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|
Healthy customer additions
Salesforce.com recorded robust customer additions during recent year. The company provides on-demand CRM services, applications and platforms to the customers located worldwide. Its customers include small, medium size, and large businesses. Robust customer additions resulted in the strong growth of subscription, professional service and support revenues, increasing from $497.1 million to $1,076.8 million. Healthy customer additions enhance the company’s top line growth and its market position. Significant market position
The company delivers integrated, completely customizable enterprise applications to companies of all sizes. Across the industry, the company is recognized as one of the major CRM technology providers for capital markets. Salesforce.com was ranked third on Forbes’ list of 25 fastest growing technology companies, with 40% earnings per share growth and five year sales growth of 72%. Besides, the company is the largest on-demand vendor, making up about 50% of the market.
Focus on research and development
Salesforce.com has been investing a significant amount on technology development over a period of years. The company upgraded its major products and introduced new products in the...