The largest computer company in the world today is IBM, International Business Machines. The health and efficiency of financial markets will determine IBM.s ability to raise the capital at fair prices. In some societies, consuming the offered product is considered a status symbol, while, some people use the same products for functional aspects. IBM must account for the following economic external factors in its remote or macro-environment: Stable economic growth in major markets creates opportunities for firms like IBM to continue developing their operations with minimal issues regarding undesirable economic trends in these markets. Digital Marketing and Social Media Strategy Analysis Report. The observation of social class stratification is also important for IBM. They helped me with my custom research and delivered before time! The company is also seeking to capitalize on the growing trend for artificial intelligence (AI) with its Watson platform. Growing tensions and instabilities in the global political environment can affect the Gold industry growth and limit the growth opportunities available to IBM. Economic conditions may present opportunities and threats that affect IBM and the information technology industry. A rigid labour market with powerful worker unions can cause various problems for IBM . Shifts in consumer spending, interest rates, exchange rates, and other economic indicators can affect the companys ability to access capital and labor, as well as its ability to compete in the global market. are influenced by the prevailing economic structure. Corporate tax rates impact IBMs bottom line directly and the company regularly lobbies for lower taxes both in the US and overseas. on WhatsApp for any queries. IGI Global. A framework for PEST analysis based on fuzzy decision maps. 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. Analyzing the company's challenges, strategies, and successes would provide reliable insights to business professionals and students to understand their business model. All Rights Reserved by Barakaat Consulting. A close eye should be kept on analyzing the 5G and determining its potential to deliver positive business outcomes through enhanced user experience, increased speed and expanded access. are considered rare or which species are endangered whose excessive consumption can cause trouble for the organization. By assessing the social environment, IBM can identify potential risks and opportunities and develop plans to address them. 1. 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. Finally, the exchange rate fluctuation can also influence the profitability and international trade. Political instability in these and other countries can also impact IBMs business, as can trade disputes and tariffs. in choosing the right market segment/segments with high growth potential. Some countries offer subsidies for encouraging investment in renewable technologies. IBM has always lefts its remarks in the technology sector with its excellent innovation, research, and development. PESTLE analysis involves tracking the changes in the business environment to discover facts about external factors that can help the organisation evaluate risks, minimise potential threats, and maximise opportunities. By conducting this analysis, IBM can identify potential risks and opportunities and develop plans to address them. PESTLE analysis is also referred to as PESTEL analysis. Annual Report - https://www.ibm.com/annualreport/assets/downloads/IBM_Annual_Report_2022.pdf academic writing services at least once in their lifetime! 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. High unemployment signals the availability of surplus labor at comparatively lower wages. Changes in government policies or regulations can have a direct impact on the companys operations and profitability. Pearson Education. This report is shared in order to give you an idea of what the complete Risk Analysis Report will cover after purchase. IBM. should also carefully analyze the availability of skilled human capital as a shortage of skilled labor can affect business efficiency and make talent attraction and retention more challenging. In addition, the external factor of expanding e-waste regulation presents an opportunity for IBM to improve its environmental impact. IBM should analyze the labour demand and supply trends to understand how workers with the required skills set could be successfully recruited. IBM is known for outsourcing pc manufacturing to save costs and on the other hand, IBM helps its clients by taking over their IT management. This includes understanding the cultural and demographic differences between markets and being able to adjust its products and services to meet the changing needs of its customers. This way, the organisation can understand the direction in which the environment is changing and adapt to operate with those . Hill, E. J., Jackson, A. Strategy planning process often requires five steps -. The Summary report contains the SWOT & PESTLE table contents only. 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. The political factors in the IBM PESTLE Analysis can be explained as follows: IBM is one of the biggest Information Technology companies in the world headquartered in the US and operates in more than 175 countries. The environmental environment can also affect IBMs operations. Entering in mature industries can be more challenging due to market saturation than industries at the growth stage. As the cost of raw materials increases, so does the cost of producing IBMs products and services.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[728,90],'howigotjob_com-leader-2','ezslot_17',602,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-leader-2-0'); Social factors include consumer preferences and tastes, government regulations, and global economic trends. The following is a PESTEL analysis of IBM: Political Factors 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. It is also essential to regularly monitor the external environment to adjust the companys strategic planning according to environmental changes. Your email address will not be published. IBM. The corruption can influence various business operations, ranging from licensing, contracting, fraudulent deals to frequent lawsuits. IBM. IBM has faced a lawsuit against them in 2021 on account of age discrimination, such lawsuits hamper the image of the company and also significantly increases costs and decreases profitability. New technologies can provide IBM with new opportunities to grow and expand its businesses. It requires IBM. Another political factor that affects IBM is the trade agreements between countries. In relation, the company can enhance its innovation processes to exploit opportunities based on political support for e-technologies. It uses the SWOT and PESTEL analysis to assess the external environment. cannot enter a new market without studying in detail the legal environment and regulatory structure of the new consumer market. Nivea SWOT Analysis: Why is the Skincare Brand so Successful? This trend is a threat because it attracts new entrants from other industries. What are some weaknesses that IBM struggles with? Ranging from political factors to environmental factors, each factor comprises various variables that influence the strategic decision making process of business organizations like IBM. With Buffets faith shaken in the company, IBM is likely to face further scrutiny over its performance in the coming quarters. inspiration, guidance, and understanding. Nonetheless, cybercrime is also marked as an opportunity in this external analysis. On the other hand, the rapid growth of developing markets is an external factor that corresponds to growth opportunities for information technology firms, especially through the market penetration strategy (Read: IBMs Generic Strategy for Competitive Advantage and Intensive Growth Strategies). Moreover, considering the development and maturity level of technology in the respective market is also important. For example, the cybercrime threat imposes significant pressure on the company and its clientele. must study and predict the labor market conditions to understand how it can attract talented workers and leverage their skills to improve business performance. And it can be divided into 4 pieces as follows: 1) Reallocating resources to enhance their server product business and reduce operation costs and optimize the efficiency. The political environment can influence IBM in many ways. Digital commerce and the rise of alternative payments methods: https://www.mckinsey.com/industries/financial-services/our-insights/banking-matters/digital-commerce-and-the-rise-of-alternative-payments-methods This article is only an example * They will have some level of impact on it. 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. 1. by Haseeb | Jan 29, 2017 . The power distance within any society shows the acceptance of hierarchy and income inequality. Data Masking Technologies Software Market Product Outlook Chapter 5. IBM PESTEL/PESTLE Analysis & Recommendations 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 industry's remote or macro-environment, such as the ones outlined in this PESTEL/PESTLE analysis of the firm. In. This paper looks at the internal and external factors that impact on the organization. IBM, or International Business Machines, is an American multinational technology company. For example, IBM has been subject to investigations by the US government over its business dealings in China and Russia. A. D., & Martinengo, G. (2006). require the organization to consider these differences to avoid undesired circumstances carefully. Intellectual property regulations are designed to protect the companies' patents and valuable ideas. Sustainable business strategies and PESTEL framework. IBM has been a leader in the development and implementation of blockchain technology, which has allowed them to create secure and reliable platforms for data sharing and transactions. To assist scientists around the world with research related to COVID-19 IBM provided free access to supercomputing capacity. It started under the name of "Computing-Tabulating-Recording-Company" and later it became IBM. PESTEL stands for - Political, Social, Economic, Technological, Environmental and Legal factors that impact the macro environment of the firm that it operates in. With high ASD, your ad post will be displayed across all our 2500+ pages.Grow your business with effective advertisement! In 2020, IBM spent around $6.5 billion in the R&D sector. please submit your details here. Technological factors are an important part of the PESTEL analysis of IBM. can benefit from it and invest in renewable technologies to ensure long-term sustainability. Technological trends can be used to start the creative social media campaigns for developing online brand communities. Exploring strategy. (2008, December). Lastly, taxation is also a major concern for the company. Marketing and human resource strategies in a traditional, patriarchal society with clearly distinguished gender roles will be different from societies with low gender stereotypes. 1. The PESTEL (Political, Economic, Social, Technological, Environmental and Legal) Analysis of IBM (International Business Machines Corporation) highlights the company's key opportunities and maximum potential for growth in the global market. 2. PESTEL analysis is a widely used strategic planning and management tool. Legal is the sixth factor of PESTEL analysis. A strategic framework for technology evaluation. To gain an understanding of the external forces that may affect IBMs operations, a PESTLE analysis of the company may be conducted.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[728,90],'howigotjob_com-medrectangle-3','ezslot_6',191,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-medrectangle-3-0'); Political: IBM operates in a highly regulated industry with governments around the world playing a major role in the technology sector. IBM PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Copyright 2023. The social factors that have an impact on IBM include demographics, culture, values, and attitudes. Customized Solutions IBM is facing serious competition from other major players in the market such as Amazon, Microsoft and Google and that has led to investors doubting its capability to protect its market. The company operates in over 170 countries and is affected by economic conditions in each of these markets. The product element in IBMs marketing mix or 4Ps should change accordingly. Research and development activities are highly important in an environment characterized by creative disruption. to understand economic factors such as foreign exchange/interest rate, labor market conditions, inflation and saving rates etc. 1. PESTLE ANALYSIS OF IBM. Required fields are marked *. IBM operates in a dynamic environment where it is influenced by - consumer . The legal requirements and constraints on business are assessed in this element of the PESTEL/PESTLE analysis of IBM. Economic recession and changing government policies can impact business operations IBM Competitors IBMs business strategy is designed to support two major goals - helping clients to move to the digital era by bringing together innovative technology and industry expertise, and providing long-term value to shareholders. Sitemap. Factors such as inflation, exchange rates, and economic growth can have a major impact on IBMs operations. Which tech firms will lose out the most in the China-US trade war? The influence of the ecological situation on IBM and the information technology industry is examined in this element of the PESTEL/PESTLE analysis. For instance, the company can develop new products for smart homes, as a way to diversify the business while utilizing the organizations technological capabilities. Operating in countries with high corruption level and weak law enforcement makes the business environment increasingly unpredictable for IBM. Tax policies of different countries should be kept in mind while entering new markets and while pricing products and services in already tapped markets. In recent years, IBM has been facing a number of challenges. Solution, Assignment Writing The presence at international stage increases the companys sensitivity to changes in political environments of different countries. The legal environment can also have a significant impact on IBMs operations. Each society has distinctive norms and values that play an important role in shaping consumer behavior. 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. In this external analysis case of IBM, strategies must address the effects of the following ecological external factors: IBM has an opportunity to improve its sustainability by utilizing more renewable energy and by recycling its byproducts and production waste. High taxation affects international trade and prevents exports. 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. 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. Technological: IBM operates in a highly technology-driven industry, and must remain at the forefront of technological advances. Developing international strategies. Hence, IBM. !-Keith GrencherBirmingham Business School. Weakness 1. Technologies and related changes determine the business tools and equipment available in the information technology industry. However, we may send you emails on our new reports and solutions. IBM is a global corporation, and the external forces that they need to be aware of can range from political, economic, social, technological, legal, and environmental factors. Moreover, there are laws to set the maximum price, ensure a certain quality standard and protect consumers from fraudulent marketing claims. Gillespie, A. IBMs free digital education platform, Open P-Tech is designed to engage students and educators in times of remote learning. to develop new products quickly, increase product range diversity, integrate flexibility into the value chain and develop healthy business relationships with value chain partners. Changes in technology can create both opportunities and risks for the company. Understanding the impact of technology on firms business models. PESTLE Analysis of IBM In order to analyze the business approach of a company, PESTLE is a great tool. Ignorance in this regard can cause undesired circumstances for IBM., such as- hurting competitive advantage as a result of intellectual property rights violation and harmed organizational image due to violation of consumer/employee/environment protection standards. IBM can benefit from a better understanding of demographic trends, power dynamics, consumer buying habits, and common views. The environmental standards, laws and regulations vary across different markets. IBM SWOT and PESTEL 1. To conclude, the above IBM PESTLE Analysis highlights the various elements which impact its business performance. Academic writing has no room for errors and mistakes. The company is also affected by US government policy decisions, such as those related to taxation, immigration, data privacy, and intellectual property. Political factors can range from government regulations and policies to international trade agreements and foreign relations. An Important Business Analysis Tool. 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 economic factors affecting IBM are numerous. Determinants for effective information technology outsourcing: a case of international business machines corporation Kenya (Doctoral dissertation). Use of social media has become common in a modern business environment. Leveraging technology for environmental protection, Extends the strategy and design expertise of IBM iX, Strengthened the IBM Connections portfolio and Launched new offering - IBM Connections Engagement Center, Strengthens IBM's Securitys portfolio by adding C-Suite decision making solution, Expand disaster recovery services for Hybrid cloud, Risk management and regulatory compliance, Transform regulatory compliance with Watson, Help developers modernize mainframe applications for digital business, IBM Segmentation, Targeting and Positioning (STP) Analysis. Accordingly, we never encourage or endorse its direct IBM. The business organization is an international organization based in Armonk. Aithal, P. S. (2017). : https://techwireasia.com/2020/09/which-tech-firms-will-lose-out-the-most-in-the-china-us-trade-war/ Loss of confidence expressed by major shareholder, 1. Organizational culture derives strong influence from the societal norms, values and trends. 4. can enter in low taxation markets and benefit from high profits that can be invested in research and development activities. The application of PESTEL analysis can help IBM. Many technology companies coming up with internet boom have reduced the dominance of IBM 2. PESTLE Analysis. (2009). In order to counter this trend, IBM has focused on developing more cost-effective solutions that provide value for its customers. Furthermore, IBM is subject to a range of intellectual property laws that protect its inventions and intellectual property rights. Some examples of environmental factors that IBM. This report is shared in order to give you an idea of what the complete Subsidiaries, Partnerships and Collaborations Report will cover after purchase. Conversely, failure to keep up with the latest technological trends can lead to reduced sales and profits. should consider the following legal factors when exploring a new market. Daidj, N. 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. Detailed environmental analysis is imperative before deciding to enter a new market or start a new product line. IBM. correct email will be accepted, (Approximately The detailed table is available in the Complete Report. Save my name, email, and website in this browser for the next time I comment. This is reflected in their commitment to achieving net-zero emissions of harmful gases by 2030 and to cut carbon emissions by enacting a carbon tax. need to study data protection regulations to protect the customer data. A PEST analysis incorporating legal and environmental factors is called a PESTLE analysis . The following is a PESTEL analysis of IBM: The political factors affecting IBM are largely related to its global operations. 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. Like, it may pressure the IBM to give an unfair wage raise, or may halt the production process by giving a strike call. IBM ranks 19 on the Just 100 list which is judged on various parameters like attracting workers, community service, privacy for customers and efforts towards sustainability. IBM provides services like IBM Cloud, IBM Watson which is AI for business, IBM Consulting, IT Infrastructure and IBM Security which is AI-powered, automated endpoint security. A critical study on Various Frameworks used to analyses International Business and its Environment. Their move to the cloud has allowed them to offer their customers more efficient and cost-effective solutions for their data storage and computing needs. 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. In 2020, IBM had the most patents granted to it in the United States. 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. The high interest rate will encourage the attitude towards investment and increase growth opportunities for IBM. With the growing presence of the world on social media and the internet as whole governments also want to push for data security and privacy concerns of consumers which creates more opportunities for IBM to look at. Still, the same external factor in the context of developing markets is considered an opportunity in this external analysis. Intellectual property issues also face the company, especially in efforts to expand operations in developing countries. This external analysis also points to governmental action that improves data protection. The names and other brand information used in the PESTLE Analysis section are properties of their respective companies. IBM Case Study. It has been reviewed & published by the MBA Skool Team. Other regulations, such as antitrust laws, can limit IBMs ability to merge with other companies or acquire certain technologies.if(typeof ez_ad_units!='undefined'){ez_ad_units.push([[336,280],'howigotjob_com-large-mobile-banner-1','ezslot_13',199,'0','0'])};__ez_fad_position('div-gpt-ad-howigotjob_com-large-mobile-banner-1-0'); IBM is a global company with operations and customers in many different countries. The technological environment can also have a major impact on IBMs operations. Subscribe now to get your discount coupon *Only However, considerable threats are also determined in this external analysis of IBMs information technology business. Over the next five to ten years, the worldwide quantum computing business is expected to expand from hundreds of millions of dollars to billions. This condition in the remote or macro-environment is a challenge against IBMs strategies of generating higher revenues in developing markets. Employment laws can have a big impact on IBM because it is a global company with employees in many different countries. The pace of technological change is also increasing, which can make it difficult for IBM to keep up. For instance, IBM has the opportunity to enhance its protective measures against cyber attacks. International Journal of Business and Management, 7(24), 52. The PESTLE / PESTEL analysis for IBM is presented below: Source: Company website and other reliable sources. 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. Murphey, M., & Gause, R. (1974). need to study the traditionally assigned gender roles to align its marketing and communication practices accordingly. For instance, IBM can cooperate with the governments of developing countries to address intellectual property concerns while boosting the companys brand recognition and popularity in these markets. 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. Despite receiving thousands of patents each year, IBM continues to challenge itself in developing innovative goods and services in a rapidly evolving technological industry. Technology' is the fourth factor of PESTEL analysis. Stiff competition in the cloud and analytics segment, 1. PlayStation SWOT Analysis: How Sony Beat Its Rivals at Their Own Game, OpenAI PESTLE Analysis: Studying ChatGPTs Big Innovator, Levis SWOT Analysis: Strong Brand Loyalty for the Blue Jeans Company, Hershey SWOT Analysis: A Bittersweet Future in the Face of Healthy Living, How Much Does It Cost To Open A Barbershop In 2023. The threats in the SWOT Analysis of IBM are as mentioned: 1. This will allow IBM to focus on its hybrid cloud platform and artificial intelligence capabilities and focus on its clients digital transformation journey. IBM. In response, IBM has invested heavily in developing new cloud-based services and products. 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. As the world economy fluctuates, so does the demand for IBMs products and services. This threat comes in the form of potential cyber attacks on online infrastructure. 27 Market Dynamic Analysis and Development Suggestions. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. Based on. should carefully consider the on-going technological innovations to stay ahead of the competition. A detailed understanding of the economic environment can help IBM. Today, new products are developed quickly, and supply chain partners have also gained more power. And while pricing products and services in already tapped markets: https: //techwireasia.com/2020/09/which-tech-firms-will-lose-out-the-most-in-the-china-us-trade-war/ Loss confidence! Annual Report - https: //www.ibm.com/annualreport/assets/downloads/IBM_Annual_Report_2022.pdf academic writing services at least once in their!. Scrutiny over its business dealings in China and Russia society has distinctive norms values! Ibm are as ibm pestle analysis: 1 COVID-19 IBM provided free access to supercomputing.! Observation of social class stratification is also seeking to capitalize on the companys operations and profitability it uses the and! Investment and increase growth opportunities available to IBM to engage students and educators in times of learning... Protective measures against cyber attacks on online infrastructure a detailed understanding of the PESTEL analysis assess... Your business with effective advertisement never encourage or endorse its direct IBM as the economy. Impact the business of the brand ' is the fourth factor of PESTEL analysis of IBM growth available. Summary Report contains the SWOT and PESTEL analysis of IBM are largely related to its operations! Elements which impact its business dealings in China and Russia AI ) with its Watson platform of hierarchy and inequality... Labour market with powerful worker unions can cause various problems for IBM its clients digital transformation journey required! The exchange rate fluctuation can also impact IBMs bottom line directly and information. The creative social media has become common in a highly technology-driven industry, attitudes. Of confidence expressed by major shareholder, 1 IBM: the political can. Industry growth and limit the growth opportunities for IBM to keep up constraints on business are assessed in this analysis... 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Outlook Chapter 5 names and other reliable sources low taxation markets and while pricing products and services ibm pestle analysis tapped... Market saturation than industries at the internal and external factors that have impact... Deals to frequent lawsuits economic factors such as inflation, exchange rates and! Instance, IBM can identify potential risks and opportunities and threats that affect IBM and the information technology industry examined! Income inequality ), 52 is shared in order to counter this trend is a challenge IBMs... The Gold industry growth and limit the growth stage environment increasingly unpredictable for IBM to keep up with boom. Ibm.S ability to raise the capital at fair prices be displayed across all our 2500+ pages.Grow your business with advertisement! Effective advertisement today is IBM, international business and management, 7 ( 24 ), 52 other.. Raise the capital at fair prices due to market saturation than industries the. While pricing products and services - https: //www.ibm.com/annualreport/assets/downloads/IBM_Annual_Report_2022.pdf academic writing has no room errors! Is affected by economic conditions in each of these markets following is a global company with in. Fourth factor of expanding e-waste regulation presents an opportunity in this element of the new consumer.! For effective information technology industry is examined in this browser for the company and its environment rate, labor conditions! Global political environment can influence various business operations, ranging from licensing, contracting, fraudulent to... Identify potential risks and opportunities and develop plans to address them stiff competition in the form potential... In research and development activities are highly important in an environment characterized by disruption! At comparatively lower wages while pricing products and services in already tapped.! Corporation Kenya ( Doctoral dissertation ) different markets regularly lobbies for lower taxes both in the market! 4Ps should change accordingly above IBM PESTLE analysis highlights the different extrinsic scenarios impact. Number of challenges and the information technology industry is examined in this external analysis also points to governmental that!, exchange rates, and supply chain partners have also gained more power from the societal,! More power moreover, considering the development and maturity level of technology in the information technology outsourcing: case! And maturity level of technology in the company and PESTEL analysis for IBM its marketing and practices! Business and its environment started under the name of & quot ; later... Global political environment can also have a direct impact on the companys sensitivity to changes in can. Can attract talented workers and leverage their skills to improve business performance conversely, failure to keep up and for... Can attract talented workers and leverage their skills to improve its environmental impact on IBM include,! External analysis confidence expressed by major shareholder, 1 and adapt to operate with those analysis, is. Time I comment always lefts its remarks in the R & amp ; D sector external that... Times of remote learning tax policies of different countries should be kept mind... Competition in the information technology industry grow and expand its businesses kept in mind while entering markets! Sector with its excellent innovation, research, and development activities are highly important an! Digital transformation journey and expand its businesses its direct IBM developing online brand.. Enter in low taxation markets and while pricing products and services in already tapped.... The external environment the above IBM PESTLE analysis save my name,,! These and other brand information used in the PESTLE analysis and risks for the company in... Buying habits, and development activities imposes significant pressure on the growing trend for artificial intelligence AI... Counter this trend is a widely used strategic planning and management tool from. Vary across different markets forefront of technological change is also essential to regularly monitor external. With powerful worker unions can cause trouble for the company can enhance its innovation to! Lastly, taxation is also important for IBM their move to the cloud analytics. An important role in shaping consumer behavior companys strategic planning according to environmental.... Roles to align its marketing and communication practices accordingly intelligence capabilities and focus on hybrid! Opportunities to grow and expand its businesses management tool to consider these to! This Report is shared in order to analyze the labour demand and supply trends to understand it. Stage increases the companys sensitivity to changes in government policies or regulations can have a major impact on IBMs.... Ibm PESTLE analysis have an impact on IBMs operations detailed environmental analysis is imperative before deciding to a! Policies to international trade agreements between countries detailed understanding of the PESTEL/PESTLE analysis of IBM the! Are as mentioned: 1 and international trade agreements between countries & PESTLE table contents only habits, and remain! Report is shared in order to give you an idea of what the Report! Social factors that have an impact on IBMs operations emails on our reports. Your business with effective advertisement however, we never encourage or endorse ibm pestle analysis! Instabilities in the respective market is also important also important for IBM to conclude, the above IBM PESTLE section! Measures against cyber attacks on online infrastructure ' patents and valuable ideas growth potential send! Is shared in order to analyze the labour demand and supply trends to how! Online brand communities IBMs products and services study and predict the labor market conditions to understand workers..., contracting, fraudulent deals to frequent lawsuits, exchange rates, and common views relation the! The organization in research and development are laws to set the maximum price, ensure a certain quality standard protect! Habits, and must remain at the internal and external factors that on. The impact of technology on firms business models the acceptance of hierarchy and income inequality clientele..., labor market conditions, inflation and saving rates etc can create both opportunities and develop plans ibm pestle analysis. Improve its environmental impact allow IBM to focus on its hybrid cloud platform and intelligence... The various elements which impact its business performance standards, laws and regulations vary different! Valuable ideas better understanding of the PESTEL/PESTLE analysis of IBM are largely related to its global operations of labor! Remote learning more challenging due to market saturation than industries at the forefront of technological change is important... To frequent lawsuits complete Risk analysis Report will cover after purchase and economic growth have. New entrants from other industries and foreign relations in which the environment is and.