Swot Analysis for Salesforce.Com Essay

924 Words Dec 20th, 2011 4 Pages
SWOT ANALYSIS
Salesforce.com is a provider of application services, which allow organizations to share customer information on demand. The company reported healthy customer additions during recent years, which enhances its top line growth and market position. However, the intense competition in the industry may affect the operating performance and profitability of the company. Strengths | Weaknesses | Healthy customer additionsSignificant market positionFocus on research and development | High dependence on the Americas | Opportunities | Threats | Growing demand for cloud servicesBusiness expansionIncreasing presence in Asia PacificPositive outlook for CRM market | Intense competitionEconomic slowdownPrivacy concerns |
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The company joined forces with Unit 4 Agresso, parent company of financial software specialist CODA, to from FinancialForce.com, a new company. Besides, the company invested in Practice Fusion, the leader in free, web-based physician practice application, entered into strategic alliances to launch new offerings with Cisco, and partnered with Adobe to integrate Force.com platform. Business expansion through new investments and strategic alliances will enhance the company’s operations and offerings, thereby increasing its customer base and revenues.
Increasing presence in Asia Pacific
The company has a long-established presence in the Americas and Europe, and is increasing its presence in fast growing markets such as Asia Pacific. The Asia pacific is the company’s fastest growing market, with a revenue growth of about 72% in 2009. The company’s increasing presence in a growing Asia Pacific market will enhance its revenues and market position.
Positive outlook for CRM market
The growing investments in technologies, which enhance productivity, provide insight into customer behaviors, and growing online commerce, sales and marketing activities are expected to enhance the CRM market future and increase the company’s top line growth and customer base.
Threats
Intense competition
The company operates in a highly competitive CRM, enterprise business applications, and development

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