SWOT ANALYSIS ON Ariba

abhishreshthaa

Abhijeet S
Ariba (NASDAQ: ARBA) is a software and information technology services company located in Sunnyvale, California.

Ariba was founded in 1996 by Keith Krach on the idea of using the Internet to enable companies to facilitate and improve the procurement process. Procurement had been a paper-based, labor-intensive, and inefficient process for large corporations. According to the company's website, Ariba provides "Spend Management solutions" which help companies "analyze, understand, and manage their corporate spending to achieve cost savings and business process efficiency." Currently, 94 of the Fortune 100 and more than 200,000 other companies use Ariba's SaaS (Software as a Service) solutions to manage their spend and commerce activities.

Ariba was one of the first business-to-business Internet companies to go public (in 1999). The company's stock more than tripled from the offering price on opening day,[citation needed] making the three year-old company worth $6 billion. In 2000, the stock value continued to climb, and Ariba's market capitalization was as high as $40 billion. With the bursting of the dot-com bubble, Ariba's stock price fell dramatically to the low double digits in July 2001, where it has remained since, with a market capitalization of just over $1.5 billion as of June 2010.

Strengths
  • Leading provider of personal computers and imaging and printing
  • Multi-vendor customer services, including infrastructure technology and business process
    outsourcing, technology support and maintenance, application development and support services
    and consulting and integration services
  • Organized into 7 business sections with strong position in each
  • Strong financial condition
  • Skit p� dig
Weaknesses

* Financial condition leans very heavily on the state of our economy not just in the US but worldwide
* Lack of in-house management consulting division
* R&D department has significantly less investments compared to historical spending
* Pay cuts has brought low morale to employees
* We depend on third-party suppliers, and our revenue and gross margin could suffer if we fail to manage
suppliers properly


[*]no vision and mission statement

Opportunities

* Emerging markets, particularly BRIC countries
* continued growth in the traditional enterprise space whilst also opening up new vistas by combining consumer reach with the skills and technology to manage and manipulate an ever-increasing flow of data
* Restructuring of internal IT structure
* Expanded Digital Printing Portfolio



Threats

* Major competition in PC branch from other companies
* Increasing competition on imaging and printing
* Slowdown in economic conditions in US, Europe
* Foreign currency exchange rate changes
 
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