OpenText Corporation SWOT and PESTLE Analysis

Strength

1. 84% of the world’s largest supply chains are OpenText network customers: OpenText’s customer base includes G10K companies, public sector enterprises, enterprise companies, mid-market companies and customers of their acquired companies. G10K companies are the world’s largest 10,000 companies, typically having more than $2 billion in revenues. It also includes the world’s largest governments and organizations. In order to retain this customer base, OpenText engages in product innovation to increase product value and product distribution. Acquiring of Carbonite and XMedius in 2020 allowed them to strengthen their existing customer base and get new customers. One of the biggest drivers of growth is supply chain optimization. OpenText focuses on sustainable and ethical supply chains with high degree of traceability. 21 of the 25 largest supply chains in the world use OpenText services.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

1. Development of new products ahead of competitors: The world today is constantly changing, and technology is evolving faster than ever before. Tech companies must keep up to speed with this innovation and constantly come up with products that will satisfy consumer wants while staying ahead of the competition. Tech products are usually cost intensive and have short life cycles. Hence to earn profits, they must earn large amounts of revenue to offset the costs. If competitors manage to come up with a better product before Opentext, they may lose revenue not only for that product, but also a significant portion of the market share for subsequent products. Hence to remain competitive, OpenText will have to constantly innovate, launch, and promote new products, price their products competitively and offer good after-sales services.

The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Political

This section is available only in the 'Complete Report' on purchase.

Economic

This section is available only in the 'Complete Report' on purchase.

Social

This section is available only in the 'Complete Report' on purchase.

Technological

This section is available only in the 'Complete Report' on purchase.

Legal

1. EU’s GDPR and California’s data privacy law limit what consumer data tech companies can access: In 2018, amidst growing privacy concerns, EU passed a law called the General Data Protection Regulation (GDPR). It is said to be the toughest privacy and security law in the world. Software companies often collect consumer data without their knowledge in order to understand what consumers want from their products order to improve consumer experience. However, more and more people are concerned about their personal data being used and processed. Under the GDPR, even companies not based in the EU will be forced to comply to its regulations if they collect data from EU citizens. Inspired by GDPR’s good public reception, governments around the world are also enacting data privacy laws. California recently legislated a strict consumer protection law. While this may be good news for consumers, tech companies who were earlier collecting data on their own terms will have to reform and collect only that data which the laws allow. Moreover, they have to have a strong legal team in place to ensure that they do not mistakenly commit privacy breaches which could result in very expensive lawsuits and bad publicity.

The remaining section under "Legal" is available only in the 'Complete Report' on purchase.

Environmental

This section is available only in the 'Complete Report' on purchase.