HOME ASSIGNMENT 1(STRATEGIC PROFILE BUILDING)-TASK 1

COMPANY NAME-IBM
-S VERGIN IRUTHAYA PREETHI
HISTORY:
International Business Machines (IBM), nicknamed "Big Blue", is a multinational computer
technology and IT consulting corporation headquartered in Armonk, New York, United States.
IBM originated from the bringing together of several companies that worked to automate
routine business transactions, including the first companies to build punched card based data
tabulating machines and to build time clocks. In 1911, these companies were amalgamated into
the Computing-Tabulating-Recording Company (CTR).
Thomas J. Watson (1874-1956) joined the company in 1914 as General Manager and became
its President in 1915. In 1924 the company changed its name to "International Business
Machines." IBM expanded into electric typewriters and other office machines. Watson was a
salesman and concentrated on building a highly motivated, very well paid sales force that could
craft solutions for clients unfamiliar with the latest technology. His motto was "THINK".
Customers were advised to not "fold, spindle, or mutilate" the cardboard cards. IBM's first
experiments with computers in the 1940s and 1950s were modest advances on the card-based
system. Its great breakthrough came in the 1960s with its System/360 family of mainframe
computers. IBM offered a full range of hardware, software, and service agreements, so that
users, as their needs grew, would stay with "Big Blue." Since most software was custom-
written by in-house programmers and would run on only one brand of computers, it was too
expensive to switch brands. Brushing off clone makers, and facing down a federal anti-trust
suit, the giant sold reputation and security as well as hardware and was the most admired
American corporation of the 1970s and 1980s.
The late 1980s and early 1990s were difficult for IBM—losses in 1993 exceeded $8 billion—
as the mainframe giant failed to adjust quickly enough to the personal computer revolution.
Desktop machines had the power needed and were vastly easier for both users and managers
than multi-million-dollar mainframes. IBM did introduce a popular line of microcomputers—
but it was too popular. Clone makers undersold IBM, while the profits went to chip makers
like Intel or software houses like Microsoft.
After a series of reorganizations, IBM remains one of the world's largest computer companies
and systems integrators. With over 400,000 employees worldwide as of 2014, IBM holds more
patents than any other U.S. based Technology Company and has twelve research laboratories
worldwide. The company has scientists, engineers, consultants, and sales professionals in over
175 countries.IBM employees have earned five Nobel Prizes, four Turing Awards,
five National Medals of Technology, and five National Medals of Science.
STRATEGIC EVOLUTION OF COMPANY
In 1996, Louis Gerstner, then president and CEO of IBM, set his sights on radically revamping
the company’s existing strategic planning and execution practices and policies. At that time,
IBM’s corporate strategy processes resembled those of most corporations, with several annual
 planning activities. In overhauling the program over the next several years, IBM’s executives
and marketing leaders concentrated on five critical objectives:
 Designing a strategic issues review process that focuses outwardly on economic and
technology issues rather than on internal organizational concerns
 Ensuring that strategic planners focus directly on the critical implications, risks, and trade-offs
inherent in strategic alternatives
 Structuring an ongoing process to keep top executives focused regularly on fundamental
strategic challenges and opportunities and not just on operational issues
 Connecting strategic planning directly to resource allocation decisions, thereby keeping
implementation at the centre of the planning process
 Promoting widespread support and involvement in the entire process
Today, strategic planning at IBM looks quite different than it did in the late 1990s. A
continuous strategic planning process involves ongoing review of major issues and executive
decision making on a twice-monthly basis. “Deep dive” research initiatives enable the firm to
fully explore a new challenge or opportunity, develop a strategy, and allocate resources within
30-90 days. With economic (and political) upheaval, technical innovation, and competitive
initiatives happening rather more frequently than annual strategic reviews, IBM’s continuous
strategy evolution enables the firm to act and react more quickly than most to critical market
challenges and opportunities.
INTENDED STRATEGIES FOLLOWED:
An intended strategy is the strategy that an organization hopes to execute. Intended strategies
are usually described in detail within an organization’s strategic plan.
 IBM, having its roots in one of the fastest growing precinct of the current era,
computers and IT services and consultation, has transcended some of other big
players of the arena. In 2011, IBM excelled Microsoft with a closing value of $214
billion leaving behind the technology giant at $213.2 billion. A year later, IBM
acquired Texas Memory Systems so to expand its technology department further
while enhancing the quality and the quantity of it s production.
 IBM has a unique way of employee management. It was the first company to start
group life insurance in the year 1934 along with survivor benefits in 1935 and paid
vacations in 1937. Although controversial, IBM made sure its same-sex employees
are dealt with equality on the grounds of health benefits and anti-discrimination
laws. In 2003, Human Rights Campaign voted IBM for its same-sex friendliness
and anti-discriminative practices.
 IBM places emphasis on the strong partnership
 IBM partnered with Twitter which helps in integrating complex systems and data
to make better decisions.
 IBM mobile first for ioS connects users to big data and analytics on their ioS
devices.
EMERGENT STRATEGIES FOLLOWED:
An emergent strategy is an unplanned strategy that arises in response to unexpected
opportunities and challenges. Emergent strategies can also lead to tremendous success.
 Many new strategies were adopted by IBM in the year 2020 due to the alarming
challenge (Covid -19)
 Transforming industries and profession with data.IBM Watson is a new class of
advanced analytics which is an AI system with same learning process as humans and is
applied in 17 different industries and cognitive computing for apps.
 More than 4 billion have invested in SAAS .IBM made partnership with SAP to deliver
enterprise application as service in cloud.
 Reimagining work through mobile and social technologies.IBM interactive experience
is the biggest digital agency .Strategic partnership with apple for devolving business
apps.
 Creating a new infrastructure for a new era, Internet of things transformation solutions
combines clouds and Watson’s which mainly focuses on Open innovation. Reimagined
the mainframe for their tremendous growth of mobile workloads.
 Rethinking the challenge of security.10 global security operation centers manages &
monitors 15 billion events daily.IBM follows a mixed strategy

IBM’s global strategy is based on three pillars: cloud, data and engagement. Closely watched
by the global investment community, the IT sector, and IBM’s 431,000 employees, IBM’s
strategy has its fans and detractors – but each of the three pillars says something about global
growth and competition in the 21st century.

2. VISION, MISSION AND CORE VALUES:

MISSION STATEMENT:
To lead in the creation, development and manufacture of the industry’s most advanced
information technologies, including computer systems, software, networking systems, storage
devices and microelectronics. And our worldwide network of IBM solutions and services
professionals translates these advanced technologies into business value for our customers. We
translate these advanced technologies into value for our customers through our professional
solutions, services and consulting businesses worldwide.

VISION STATEMENT:
To be the world’s most successful and important information technology company. Successful
in helping out customers apply technology to solve their problems. Successful in introducing
 this extraordinary technology to new customers. Important, because we will continue to be the
basic resource of much of what is invested in this industry?

CORE VALUE:
 Dedication to every client’s success
 Innovation that matters, for our company and for the world
 Trust and personal responsibility in all relationships

3. PREMILINARY ANALYSIS OF RESOURCES AND CAPABILITIES:

KEY RESOURCES:

IBM operates numerous research laboratories worldwide that are all bundled under IBM
Research.

Major campus installations, science centres and a Linux Technology Centre make the spine of
the company’s development core with a collective working force of 435,000 employees
worldwide, making it the second largest US firm in terms of workforce.

CAPABILITIES:

IBM was transformed from a company that primarily manufactured mainframes to a company
that offered complete IT solutions. The company was able to change its focus from being
product centric to being customer centric. IBM realized the need to continuously reinvent the
business model of a company amidst rising competition and changes in the business
environment. Unnecessary costs were cut down in the process and many new relevant
technological innovations led the way for a successful turnaround for IBM. Other companies
can greatly benefit by reviewing IBM’s strategic and operational planning and in their use of
technology. Such lessons would help any company in IBM's position thwart competitive forces
in today's IT market, facilitating better management techniques, inventory control & operation.

Financial performance and the availability of key resources are both drivers and enablers of
business model innovation. In the technology services industry, IBM has a track record of using
its financial strength to invest heavily in research and business model transformation during
periods of economic downturn. By investing in research and development during the depths of
the Great Depression in the 1930s, IBM was ready when the recovery began.13 similarly, today
IBM is investing heavily in the development of “Smarter Planet” initiatives based on its view
that virtually every process, system and infrastructure can be instrumented, interconnected and
infused with intelligence. This opens up new market opportunities for new partnerships
&business
4.CEO:
Arvind Krishna (born 1962) is an Indian-American business executive. He is the chief
executive officer (CEO) of IBM. Krishna began his career at IBM (almost 30 years long) as an
engineer in IBM Research, was promoted to senior vice president in 2015, and was promoted
to CEO in April 2020.In 2018, he led IBM's acquisition of Red Hat for $34 billion, which is
the largest software company acquisition in history. On his first day as CEO, Krishna wrote to
IBM staff, "I believe we can make IBM the most trusted technology partner of the 21st
century.Character is of the utmost importance.

LEADERSHIP CAPABILITIES:

Krishna joined IBM in 1990, rising to become senior vice president for IBM's cloud and
cognitive software division. He has made scientific contributions in a number of technical
fields, including wireless networking, security, systems, and databases. He has also led the
building and expansion of new markets for IBM in artificial intelligence, cloud, quantum
computing, and blockchain. He led IBM's 2018 acquisition of Red Hat for $34 billion.

He was appointed to become IBM CEO on January 31, 2020, succeeding Ginni Rometty who
had served as CEO since 2012.He joined Satya Nadella, Shantanu Narayen, and Sundar
Pichai as an Indian CEO of a major United States technology company.

5. BUSINESS MODEL:
The business model of IBM or International Business Machines Corporation revolves around
Cloud computing, Artificial intelligence, Computer hardware, and Computer software. There
are so many different business offerings that are provided by the company and hence the service
segments of the company are also on the increase too. The IBM Company provides lot of
services to the clients which make it reliable and dependable at the same time. Ever since its
existence, the company has been widely adopted in different countries and has about 175
different branches all over the world. There are also about 400,000 employees who are
currently working in the company.
CUSTOMER SEGMENTS:
IBM serves two customer segments: large enterprises looking to invest in virtualization, cloud
or other software or hardware solutions and services to streamline corporate operations
and end-users interested in personal computers and mobile applications.

VALUE PROPOSITION:

IBM has always been characterized by a powerful drive for innovation and development and
these continue to make the larger part of its value propositions. The company actively engages
in research in the fields of nanotechnology and mainframe and personal computers with recent
years seeing it slowly expand into digital data management, cloud services and virtualization.

It offers corporate clients high-value solutions based on its working model of integrating
technology and business model innovation to deliver scalable solutions. IBM also provides IT
consulting and implementation services for the design, setup, management and maintenance of
cross-industry and industry-specific processes.

CHANNELS:
After consolidating its channel sales and marketing groups for all business units IBM has
announced a single channel team to better support its business partner network. The One
Channel Team improves communication with clients who are now given a single point of
contact within the global giant. A single interface platform with increased functionality is also
available through the company’s web portal.

CUSTOMER RELATIONSHIP:

IBM customer relationships are primarily self-service, although as a hardware and software
developer there is a midmarket channel as well as one for larger enterprises. They have a
designated Marketplace on their official web page, which is easy to navigate and can be used
by both individuals and businesses to select the products and services that meet their needs and
requirements.

KEY ACTIVITIES:

IBM focuses on the development and distribution of hardware, software, business consulting
and IT services at enterprise-level. In recent years it has shifted its focus towards capitalizing
on business intelligence, data analytics, business continuity, security, cloud computing,
virtualization and green solutions as well as semiconductor manufacturing.

KEY PARTNERS:

In recent years IBM has struck a number of high-profile partnerships with other global
companies, such as Apple Inc. in mobile enterprise and Twitter for the integration of social
media data and cloud-based analytics. The company has been involved in a lot of mergers and
acquisitions, actively reshaping and changing the structure of its divisions through the
formation of new units to position itself better within a global context.

KEY RESOURCES:

IBM operates numerous research laboratories worldwide that are all bundled under IBM
Research. Major campus installations, science centres and a Linux Technology Centre make
the spine of the company’s development core with a collective working force of 435,000
employees worldwide, making it the second largest US firm in terms of workforce.

COST STRUCTURE:
IBM continuously directs investments into its growth initiatives in order to improve cost
structure. Its main goal is to focus on more profitable services and phase out products and
services that are no longer generating public interest. This has allowed the company to continue
to operate profitably despite seeing a decline in revenues in recent years. It currently combines
an increase in investments in cloud and analytics with leveraging lower-cost talent.IBM’s cost
structure is very much driven by investing into its people and customer acquisition.
Additionally, the shift towards service and app development has resulted in increasingly lower
qualified service employees that are cheaper to retain than skilled resources.

REVENUE STREAMS:

Despite a thirteenth straight decline in sales, IBM continues to invest in cloud technology and
data analytics as strategic imperatives. The company’s software business is responsible for a
big part of the drop in sales while the aforementioned categories contributed $25 billion and
represented 27% of IBM’s total revenue in 2014 alone. IBM investors are reassured with focus
on new growth areas will offset consulting business losses. Under Rometty’s leadership IBM
has shifted focus towards its membership-based cloud and data services, which it markets
through its web platform. With over 1,500 clients that consist of small and medium-sized
businesses worldwide – a significant portion of the company’s earnings are contributed to
service and maintenance fees. IBM’s service packages are currently sold in an annual
subscription format.

ASYN.HOME ASSIGNMENT 3(STRATEGIC PROFILE BUILDING)-

TASK 2
1. CRITICAL RESOURCES:
IBM operates numerous research laboratories worldwide that are all bundled under IBM
Research. Major campus installations, science centres and a Linux Technology Centre make
the spine of the company’s development core with a collective working force of 435,000
employees worldwide, making it the second largest US firm in terms of workforce.

CAPABILITIES OF CRITICAL RESOURCES:

 Global presence

 Brand image/Equity

 Technology

 HRM

 Customer Loyalty
Global presence:

IBM is operating globally across 177 countries. Its global presence is a major capability and a
sign of its success as well.

Brand image & Equity:

Brand image and brand equity that the brand has built are also important capabilities. Based on
its capabilities, the brand has built very high level of trust and that facilitates business success.

Technological capabilities:

Its technological capabilities are at the core of its business. They are also its main source of
competitive advantage and distinguish IBM from the crowd of brands.

HRM & culture:

IBM has maintained heavy focus on HRM and for having managed an excellent business and
organisational culture.

Customer loyalty:

Due to its excellent products and services, IBM has also managed very high level of customer
loyalty.

VRIO FRAMEWORK:

Resources/capabilities Valuable Rare Inimitable Exploited Implications

Sustained
Culture Yes Yes Yes Yes
Competitive
Advantage
Brand Image/equity Yes Yes Yes Yes Competitive
advantage
Global Presence Yes No No Yes Temporary advantage

Technology Yes Yes Yes Yes Competitive

advantage
Knowledge Yes No No Yes Competitive Parity

HRM & Culture Yes No No Yes Temporary advantage

Customer loyalty Yes No No Yes Temporary advantage

2. VALUE PROPOSITION
IBM has always been characterized by a powerful drive for innovation and development and
these continue to make the larger part of its value propositions. The company actively engages
in research in the fields of nanotechnology and mainframe and personal computers with recent
years seeing it slowly expand into digital data management, cloud services and virtualization.

It offers corporate clients high-value solutions based on its working model of integrating
technology and business model innovation to deliver scalable solutions. IBM also provides IT
consulting and implementation services for the design, setup, management and maintenance of
cross-industry and industry-specific processes.

PRODUCT: IBM WATSON

3. PESTEL ANALYSIS:
IBM’s office building in Bratislava, Slovakia. A PESTEL/PESTLE analysis of IBM reflects
strategic opportunities for expansion and competitiveness based on external factors in the
remote or macro-environment of the information technology industry.
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. 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. IBM, also known as Big Blue, succeeds by developing competencies to exploit the
opportunities and overcome the threats based on these external factors. For example, the
company can benefit from growth opportunities in the remote or macro-environment through
the use of high economies of scale, which is one of the business strengths identified in
the SWOT Analysis of IBM. Thus, this external analysis case helps determine the strategic
options for the company. Addressing the external factors increases IBM’s rate of success in
boosting the performance of its global business.

Managers can use the results of this PESTEL/PESTLE analysis of IBM as basis for developing
strategies and programs to strengthen the business. For example, the external factors in the
technological aspect of the external analysis can guide the company’s innovation programs.
The aim should be to maximize stability and growth while protecting the business from threats
in the remote or macro-environment. It is also essential to regularly monitor the external
environment to adjust the company’s strategic planning according to environmental changes.
A holistic approach to the threats and opportunities shown in this PESTEL/PESTLE analysis
can empower IBM in its growth and expansion efforts in the information technology industry.

Political
 Governments’ move for digitization.
 Political support for e-technologies .
 Improving governmental efforts for
data protection.
Economical
 Stable economic growth in major
markets
 Rapid growth of developing markets
 Rising demand for online products

Social Technological
 Rising purchasing capacities  Technological integration in various
worldwide industries and markets
 Rising use of customer service in  Cybercrime
evaluating product quality and  Expanding global Internet
business quality accessibility
 Increasing use of online services

Legal Environmental
 Improving overall intellectual  Increasing availability of renewable
property protections energy
 Weak legal protection for intellectual  Increasing availability of recycling
property in developing markets programs
 Expanding e-waste regulation  Rising interest for business
sustainability programs
4. SWOT ANALYSIS:

STRENGTH WEAKNESS

High-value brand High-value brand

Expertise in production processes and Imitable products
materials management
Shrinking product mix
Extensive intellectual property portfolio
Low degree of diversification
High economies of scale

OPPORTUNITY THREATS

Business diversification in various

industries Imitation of products

Alliances with firms from different Competition

industries or markets Cybercrime
Rapid innovation of new products

5. COMPETITOR ANALYSIS:

ACCENTURE

Accenture plc. is a multinational professional services company. A Fortune Global 500

company, it reported revenues of $43.2 billion in 2019 and had 492,000 employees, serving
clients in more than 120 countries. In 2015, the company had about 150,000 employees in
India, 48,000 in the US, and 50,000 in the Philippines. Accenture's current clients include 91
of the Fortune Global 100 and more than three-quarters of the Fortune Global 500.

SWOT ANALYSIS

Strengths

 World’s largest consulting firm: In terms of revenue it’s the world’s largest consulting
firm which mainly focuses on IT and business consultancy. It has fantastic business
ethics & uncompromising standards for high performance.
 Strong Clientele: It has a large client base with some top notch companies having
Accenture as their consultants. Nearly 90 out of the fortune top 100 companies & more
than three quarters of fortune global 500 companies have Accenture as a consulting
firm.
 Service Delivery Network: Accenture have global service delivery network with
presence in more than 200 cities, 56 countries & employing 390,000 passionate
employees continuously working to give optimum service delivery to end customers.
  Client Driven processes: Strong business relations & client driven approach by
Accenture helps them in creating industry based, sustainable value for their consulting
partners.
 Continuous improvement: Like Kaizen of Toyota, Accenture is always looking towards
improving its capabilities, hiring better and more talented manpower, thereby matching
their promise to the end customers.
 Diverse capabilities: With its five operating groups namely communications, Media &
technology, financial services, health &public services and product resources it has
created diverse capabilities within its team. Dedicated and trained manpower for each
vertical is what differentiates Accenture from the rest.
 Expertise: With its client base stretching out from health care to automobile to IT
services, Accenture has a lot of experience and the talent behind it to get things done.
Hence, Accenture has become the “specialist” or “experts” across different industries.

Weaknesses

 Lack of coordination: Accenture has 19 business units collaboratively working with the
clients and with each other. This leads to conflicts due to lack of internal coordination.
 Dependency on its consulting business: Although its business is in management
consulting, technology & BPO, but the consulting part forms the major source of
revenue for Accenture. This can be dangerous for the company in the long run because
running such a large operation requires that the firm be ready for bad financial days.

Opportunities

 Expansion of business: By targeting small & mid-sized projects & expanding to other
developing economies (Market development), Accenture can increase its revenue even
more.
 Acquisitions: Accenture recently acquired ‘Gaspo”, an analytics solution provider
based out of Brazil. It also acquired Agilex technologies, which is a digital & IT
services provider for U.S Govt. agencies. Such acquisitions can increase the analytic
strength of Accenture thereby helping it in expansion.
 Focusing on other businesses: More focus on technology & BPO, and making the
revenue equivalent to consulting, can help the firm to penetrate the market even better.
Also, this diversification will provide a cushion during harsh financial times.

Threats

 Competition: Tough competition from IT giants like IBM, Capgemeni, and Infosys is
the area of concern for the company.
 Bad financial times: During the recession period it was tough for the company because
of over dependability on premium clients. The large clients were the first ones which
got affected badly by the financial downturn. And hence the revenue drive to Accenture
dropped badly.
HEWLETT PACKARD

The Hewlett Packard Enterprise Company is an American multinational enterprise information

technology company based in San Jose, California, founded on November 1, 2015 as part of
splitting of the Hewlett-Packard Company. HPE is a business-focused organization with two
divisions: Enterprise Group, which works in servers, storage, networking, consulting and
support, and Financial Services. On October 31, HPE reported FY2019 annual revenue of
$29.135 billion, down 5.57% from the prior year period.
The split was structured so that the former Hewlett-Packard Company would change its name
to HP Inc. and spin off Hewlett Packard Enterprise as a newly created company. HP Inc.
retained the old HP's personal computer and printing business, as well as its stock-price history
and original NYSE ticker symbol for Hewlett-Packard; Enterprise trades under its own ticker
symbol: HPE. According to notes from 2015, HPE's revenue was slightly less than that of HP
Inc. In 2017, it spun off its Enterprise Services business and merged it with Computer Sciences
Corporation to become DXC Technology. It also spun off its software business and merged it
with Micro Focus. HPE ranked No. 107 in the 2018 Fortune 500 list of the largest United States
corporations by total revenue.
SWOT ANALYSIS:
Strength

 Brand Valuation: Hewlett Packard has a fantastic brand equity and its brand valuation
is a whopping 19.3 billion dollars, much ahed then many of the players in the consumer
durable segment. HP ranks 50th amongst the top 100 brands around the world.

 Sector Rank: Hewlett Packard is ranked 10th in the IT industry which has the likes
of Apple, Facebook and Google. This shows the fantastic popularity of Hewlett
Packard.

 Production excellence: HP ships two personal computers and two printers every second.
This shows its dominance in this sector. They hold the second position in the world for
shipping PC equipment. HP had a market share of nearly 20%. In the printer segment,
they hold a market share of 40.5%.

 R&D: They spend highly on research to stay ahead of the technology curve. HP Labs
research is focused on key growth areas that include advancing technologies like
sensing, natural language detection, audio/video analytics, and new information
displays.

 Differentiated products: Over a period of time, Hewlett Packard has produced products
which are differentiated and well advanced as compared to competitors. The latest HP
Spectre is a fantastic piece of equipment for a laptop. Similarly, they have bulk printers
and bulk Xerox machines which are excellent in performance and durability.

 Marketing: A company does not reach this level of brand equity without a smart
investment in marketing. Hewlett Packard is known to be a smart marketer and its ads
are always colourful, showing the capabilities of its printer and giving off an elegance
of its own.
Weakness

 Declining Demand: The demand for printing systems and personal computers have
decreased by 8.3% during FY 2015. Net revenue declined by a 17% in desktop PCs,
2% in notebook PCs, 9% in workstations and 8% in other net revenue. Smartphones are
fast overtaking laptops and Hewlett Packard is far behind the others in Smartphones.

 Weak Financials: they recorded a decrease of 7.3% in revenues compared to FY 2014.

The operating profits also decreased by 23.9% compared to FY 2014.

 After sales service in computers: HP’s laptop and desktops are known to have poor after
sales service especially in emerging countries.

Opportunity

 3D printing: According to estimates 3D printing technologies are expected to take high

growth. The 3D market will reach a value of $30.2 billion by 2022 with a CAGR of
28.5%. Worldwide shipments of 3D printers grew by 103% in 2016.

 Managed Print Services (MPS) Market: The MPS market is forecasted to become $94.9
billion by 2024 from $26.2 billion in 2015 at a CAGR of 14.8%.

 Electronics Market: The performance of electronics market is going to increase with a

CAGR of 2.7% till 2019. The value is expected to become $299 billion by 2019.

Threats

 Product Challenges: The growth of personal computer product line has slowed down.
The printing line also has many competitors and is facing a growth decline.

 Competition: Competition in the personal systems segment are Lenovo, Dell, Acer,
ASUSTeK, Apple, Toshiba, and Samsung and In the printing segment are Canon,
Lexmark, Xerox, Seiko Epson, Ricoh, Samsung and Brother Industries.

CAPGEMINI

Capgemini SE is a French multinational corporation that provides consulting, technology,

professional, and outsourcing services. It is headquartered in Paris, France. Capgemini has over
270,000 employees in over 50 countries, of whom nearly 120,000 are in India.

SWOT ANALYSIS

Strengths

 Technology – The main strength of the company is providing the concrete result for
people who are technology-oriented. It provides the right solutions to bridge IT and
business. It works with diversified technology to meet the business goals.
  Strong presence in Europe – Capgemini has a strong presence in the European
market. This enables the expansion of the right shoe model. Capgemini’srightshore
model has its main focus on cost reduction, business value, and the ability to
outsource IT operations.
 Strong leadership and solid values – Capgemini’s strong leadership and solid values
are the foundation of their business. The company’s core values – boldness,
honesty, freedom, trust, team spirit, modesty, and fun provides the basis of rules of
conduct within the team.
 Responsible Business Practices – Capgemini’s code of ethics is more than the
abstract ideas. It is a formalization of the longstanding commitment
to ethical behaviour that shapes the business practices at each level of the company.
 Employee strength – The Company has about 145,000 employees working in their
organization that has a global presence in about 40 countries.
 Domain expertise – Capgemini has a strong domain experience in the Government,
manufacturing, energy and utilities, financial, and telecom expertise.
 Strong brand portfolio – Capgemini has invested a lot to build a strong
brand portfolio over the years. This is important when it expands to new categories.

Weaknesses

 Dependence on consulting – Capgemini has a high dependence on consulting. It is

not so popular with regards to the service project. Their capacity to deal with the
service project is a little less as compared to its competitors.
 Poor marketing – Even though the product becomes a hit with respect to sales terms,
its position and selling proposition is not defined clearly. This is a major drawback
from its competitors.
 No scope apart from core business – Although Capgemini is a leading organization
in IT segment; it has seen a lot of challenges in moving towards other domain by
having its current culture.

Opportunities

 Business opportunity – As of now, Capgemini plays an important role in today’s

business. Their main domains like networking, cloud computing which is the most
prominent area for growth, see an opportunity for Capgemini to shine.
 Government green drive – The government green drive is a great opportunity for
procurement of the products of Capgemini by the state and federal government
contractors.
 Lower inflation rate – The low inflation rate brings more stability in the market that
enables credit at lower interest rate to the Capgemini’s customers.
 Customers from online – Over the years, Capgemini has invested a huge amount
into the online platform. This has provided a new channel for sales. This helps them
to further grow their business.

Threats

 European market presence – Having a strong presence in the European market is a

big threat as they are undergoing economic disorder. This is a limitation in their
business growth.
 Change of customer behaviour – Change of customer behaviour through the online
channel can be a threat to the existing physical infrastructure driven supply chain
model.
 Regulations – New environment regulations that are imposed in Paris agreement
can affect few existing product categories of Capgemini.
 Shortage of innovative products – Ever since its formation, the company has
developed many products that are often developed by other competitors also. New
innovative products are not regular from the company that leads to high and low
swings in the sales.
 Tough competitive market – The IT market sees many emerging payers which will
focus on low cost value proposition.