Swot analysis ibm
4 likes•8,049 views
IBM's strategic goals are to grow annual revenues by at least 5% and increase earnings per share by at least 10%. Its strategic plan involves openness by sharing innovations and collaborating with customers and rivals to reduce the cost of providing services. The document outlines IBM's SWOT analysis, identifying strengths like intellectual property and R&D, weaknesses such as high costs and employees, opportunities like open-source and standards, and threats like low-cost competition and outsourcing. Strategies are developed to leverage strengths and opportunities while addressing weaknesses and threats.
Swot analysis ibm
- 1. What is IBM’s Strategic Goal(s)? To grow revenues at least 5% each Formulating Business year To increase earning per share at Strategy Using least 10% SWOT Analysis IBM Case (Solutions) IST 301/ A. Konak 2 What is IBM’s Strategic Plan(s)? SWOT Internal Analysis-Strengths “Openness”- Openness” Valuable intellectual property, – sharing IBM innovations software, patents, ideas... – collaborating with customers and rivals Talented work force Reduce the cost of providing services Research & development ($5.7 billion) A multi-national organization multi- IST 301/ A. Konak 3 IST 301/ A. Konak 4 1
- 2. SWOT Internal Analysis- Weaknesses SWOT External Analysis-Threats 260,000 expensive employees Low-cost generic competition Low- High operating costs (commoditization) Outsourcing New competitors in services market (e.g., Dell, Accenture) IST 301/ A. Konak 5 IST 301/ A. Konak 6 SWOT External Analysis- SWOT Analysis Opportunities match strengths with opportunities Collaborative innovation Strengths Opportunities Open-source Open- • Open-source •Valuable intellectual property Open- Expensive products of competitors •Talented work force •Research & development • Standards→economic Standards→ expansion Accepting standards brings economic expansion IST 301/ A. Konak 7 IST 301/ A. Konak 8 2
- 3. SWOT Analysis match weaknesses with threats Develop Strategies Weaknesses Threats to exploit opportunities in areas where the organization has strengths •Expensive workforce • Low-cost competition Low- •High operating costs • Outsourcing to defend against threats in areas • Bigger competitors where organization has weakness IST 301/ A. Konak 9 IST 301/ A. Konak 10 Example Example Strengths Opportunities Weaknesses Threats •Valuable intellectual property • Open-source Open- •Expensive workforce • Low-cost competition Low- •Talented work force • Standards→economic Standards→ •High operating costs • Out sourcing •Research & development expansion • Bigger competitors Strategy Tactics Expectations Tactics Strategy • Support open- • Utilize workforce source Making pie bigger Openness more efficient development IBM can sell services Reduce • Shutdown • University Cost of Services operations in EU Programs • Move to low cost • Give precious IST 301/ A. Konak 11 places IST 301/ A. Konak 12 technology away 3