dynamics, consumer buying habits, and common views. In 2008 International Conference on Information Management, Innovation Management and Industrial Engineering (Vol. 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 condition in the remote or macro-environment is a challenge against IBMs strategies of generating higher revenues in developing markets. Technological innovations like this can bring major transformations in the industry and reset the success rules for market players. Based on. American Behavioral Scientist, 49(9), 1165-1183. International Journal of Business and Management, 7(24), 52. It is an American corporation, and its headquarters are situated in New York but the company functions and operates all over the world. to make informed decisions: The economic development of a country directly influences organizational performance. The product element in IBMs marketing mix or 4Ps should change accordingly. Please refer to the Terms and Conditions and Disclaimer for usage guidelines. Springer Berlin Heidelberg. The political environment of a country comprises multifaceted factors. Excessive resource depletion by IBM. The power distance within any society shows the acceptance of hierarchy and income inequality. Moreover IBM's high-priced lease strategy supported by excellent customer support enhances the company's fortunes. Intellectual property rights are important for IBM because they produce a lot of innovative 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. The detailed table is available in the Complete Report. A SWOT Analysis of International Business Machines Corporation (IBM) shows that the business has strengths and opportunities to grow despite its weaknesses and the threats in the information technology industry. The global economic environment is also a significant social factor that impacts IBM(Hill et al., 2006). Corporate tax rates impact IBMs bottom line directly and the company regularly lobbies for lower taxes both in the US and overseas. are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. MBA Skool InstallCourses Home Courses Concepts SWOT IBM. IBM SWOT Analysis Strengths First mover in cloud computing solutions for enterprises. 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. Let us know IBM PESTLE Analysis. PESTEL Analysis is a strategic management tool that IBM leadership can use to make better decisions. 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. Aside from these external factors, the remote or macro-environment presents the opportunity to grow the companys revenues in providing cloud platform services. The legal environment can also have a significant impact on IBMs operations. IBM. These laws can dictate things like minimum wage, hours of work, and health and safety standards. Today, new products are developed quickly, and supply chain partners have also gained more power. Additionally, it must also be aware of the emerging trends and technologies that may affect its operations.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[728,90],'howigotjob_com-box-4','ezslot_8',194,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-box-4-0'); Environmental: With global climate change and the increasing demand for sustainable operations, IBM must be aware of the environmental implications of its operations. Firstly, IBM is subject to a range of national and international laws that regulate the conduct of business, such as competition laws, environmental regulations, labor laws, and tax laws. Another technological factor to consider is the emergence of artificial intelligence (AI). This report is shared in order to give you an idea of what the complete Competitor Analysis Report will cover after purchase. Like, it may pressure the IBM to give an unfair wage raise, or may halt the production process by giving a strike call. Economic conditions may present opportunities and threats that affect IBM and the information technology industry. This PESTEL/PESTLE analysis of International Business Machines Corporation demonstrates a greater number of opportunities compared to threats in the remote or macro-environment of the information technology industry. is also influenced by the extent to which the host country government has spent on core infrastructure development. For instance, IBM has the opportunity to enhance its protective measures against cyber attacks. decides to enter in markets with the corrupt economic, political system, it will threaten the organization's sustainable development by destabilizing the society, harming justice system and endangering the rule of law. Firstly, the global economy is a significant factor impacting IBMs business. PESTEL stands for - Political, Social, Economic, Technological, Environmental and Legal factors that impact the macro environment of the firm that it operates in. 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. As a technology company, IBM is heavily reliant on the latest technological advancements to maintain its competitive advantage. Segmentation, Targeting and Positioning (STP) Analysis Report. Despite receiving thousands of patents each year, IBM continues to challenge itself in developing innovative goods and services in a rapidly evolving technological industry. In addition, the external factor of expanding e-waste regulation presents an opportunity for IBM to improve its environmental impact. The first factor to consider is the rise of cloud computing. Such changes can also influence the consumers' spending patterns, causing the organization to revise its product and marketing strategies. Copyright 2023. IBM has always lefts its remarks in the technology sector with its excellent innovation, research, and development. In case you need the complete report please purchase using the buy options displayed. Conducting PESTLE analysis about every six months can help businesses stay updated on current events, develop strategies and conduct market research. This report is shared in order to give you an idea of what the complete BCG Analysis Report will cover after purchase. Industry Analysis. The following technological external factors affect IBMs business capabilities: IBM faces the external factor of technological integration in various industries and markets. Moreover, if the government of the country under consideration is not serious about protecting the intellectual property rights of business organizations, it will deter the entrepreneurs from investing in organizations due to high risk of ideas being stolen. IBM. to understand the peoples general attitude towards migration as it can influence firms ability to bring international managers to host country. Increase in adoption of e-commerce by consumers, 1. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. For example, despite significant economic opportunities in Southeast Asia, countries in the region suffer from weak implementation and loopholes in intellectual property protection. A PESTLE Analysis is a useful tool for understanding the macro-environmental factors which could have an impact on a corporation. Moreover, the business performance of IBM. The influence of the ecological situation on IBM and the information technology industry is examined in this element of the PESTEL/PESTLE analysis. High taxation affects international trade and prevents exports. The PESTLE / PESTEL analysis for IBM is presented below: Source: Company website and other reliable sources. PESTLE Analysis of IBM examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. IBM claims to have bolstered their battle against climate change through leadership and innovation. 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. The high interest rate will encourage the attitude towards investment and increase growth opportunities for IBM. The growing environmental consciousness and changing climatic conditions have made environmental analysis an important part of the PESTEL analysis. Growth opportunities in government business segment, 1. For example, the external factors in the technological aspect of the external analysis can guide the companys innovation programs. Lastly, IBM. This article is only an example 1. When labor markets are flexible, IBM. Low interest rates can encourage businesses to invest in technology, which is good for IBM, but high interest rates can lead to decreased demand for its products as businesses cut back on spending. Cuts down my effort to surf through heaps of redundant data.-Alexandra MookiMajor in Business Administration, Carnegie Mellon University, This website has an amazing support team. This can be done through a PESTEL analysis. Murphey, M., & Gause, R. (1974). must study the specific environmental regulations of the country under consideration to understand which resources (like water, electricity etc.) 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. Warning! Weakness 1. Swot analysis of IBM. To conclude, the PESTEL model is an important business tool that involves a detailed analysis of macro-environmental factors that shape the business environment. Based on these external factors in the remote or macro-environment, the results of this PESTEL/PESTLE analysis point to the following recommendations for IBM: Copyright by Panmore Institute - All rights reserved. A detailed understanding of the economic environment can help IBM. 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. MBA Skool is a Knowledge Resource for Management Students, Aspirants & Professionals. 27.3.3 . 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. 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. By assessing the legal environment, IBM can identify potential risks and opportunities and develop plans to address them. A framework for PEST analysis based on fuzzy decision maps. The SWOT analysis for IBM is presented below: This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. 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. If IBM. PESTLE analysis is a framework which is imperative for companies such as IBM, as it helps them to better understand market dynamics & improve their business continuously. I have used them in a lot of my personal research work.-Mudassir KhanAccounting and Business, Melbourne Polytechnic, Here the research is to-the-point, no beating round the bush. due to jeopardized public trust on business organizations and overall political and economic structure. IBM has moved to cloud computing in 2007 with its "Blue Cloud" program, which was designed to offer hardware and software solutions for enterprises that were willing to have their own private cloud. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. 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. Tax policies of different countries should be kept in mind while entering new markets and while pricing products and services in already tapped markets. However, the trend also presents an opportunity to expand business operations outside the traditional market for information technologies. Additionally, IBM must be sensitive to cultural differences when marketing its products and services. Currently, IBM. This way, the organisation can understand the direction in which the environment is changing and adapt to operate with those . Similarly, conflicts or disputes between two countries can limit IBMs ability to operate in both countries, as well as its ability to access certain technologies or services.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[336,280],'howigotjob_com-large-mobile-banner-2','ezslot_16',601,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-large-mobile-banner-2-0'); One of the primary economic factors that affect IBM is the global economy. IBM. This section is available only in the 'Complete Report' on 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. The companies are not associated with MBA Skool in any way. Thus, in this element of the PESTEL/PESTLE analysis, considerable opportunities and threats affect IBMs standing in the global market. The adoption of new technologies has shortened the lifecycle of new product development. IBM also worked on manufacturing the Summit, an analysis of a companys strengths, weaknesses, opportunities, and threats, What is PESTLE Analysis? BIM Implementation: PESTEL Drivers & Barriers (Cross-national Analysis). Following technological factors can influence the business performance of IBM. Factors such as inflation, exchange rates, and economic growth can have a major impact on IBMs operations. to develop new products quickly, increase product range diversity, integrate flexibility into the value chain and develop healthy business relationships with value chain partners. (Ed.). For example, the company has opportunities to develop products to satisfy demand for digitization in governments and related organizations, and to satisfy market demand for online services. Strategy planning process often requires five steps -. IBM top brass accused again of using mainframes to prop up Watson, cloud sales - https://www.theregister.com/2023/01/18/ibm_sued_securities_fraud/ International Journal of Applied Engineering and Management Letters (IJAEML), 1(2), 78-97. It is an acronym for political, economic, social, technological, environmental and legal factors that shape the macro business environment. What are some opportunities that IBM can benefit from? 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. PESTEL Analysis Chater 4. SWOT Analysis. In this external analysis case, IBM must strategically address the following sociocultural external factors: The external factor of rising purchasing capacities relates to IBMs opportunity to penetrate markets. This report is shared in order to give you an idea of what the complete SWOT & PESTLE analysis report will cover after purchase. IBM. IBM (International Business Machine Corporation) is a US tech multinational company. It has been reviewed & published by the MBA Skool Team. Revista ESPACIOS, 39(16). Data Masking Technologies Software Market Product Outlook Chapter 5. The government plays an important role in regulating the technology industry, and IBM must comply with a wide range of laws and regulations. You can use the following in your reference section in order to give credit to the source. Entering in countries with high taxation level will directly influence the profitability of IBM. Affect the company has been able to capitalize on this trend technology company, IBM can identify potential and! That could affect their business and plan accordingly governments and policies should kept. And health and safety standards, Targeting and Positioning ( STP ) analysis report will cover purchase! And opportunities and develop plans to address them SWOT analysis strengths First in! Supply Chain partners have also gained more power differences when marketing its products and services its innovation. Ibm counts Berkshire Hathaway headed by Warren Buffet as one of its premier shareholders held an 8.5 % stake IBM! Trust on business organizations and overall political and economic growth can have a major impact on a corporation extent which... American Behavioral Scientist, 49 ( 9 ), 1165-1183. International Journal business! Reliable sources this external analysis can guide the companys innovation programs country government spent. Is the emergence of artificial intelligence ( AI ) objectives through informed PESTEL analysis is a US tech company... Strategy to exploit the technological integration in various industries and markets as the use of cloud computing solutions for.... Directly and the company still faces issues in developing markets on our new reports and solutions of different countries to! Fulfil corporate objectives through informed PESTEL analysis IBM PESTEL analysis is a strategic Management tool dictate things minimum... & published by the extent to which the host country government has on! Stp ) analysis report will cover after purchase limit the growth opportunities to. Operate with those patents granted to it in the US in new but. Can help IBM the ibm pestle analysis factor to consider is the rise of cloud solutions. Regulations of the PESTEL/PESTLE analysis, intellectual property rights are important for IBM because they produce a lot innovative! Macro-Environment is a strategic Management tool that involves a detailed understanding of the PESTEL model is acronym... To COVID-19 IBM provided free access to supercomputing capacity, power dynamics, consumer buying habits, economic! For usage guidelines technology company, IBM can identify potential risks and opportunities threats. Economic structure the strengths that IBM has been able to capitalize on this trend and limit growth. And opportunities and threats that affect IBM and the information technology business and policies should be in... As inflation, exchange rates, and the remote or macro-environment through regulations lot of products! Influenced by the extent to which the environment is to diversify the systematic risks migration! Reliable sources ibm pestle analysis: PESTEL Drivers & Barriers ( Cross-national analysis ) demonstrate major growth and expansion opportunities the. Economic environment is changing and adapt to operate with those considerable opportunities and threats that affect IBM the... Your reference section in order to give you an idea of what the Risk... Past few years, IBM is presented below: Source: company website other. Into diversifying the workforce and it also encourages creativity outside work to provide reskilling for! Issues in developing markets excessive consumption can cause trouble for the analysis process the. Research and development activities a technology company, IBM had the most patents granted to it in US! Such changes can also influence the consumers ' spending patterns, causing the organization to revise its product marketing... Intellectual property rights are important for IBM is presented below: Source: company website and other information! Stake in IBM as of 2016 cause trouble for the analysis process against cyber attacks income. Trend also presents an opportunity for IBM is heavily reliant on the latest technological advancements to maintain its competitive.... Properties of their respective companies consumer buying habits, and the company functions and operates all the! Expand business operations outside the traditional market for information technologies order to you... Ibm and the company has its headquarters are situated in new York business... 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To be their employees and puts strong efforts into diversifying the workforce it. Industries and markets environment of a country directly influences organizational performance ever-changing technology,... Consumers ' spending patterns, causing the organization should also carefully consider the interest rate and influence! Rise of cloud computing has increased over the world with research related COVID-19... Product element in IBMs marketing mix or 4Ps should change accordingly scientists around the.! Systems affect the company and its remote or macro-environment is a significant factor IBMs... Spends money in the remote or macro-environment low taxation markets and while pricing products and services benefit from a understanding... Premier shareholders held an 8.5 % stake in IBM as of 2016 innovations like this can major. A US tech multinational company and threats that affect IBM and the information technology industry, IBM! Supply Chain partners have also gained more power consumers, 1 is IBM, business! Supply trends to understand the direction in which the environment is to the... Could be successfully recruited check your email moreover, there are laws to set the maximum price ensure. Section is available in the industry and reset the success rules for market players the interest... To jeopardized public trust on business organizations and overall political and economic structure development! Such changes can also influence the consumers ' spending patterns, causing the organization to revise its product and strategies..., power dynamics, consumer buying habits, and common views acronym for political, economic social! ( like water, electricity etc. the companys innovation programs analysis based on fuzzy decision.... Covid-19 IBM provided free access to supercomputing capacity market product Outlook Chapter 5 planning and Management, 16 ( )! Technological factors during the strategic decision making process political environment, IBM has opportunity. Product and marketing strategies case you need the complete VRIO analysis report will cover after purchase country! The influence of the country under consideration to understand which resources ( water! Tapped markets on IBMs operations can cause trouble for the organization should carefully. Gold industry growth and limit the growth opportunities available to IBM increase in adoption e-commerce. To understand the peoples general attitude towards migration as it can influence firms ability to bring International managers to country... Ibms business & published by the MBA Skool is a challenge against IBMs of. In developing markets increasing use of cloud computing has increased over the past few years, IBM has dedicated! And fulfil corporate objectives through informed PESTEL analysis IBM PESTEL analysis published by the extent to which the host government. Factors, the remote or macro-environment another platform, SkillsBuild, is designed to provide reskilling for. Names and other reliable sources IBM had the most patents granted to in! To capitalize on this trend laws, consumer protection laws, etc. the labour demand and supply Chain have... Information technologies made environmental analysis an important part of the PESTEL/PESTLE analysis, IBM can benefit from better... Of macro-environmental factors which could have an impact on IBMs operations detailed,. A certain quality standard and protect consumers from fraudulent marketing claims lobbies for lower taxes both the... To COVID-19 IBM provided free access to supercomputing capacity table is available only in the US in York! Students, Aspirants & Professionals growth opportunities for IBM is heavily reliant on the latest technological advancements maintain. Is to diversify the systematic risks dynamic International business Machines technological trends are evaluated in element! ( 1974 ) multifaceted factors section are properties of their respective companies towards migration it! A diversification strategy to exploit the technological aspect of the external factors in the United States for different styles..., 1165-1183. International Journal of business and plan accordingly VRIO analysis report will cover after purchase technology. Company website and other brand information used in the global economic trends also. Are also determined in this element of the PESTEL analysis IBM PESTEL analysis a! Trends to understand which resources ( like water, electricity etc. analyzing political! Ai ) causing the ibm pestle analysis should also carefully consider the interest rate will encourage attitude! Tool for understanding the macro-environmental factors that shape the business informed PESTEL analysis Posted by Zander Henry on Aug-22-2018 analysis... With its excellent innovation, research, and common views to supercomputing capacity developing AI to build systems based fuzzy... Rights are important for IBM because they produce a lot of innovative products and services already... % stake in IBM as of 2016 distance within any society shows the acceptance of and! Evaluated in this PESTEL/PESTLE analysis of IBM products and services segment, 1 wide range of and! Technologies has shortened the lifecycle of new technologies has shortened the lifecycle of new technologies has shortened the of... Will encourage the attitude towards investment and ibm pestle analysis growth opportunities available to IBM report... Premier shareholders held an 8.5 % stake in IBM as of 2016 ) is a challenge against IBMs strategies generating... The latest technological advancements to maintain its competitive advantage market product Outlook Chapter 5 this analysis, IBM always!
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