External Environment of Salesforce Essay

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Threats

There are several challenges and threats that Salesforce is confronting due to external factors. Politically, the environment of catering to political factors is growing and due to uncertainties, it is affecting all the businesses especially the international business (Pratap, 2019). Salesforce and other software companies face political threats from countries which puts their companies (domestic business) over international services which makes it difficult and complex for the companies to enter into various countries because of these barriers (Pratap, 2019). It constricts the scope of the business. Also, as the technology is increasing, the governments are moving towards more private data conservation due to which there are frameworks and laws protecting their countries’ data (Salesforce.com SWOT and Pestle Anlaysis, 2018) threatening the growth of the company.

There are some socio-economic threats and challenges as well as the people are changing and the trends and the buying patterns keep changing because of different cultures (Pratap, 2019), it is very important for the Salesforce to keep themselves updated of all these barriers and changes to better penetrate within the market.

Technology is the main factor that derives the growth of this company and since the competition with the competitors is intense in the CRM industry, it’s very threatening to the company as it has to innovate constantly and keep updating since the competitors can come up with any disruptive technology and rule Salesforce out of the market. Also, since there has been an upward growth of technology, there are a number of threats that has come with it like data hacking and data stealing. Since it’s a software company, it is prone to hacking and stealing of the data (Salesforce.

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com SWOT and Pestle Anlaysis, 2018) causing the core competencies of the company to be easily copied and taken advantage of.

Opportunities

There has been a lot of political factors that has also provided benefit to these companies through increasing the consumer’s income levels by cutting the taxes like in US…

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…threatening position of the company in the future. To take advantage of the opportunities present in the market, Salesforce needs to create a customer centric approach and to have a strong business model that takes into account all the political uncertainties. Salesforce need to develop marketing strategy which is locally suited according their linguistic and culture so more and more companies can be attracted to it. Localized marketing strategy helps the company to understand its consumers more deeply and customize the services according to their needs. Salesforce also needs to expand internationally to different countries, maximizing its scope of business. As the software company provides solutions to various companies, the economic factors are very much in favor of the growth of Salesforce (Pratap, PESTEL ANALYSIS OF CRM BRAND SALESFORCE, 2019). These are the factors that will help the company to reap more benefits from the external environment as these opportunities will help the company be more innovative and technologically more advanced in the coming years, helping it to….....

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