tech industry usas information technology companies analysis
How And WhatBy: Joe David | Tags:SWOT analysis of the USA’s Information Technology (IT) industryThis detailed SWOT analysis of the USA’s Information Technology (IT) industryaims to provide readers with a comprehensive insight into the strengths andthe weaknesses of the USA’s Information Technology (IT) industry. It also aimsto examine the tech opportunities the country should explore and the threatsit needs to keep an eye on.Strengths of the USA’s Information Technology (IT) industryThe USA is one of most technologically advanced countries and houses some ofthe hottest and biggest tech companies in the world. For instance, Alphabet(Google), Amazon, Facebook, Salesforce, Uber, Apple, Netflix, Dell, Workday,Twitter, Oracle, and Cisco to name but a few. No other country in the worldcan match such a gigantic and extremely impressive portfolio!There were approximately 12.1 million people working in the USA’ tech industryin 2019. According to The Internet Association (cited in Shepardson, 2019) theInternet sector contributed approximately $2.1 trillion to the U.S. economy in2018 which represented around 10% of the country’s GDP. This sector alone had6 million direct jobs and facilitated another 13 million jobs indirectly.The USA has a fantastic domestic market what craves for technologicallyadvanced products and services. According to Clement (2019), more than 90% ofthe U.S. adults use the Internet, while 43% use it many times a day. Thecountry is world-renowned for its capacity to create technology-driven newindustries, products, and services. Its advanced tech infrastructure, affluentdomestic market, the public sector’s comfortability with cloud computing andwidespread adoption of software as a service solution, fierce competitionamong big tech giants, and constant innovation is continually driving theindustry to a new height.One of the biggest strengths of the USA’s tech industry lies in the fact thatmany of the country’s universities have been at the forefront of advanced techresearch and development. Likewise, the country draws talent from around theworld. Many U.S. companies have global reach and the country receivessubstantial foreign investments every year.Weaknesses of the USA’s Information Technology (IT) industryThough millions of people are involved in the tech industry, finding the righttalent has been a major challenge for many American tech companies. Accordingto Raidt (n.d.) the country’s educational institutions and training programmesare not producing an adequate number of people that can meet the growing andhighest demands. This affects the overall growth of the industry. Manyanalysts also argue that millions of high-skill and high-paying tech jobscannot be filled in by the number of qualified workforces currently availablein the USA.Activities of some large tech companies and service providers have badlyimpacted on public trust. Many people are worried about their privacy andoften question whether their data is misused. Likewise, fake news andmisinformation have affected the public trust and may analysts have pointedtheir fingers to the role of some tech companies in helping the spread of fakenews.Opportunities for the USA’s Information Technology (IT) industryThere are many investment opportunities in the USA for both domestic andinternational companies. Telecommunications, information and communicationtechnologies, medical technology, biotechnology, and high technology are someof the industries that offer investment opportunities (Santander, 2019).Similarly, with new and innovative products and services, US companies canfurther increase their global reach. Cloud computing, artificial intelligence,media, and telecommunications are four major areas to look out for now and incoming years!Threats to the USA’s Information Technology (IT) industryThreat is the last element to address in SWOT analysis of the USA’sInformation Technology (IT) industry. In the field of global technology, theU.S companies must compete with companies from China, South Korea, Russia,Germany, Canada, the UK, India, and some others. Moreover, trade wars withChina are very concerning as well, as many U.S. companies are worried aboutits impact on the sales of their products and services to customers in China.Waters (2020) reports that Cisco’s sales to Chinese telecom groups have beendeclining for years.We hope the article ‘SWOT analysis of the USA’s Information Technology (IT)industry’ has been helpful. You may also like reading PESTEL analysis of theUSA and SWOT analysis of Google Other relevant articles for you are:SWOT analysis of FacebookSWOT analysis of AppleMarketing Mix of AmazonCompetitors of McDonald’sAdvantages and disadvantages of online learningIf you liked any of these articles, please feel free to share with others byclicking on the icons below. Also enter your email address at the bottom ofthe site to ‘Join us’ free for our newly published articles and newsletters.Last update: 11 June 2020References:Clement, J. (2019) Internet usage in the United States – Statistics & Facts,available at: https://www.statista.com/topics/2237/internet-usage-in-the-united-states/ (accessed 05 June 2020)Raidt, J. (n.d.) Capable workforce? Available at:https://www.uschamberfoundation.org/capable-workforce (accessed 10 June 2020)Santander (2019) United States: Foreign Investment, available at:https://santandertrade.com/en/portal/establish-overseas/united-states/foreign-investment (accessed 10 June 2020)Shepardson, D. (2019) Internet sector contributes $2.1 trillion to U.S.economy: industry group, available at: https://www.reuters.com/article/us-usa-internet-economy/internet-sector-contributes-2-1-trillion-to-u-s-economy-industry-group-idUSKBN1WB2QB (accessed 8 June 2020)Waters, R. (2020) How the trade war is damaging the US tech industry,available at: https://www.ft.com/content/16fa93ba-bf69-11e9-b350-db00d509634e(accessed 10 June 2020)###### Photo credit: Pixabay#### Author: Joe DavidJoe David has years of teaching experience both in the UK and abroad. Hewrites regularly online on a variety of topics. He has a keen interest inbusiness, hospitality, and tourism management. He holds a Postgraduate Diplomain Management Studies and a Post Graduate Diploma in Marketing Management.