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Deeply involved in the Apollo missions, IBM assigned over 4,000 employees to man computer systems to help NASA track the orbital flight of the Mercury astronauts. The computers had around 4K of ram, which is half the size of this article in a plain text document.
IBM is, perhaps, the best known computer company in the world. It began as the Computing, Tabulating & Recording Company (C-T-R) founded by Herman Hollerith in the late 1800s. Their first large contract was to provide tabulating equipment for the tabulation and analysis of the 1890 US census. At its beginning, it was a merger of three manufacturing businesses, a product of the times orchestrated by the financier, Charles Flint. From these humble beginnings sprang the company that Thomas Watson Sr.
This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by IBM.
IBM At A Glance – IBM SWOT Analysis
Company: International Business Machines Corporation
Founders: Charles Ranlett Flint
Year of establishment: 16 June 1911, Endicott, New York, United States
CEO: Arvind Krishna
Headquarters: Armonk, New York, United States
Employees (Dec 2020): 345,900
Ticker Symbol: IBM
Annual Revenue (Dec 2020): US$73.6 Billion
Profit net income (Dec 2020): US$5.6 Billion
Products & Services: Computer hardware | Cloud computing | Blockchain | Automation | Artificial intelligence | Application services | Business continuity services | Business consulting services | Hybrid cloud consulting and services | Network services | Technology support services | Talent management services
Company Website: www.ibm.com
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IBM SWOT Analysis – SWOT Analysis Of IBM
SWOT Analysis Of IBM analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With IBM SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about IBM SWOT Analysis. Below Is The Detailed SWOT Analysis Of IBM.
IBM Strengths – IBM SWOT Analysis
1. Brand Valu: IBM is ranked 22nd in 2016’s Brand Finance report. Its brand value stands at $31.786 billion.
2. Sector Ranking: IBM ranks 6th sector in the technology industry.
3. Business Model: IBM is focused on two aspects of its long term growth strategy. To help clients become more innovative, efficient, and competitive by applying business insight and IT solutions. Second, to provide long-term shareholder value. They have superior capabilities in offering services, software, and systems.
4. Being updated: IBM runs businesses aggressively in order to keep up with changing technology demands around the world. It acquires or sells businesses to achieve this. It acquired Compose, which provides MongoDB and Redis services for mobile app developers. Low margins led to IBM selling its microelectronics division. To expand its capabilities in big-data and analytics, they have spent more than $17 billion on 30 acquisitions.
5. Data Analytics: IBM devotes almost a third of its R&D budget to data analytics and cognitive computing. Data analytics alone has brought them around $17 billion in revenue. The Watson Group was also created to commercialize cognitive computing innovation.
6. Middleware Market This market share is 29.1% in both the middleware market as well as application infrastructure. For the 14th consecutive year, they have been the market leader in this segment.
7. R&D: IBM is a large R&D organization and is committed to the development of the technology of tomorrow. There are 12 global labs. With Watson now in the picture, they can introduce products to this new segment and be the first to move.
IBM Weaknesses – IBM SWOT Analysis
1. Brand Value Drop: IBM saw a dramatic decline in its brand value between 2015 and 2016. It had a brand worth of $35.428billion in 2015. This is a decrease of $3.642 trillion.
2. Litigations: IBM is regularly involved in litigations. Lusacell sued IBM in April 2014. It claimed that IBM had made false representations that induced Iusacell Mexico to sign an agreement. Bridgestone America filed a $600,000,000 lawsuit against IBM in 2013 over the allegedly flawed system.
IBM Opportunities – IBM SWOT Analysis
1. Cloud-Based Services: The Demand for cloud computing services continues to grow and will surpass $1.9 billion in 2018. Public-based cloud services will increase at 33%
2. Company Expansion : This partnership allows the company to expand its business and bring personal apps to the enterprise environment.
3. Business of Consulting: IBM plans invest $100 million to expand its global consulting business. They plan to open 12 new IBM Interactive Experience Labs around the world.
IBM Threats – IBM SWOT Analysis
1. Competitor: They are up against Accenture and Amazon. CSC, Fujitsu, Hewlett-Packard, and CSC also compete. Their software business competes against CA, Microsoft, Oracle, and SAP. This technology competes with Cisco Systems and Dell. EMC, HP, and Oracle.
2. Global Economy: As the world is in turmoil, multinational companies will need to monitor the prices of raw materials and labour. To keep prices competitive. This can also cause currency fluctuations that could impact their earnings and revenue per share.
IBM SWOT Analysis Overview Template
This is the SWOT report that IBM has done. Please let us know if you have additional suggestions to add.
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