IBM SWOT Analysis, Competitors & USP

IBM SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of IBM, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is a proven management framework which enables a brand like IBM to benchmark its business & performance as compared to the competitors, and make strategic improvements. IBM is one of the leading brands in the IT & Technology sector.

The article below lists the IBM SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the IBM SWOT Analysis:

SWOT Analysis of IBM

For IBM, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.

IBM Strengths

The strengths of IBM looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. Below are the Strengths in the SWOT Analysis of IBM :

1. IBM is one the world's leading technology companies having widespread global presence & strong diverse product & service offering

2. IBM has a strong brand legacy since its inception in 1911, which has continued to grow & diversify across countries

3. The company has a diverse offering in its products, namely in cloud computing, artificial intelligence computer software & hardware

4. IBM also offers services outsourcing, consulting, professional services and management services

5. The company has its business operations in more than 150 countries

6. More than 300,000 people are employed with IBM globally

7. The annual revenue of the company with all combined businesses is more than $70 billion

8. IBM is a world leader in patents & inventions like ATM, floppy disk, hard disk drives, SQL programming etc. are credited to the company

9. Strategic acquisitions of technology, AI and consulting companies have strengthened its position in the competitive market

10. Marketing efforts of IBM include sponsoring events like Olympics, Wimbledon, US Open, NFL, Golf tournaments and more

11. The company invests in TV commercials, print ads, billboards, online ads, social media engagement and digital marketing to ensure its high brand awareness

12. The brand has recognized regularly as one of the best brands in the world by the likes of Forbes, Fortune 500 etc.

IBM Weaknesses

The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Here are the weaknesses in the IBM SWOT Analysis:

1. Intense competition from other leading global IT companies means limited market share growth for IBM

2. Challenge of employee retention as attrition is high in the industry

3. Being a global brand, it has faced legal issues & lawsuits in the past which have hurt its brand image

IBM Opportunities

The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. Following are the opportunities in IBM SWOT Analysis:

1. IBM can look at emerging markets and can grow more there

2. The company can continue its growth in diverse opportunity areas like cloud, business consulting, sustainable business projects etc.

3. Domestic projects in countries can be taken up by IBM using a local workforce, thereby strengthening its global footprint

IBM Threats

The threats for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. The threats in the SWOT Analysis of IBM are as mentioned:

1. Many technology companies coming up with internet boom have reduced the dominance of IBM

2. Concerns over confidential information of users being vulnerable to leaks

3. Economic recession and changing government policies can impact business operations

IBM Competitors

There are several brands in the market which are competing for the same set of customers. Below are the top 12 competitors of IBM:

1. Accenture

2. HP Hewlett-Packard

3. Oracle

4. Apple

5. Microsoft

6. Salesforce

7. Cognizant

8. Amazon

9. Dell

10. Tata Consultancy Services (TCS)

11. Infosys

12. Wipro Technologies

Hence this concludes the IBM SWOT analysis.

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About IBM

IBM Overview
Parent Company	International Business Machines Corporation (IBM)
Category	IT Services
Sector	IT & Technology
Tagline/ Slogans	Let's build a smarter planet; THINK
USP	One of the best known brands in the world
IBM STP
Segmentation	Enterprises seeking IT solutions
Target Market	Enterprises looking for end to end IT solutions to transform business
Positioning	IBM Is one the world's leading IT & consulting companies

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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