International Business Machines (IBM) SWOT Analysis “SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.” International Business Machines (IBM) International Business Machines Corporation (IBM) is an information technology company providing business technology and consulting services. The company offers a range of services and technologies, which include hardware, software, financing, research and chip technologies. The company is a leading provider of IT services in the industry. A leading position in the market enhances the company’s brand image and competitive position. Intense competition, however, adversely affects the company’s market share, revenues and margins. Page 1 of 2 International Business Machines (IBM) SWOT Analysis Strengths, Weaknesses, Opportunities and Threats (SWOT) Location of Factor TYPE OF FACTOR Favorable Internal Strengths Unfavorable Weaknesses ¾ Leading provider of IT services ¾ Strong research and ¾ Weak enterprise mobility product portfolio development capabilities ¾ Strong profitability External Opportunities ¾ Expansion in emerging markets ¾ Growing information on demand tools market ¾ Strategic acquisitions Page 2 of 2 Threats ¾ Intense competition ¾ Economic Slowdown in US and Europe