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ID : 52269253| Sep 2020| 15 pages


Business Sector :Information Technology

Operating Geography :United States, North America

About :, Inc. is an American company that provides cloud hosted Customer Relationship Management (CRM) platform. It was started in 1999 by former Oracle executive Marc Benioff, Parker Harris, Frank Dominguez and Dave Moellenhoff as an organization for Software as a Service (SaaS). It is headquartered in San Francisco, California. Its main sources of revenue include subscription fees from its CRM software as well as premier support. Salesforce generates its primitive revenue from subscription and support fees, mainly from the four core categories of businesses viz., Sales cloud, Service cloud, Sales Platform and Marketing and Commerce cloud. In 2018, Salesforce has made minor investments in more than 200 companies based in the technology industry.
Salesforce has robust workforce strength, standing at 29,000 employees as of January 2018. It ranked first in Fortune’s 100 best companies to work for in 2018, which is a great feather in its cap. Salesforce has taken up initiatives for welfare of employees, by focusing on aspects like equal pay, equal opportunity, equal rights and equal advancement.
Salesforce’s mission statement reads “Our core mission is to empower our customers to connect with their customers in entirely new ways through cloud, mobile, social, Internet of Things (“IoT”) and artificial intelligence (“AI”) technologies.” The company began with the vision of reinventing Customer Relationship Management by changing the concept of delivering enterprise software. Salesforce’s vision statement reads “We’re committed to a sustainable future for all.”
Salesforce’s core USP or Unique selling proposition lies in being a “global leader in offering cloud-based CRM or Customer Relationship Management software through the internet as a service. Its software is easily configured and integrated into various platforms and applications. It is intuitive and easy to use and can be deployed via mobile devices and major internet browsers.” Revenue :

$10.48 billion (FY ending 31st January, 2018) (y-o-y growth of 25%)
$8.39 billion (FY ending 31st January, 2017)

Competitive Analysis of

The SWOT/TOWS analysis is a structure, employed to assess a company's competitive stance by identifying its internal strategic factors like strengths and weaknesses, external strategic factors like opportunities and threats. Precisely, SWOT analysis is a primitive evaluation model that evaluates the internal and external factors and their influences on the company's micro and macro environment.
Salesforce’s CRM business model is broken down in to various key business segments offering distinct services like-
• Marketing cloud: offering digital marketing automation and analytics service
• Data cloud: Automated system for maintaining CRM’s record
• Community cloud: offering wide variety of web properties
• Service cloud: offering assistance and customer support based services
• Sales cloud: offering services to monitor entire sales
• Commerce cloud: Monitors business engagement with customers over distinct channels
• Health cloud: Health care CRM to engage with patients
• Financial service cloud and App cloud
Salesforce is a global leader in CRM OR Customer Relationship Management software, the company introduced its first CRM software in the year 2000, since then they have extended their suite of service offerings to almost all sizes of businesses, operating in various industries. Their comprehensive portfolio of services, easy to use CRM application, versatility and customization option, subscription-based model, market share, innovative services, leadership in cloud-based CRM, strong customer base and reliable employee support are all the key strengths of Salesforce that gives the company a competitive edge over its rivals in the CRM industry.
Though has witnessed impeccable growth, certain internal factors like deliberate slow expansion in potential markets, software more adapted to the B2B market and not very favorable for B2C, product pricing which is on the expensive side, not implementing the “multiple roles” feature in the organization, are all weaknesses of The CRM market is profoundly competitive; it is subjected to wavering technology, shifting customer demands, swiftly elaborating with new products and services. Some of Salesforce’s biggest competitors are Microsoft Dynamic CRM, Oracle, and SAP Salesforce is a software-as-a-service (SaaS) vendor; its largest acquisition by far has been InStranet, a customer service technology software provider. This kind of acquisition is a great opportunity for Salesforce. Another big opportunity for Salesforce is its strategic partnership with Google (Google Analytics 360 and G Suite) to provide smarter and collaborative experiences to its customers. Progressions in technology will be beneficial for the company, for instance IoT being the new face of technology can make the CRM model easier and smarter, with the ability to gather and analyze data in the most effective way. Advantages of cloud computing are driving businesses to use cloud-based services, this shows that Salesforce’s offerings are high in demand.
One of the biggest challenges to Salesforce is data security; if the data of their cloud computing platform provider or third-party service partners is breached, then customers will sense that Salesforce is no longer secure and will quit using its services. One instance of fraudulent attack was witnessed in 2009, when one of the Salesforce employee account was breached to obtain sensitive information of customers, however authorities claimed that there was no security flaw with the system, instead the employee was tricked in order to obtain credentials. Security breach is one of the biggest threat apart from various other factors like high competition, economic recession in the US and dependence on third parties for internet services.
The SWOT analysis for is presented below in SWOT Matrix followed by detailed swot analysis report:
1. Growing Revenue
2. Innovative Product Portfolio
3. Leader in on-demand cloud hosted CRM
4. Strong market share
1. Focusing more on home-ground
1. Vertical and horizontal integration
2. Growth of CRM
3. IoT & Analytics
4. Strategic Alliances
1. Data privacy and hacking
2. Regulatory issues to data privacy and usage
3. Dependence on third party for internet infrastructural maintenance
4. Highly competitive market
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Detailed SWOT Analysis of



1. Delivering consistent growth: Over the last 5 years, Salesforce has seen an upward movement of its net revenue. In the year ending January 2018, it reported a net revenue of $10.48 billion, a 25% increase from 2017’s $8.39 billion. It has also seen a positive operating cash flow of $2.74 billion in 2018 which is a 27% year-over-year increase from $2.2 billion in year ending January 2017. The company mainly generates its revenues from subscription fees and support for its services. Its biggest revenue contributor is its CRM software.

2. Innovative Product Portfolio: Until two years ago, most of Salesforce’s revenue came from its CRM category and mainly the Sales Cloud. But overtime, it has sensed the demand of the market and introduced innovative products such as the Service Cloud, Apps Cloud, Marketing Cloud and Analytics Cloud. Its latest offering leverages the power of Artificial Intelligence (AI) via its Einstein AI to help companies improve their CRM by discovering, predicting, recommending and automating the enhanced business process.

3. Leader in on demand cloud hosted CRM: As per industry research data, Salesforce was named the leader of on-demand cloud hosting CRM. Out of all the vendors present, Salesforce received the highest scores for its continued momentum in making large and complex service deals via its knowledge management and augmented reporting.

4. Strong market share: Salesforce continues to dominate the CRM space with a market share of 19.9%, followed by Oracle at 8.4% and SAP with 6.1% as per 2017 half year data. Its impressive mix of cloud-based offerings along with innovative products has helped it to stay ahead of the competition. Salesforce has also made a number of acquisitions to increase its expertise in e-commerce and artificial intelligence domains and integrating the same in its CRM offering. This will strengthen its CRM offering and help in revenue growth.


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


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


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

SWOT & PESTLE (combined)
Complete Report
USD 12.53
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On purchase, the report will reach your email inbox within minutes. At rare times, a slight delay not exceeding 4 hours might be caused.

Check Out Analysis of Other Relevant Companies

The SWOT and PESTLE Analysis reports provide strategic intelligence on the following:
1. The SWOT and PESTLE analysis report of Salesforce presents a comprehension of the complex internal and external factors affecting the brand and its operations. It provides insights into micro and macro factors through a thorough examination of internal and external factors.
2. The report comprises of SWOT and PESTLE matrices to provide a quick glance at internal and external factors, followed by a comprehensive SWOT analysis report and PESTLE analysis report.
3. Utilizing the SWOT/TWOS analysis to examine the present Strengths, Weaknesses, Opportunities, and Threats of Salesforce.
4. Core competitive advantages enjoyed by Salesforce over its rivals and competitors from the CRM industry.
5. Utilizing PESTLE/ PESTEL/ STEEPL Analysis for interpretation of all external factors namely, political, economic, social, technological, legal and environmental and highlighting their impact on the Salesforce business model.
6. Summary of Salesforce founders, employee base, its corporate headquarters, owners & stakeholders and revenue jumps, followed by a complete company analysis to gain insights into company profile, business model, business plans and marketing strategy.
7. Penetrations into Salesforce business diversification, eliciting its key business segments and highlighting its major competitors.
8. Analysis of the acquisitions, mergers, capital raising, equity transactions, alliances or partnership ventures that Salesforce subscribed with deal valuations and the business objectives or goals that were achieved with them.
9. Cognizance of current trends of the IT and CRM industry and its influences on Salesforce.
10. Understanding of Salesforce’s USP or unique selling proposition, mission statement and vision statement that has set a benchmark in the CRM industry.
11. Synopsis of Salesforce’s business model, along with further division and examination of key business segments and business case study.
12. Crisp information about the Salesforce’s share price, key performance indicators, success factors, value proposition and core competencies.
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