Salesforce is a cloud-based Customer Relationship Management (CRM) software that provides

businesses with a suite of tools and services to help manage and analyze customer interactions
and data. With over 150,000 customers and more than 4 million users, Salesforce is one of the
most popular CRM software solutions available today. In this blog post, we will discuss
Salesforce’s competitive advantages that have made it a leading player in the CRM industry.
Salesforce Competitive Advantages
Cloud-based Solution
One of the key competitive advantages of Salesforce is its cloud-based architecture. The software
is delivered over the internet, which means that businesses do not need to invest in expensive
hardware or software to use it. Additionally, because it is cloud-based, Salesforce can be
accessed from anywhere, at any time, and from any device. This is particularly important in
today’s world where remote work has become the norm.

Ease of Use
Another competitive advantage of Salesforce is its ease of use. The software has a user-friendly
interface that is easy to navigate, making it simple for users to access the information they need
quickly. Additionally, Salesforce offers comprehensive training and support resources to help
users get the most out of the software. This is especially helpful for businesses that are new to
CRM software or that do not have a dedicated IT team.
Customization
Salesforce offers a high degree of customization, allowing businesses to tailor the software to
their specific needs. Users can create custom fields, workflows, and dashboards to ensure that the
software meets their unique requirements. This flexibility is particularly valuable for businesses
that have unique sales processes or that operate in niche markets.

Integration
Salesforce offers a wide range of integration options that allow businesses to connect the
software to other systems and applications. This means that businesses can leverage their
existing technology investments, such as their ERP or marketing automation software, and
integrate them with Salesforce. This integration provides businesses with a more holistic view of
their operations and enables them to make more informed decisions.

Mobile App
Salesforce also offers a mobile app that allows users to access the software from their mobile
devices. The app provides the same functionality as the desktop version, allowing users to
manage their sales pipeline, access customer data, and collaborate with team members while on
the go. This mobile functionality is essential for businesses with remote or field-based sales
teams.

AI-powered Features
Salesforce is at the forefront of using artificial intelligence (AI) in CRM software. The
software’s AI-powered features, such as Einstein Analytics, help businesses gain deeper insights
into their data and improve their decision-making capabilities. For example, Einstein Analytics
can identify patterns in customer data that might be missed by human analysts, allowing
businesses to make more informed decisions about their sales and marketing strategies.

Community
Salesforce has a large and active community of users and developers who contribute to the
software’s development and provide support to other users. This community is an invaluable
resource for businesses that are new to the software or that need help with specific features or
functionalities. Additionally, the community provides a platform for users to share best practices,
tips, and tricks, helping businesses get the most out of the software.

Security
Salesforce places a high priority on data security and has implemented robust measures to protect
customer data. The software uses industry-standard encryption to protect data in transit and at
rest, and offers multi-factor authentication to ensure that only authorized users can access the
software. Additionally, Salesforce undergoes regular security audits and maintains compliance
with a wide range of industry standards and regulations.
Despite its many advantages, Salesforce does have some weaknesses that can be
addressed. Some of the key weaknesses of Salesforce include:

1. Cost: Salesforce can be expensive, particularly for small businesses or startups.

While the software offers a range of features and functionality, the cost may be
prohibitive for some businesses.
2. Complexity: Salesforce can be complex, particularly for users who are new to
CRM software. While the company offers comprehensive training and support
resources, the learning curve can be steep.
3. Customization limitations: While Salesforce offers a high degree of
customization, there may be limitations to what can be customized, particularly
for businesses with very specific requirements.
 Political Factors that Impact Salesforce.com, inc.
Political factors play a significant role in determining the factors that can impact Salesforce.com,
inc.'s long term profitability in a certain country or market. Salesforce.com, inc. is operating in
Application Software in more than dozen countries and expose itself to different types of political
environment and political system risks. The achieve success in such a dynamic Application
Software industry across various countries is to diversify the systematic risks of political
environment. Salesforce.com, inc. can closely analyze the following factors before entering or
investing in a certain market-

 Political stability and importance of Application Software sector in the country's economy.
 Risk of military invasion
 Level of corruption - especially levels of regulation in Technology sector.
 Bureaucracy and interference in Application Software industry by government.
 Legal framework for contract enforcement
 Intellectual property protection
 Trade regulations & tariffs related to Technology
 Favored trading partners
 Anti-trust laws related to Application Software
 Pricing regulations – Are there any pricing regulatory mechanism for Technology
 Taxation - tax rates and incentives
 Wage legislation - minimum wage and overtime
 Work week regulations in Application Software
 Mandatory employee benefits
 Industrial safety regulations in the Technology sector.
 Product labeling and other requirements in Application Software

Economic Factors that Impact Salesforce.com, inc.

The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign
exchange rate and economic cycle determine the aggregate demand and aggregate investment
in an economy. While micro environment factors such as competition norms impact the
competitive advantage of the firm. Salesforce.com, inc. can use country’s economic factor such
as growth rate, inflation & industry’s economic indicators such as Application Software industry
growth rate, consumer spending etc to forecast the growth trajectory of not only --sectoryname--
sector but also that of the organization. Economic factors that Salesforce.com, inc. should
consider while conducting PESTEL analysis are -

 Type of economic system in countries of operation – what type of economic system there is and
how stable it is.
 Government intervention in the free market and related Technology
 Exchange rates & stability of host country currency.
 Efficiency of financial markets – Does Salesforce.com, inc. needs to raise capital in local
market?
 Infrastructure quality in Application Software industry
 Comparative advantages of host country and Technology sector in the particular country.
 Skill level of workforce in Application Software industry.
 Education level in the economy
 Labor costs and productivity in the economy
 Business cycle stage (e.g. prosperity, recession, recovery)
 Economic growth rate
 Discretionary income
 Unemployment rate
 Inflation rate
 Interest rates

Social Factors that Impact Salesforce.com, inc.

Society’s culture and way of doing things impact the culture of an organization in an
environment. Shared beliefs and attitudes of the population play a great role in how marketers
at Salesforce.com, inc. will understand the customers of a given market and how they design
the marketing message for Application Software industry consumers. Social factors that
leadership of Salesforce.com, inc. should analyze for PESTEL analysis are -

 Demographics and skill level of the population

 Class structure, hierarchy and power structure in the society.
 Education level as well as education standard in the Salesforce.com, inc. ’s industry
 Culture (gender roles, social conventions etc.)
 Entrepreneurial spirit and broader nature of the society. Some societies encourage
entrepreneurship while some don’t.
 Attitudes (health, environmental consciousness, etc.)
 Leisure interests

Technological Factors that Impact Salesforce.com,

inc.
Technology is fast disrupting various industries across the board. Transportation industry is a
good case to illustrate this point. Over the last 5 years the industry has been transforming really
fast, not even giving chance to the established players to cope with the changes. Taxi industry
is now dominated by players like Uber and Lyft. Car industry is fast moving toward automation
led by technology firm such as Google & manufacturing is disrupted by Tesla, which has stated
an electronic car revolution.

A firm should not only do technological analysis of the industry but also the speed at which
technology disrupts that industry. Slow speed will give more time while fast speed of
technological disruption may give a firm little time to cope and be profitable. Technology
analysis involves understanding the following impacts -

 Recent technological developments by Salesforce.com, inc. competitors

 Technology's impact on product offering
 Impact on cost structure in Application Software industry
 Impact on value chain structure in Technology sector
 Rate of technological diffusion

Environmental Factors that Impact Salesforce.com,

inc.
Different markets have different norms or environmental standards which can impact the
profitability of an organization in those markets. Even within a country often states can have
different environmental laws and liability laws. For example in United States – Texas and Florida
have different liability clauses in case of mishaps or environmental disaster. Similarly a lot of
European countries give healthy tax breaks to companies that operate in the renewable sector.

Before entering new markets or starting a new business in existing market the firm should
carefully evaluate the environmental standards that are required to operate in those markets.
Some of the environmental factors that a firm should consider beforehand are -

 Weather
 Climate change
 Laws regulating environment pollution
 Air and water pollution regulations in Application Software industry
 Recycling
 Waste management in Technology sector
 Attitudes toward “green” or ecological products
 Endangered species
 Attitudes toward and support for renewable energy

Legal Factors that Impact Salesforce.com, inc.

In number of countries, the legal framework and institutions are not robust enough to protect the
intellectual property rights of an organization. A firm should carefully evaluate before entering
such markets as it can lead to theft of organization’s secret sauce thus the overall competitive
edge. Some of the legal factors that Salesforce.com, inc. leadership should consider while
entering a new market are -

 Anti-trust law in Application Software industry and overall in the country.

 Discrimination law
 Copyright, patents / Intellectual property law
 Consumer protection and e-commerce
 Employment law
 Health and safety law
 Data Protection

What are Salesforces Opportunities for Growth?

Salesforce has a number of opportunities for growth, including:

1. Expansion into new markets: Salesforce has already made significant inroads into
the enterprise market, but there are opportunities to expand into new markets, such
as small and medium-sized businesses.
2. Development of new products and services: Salesforce has a wide range of products
and services, but there may be opportunities to develop new offerings that meet the
evolving needs of customers.
3. Investment in AI and machine learning: Salesforce has already invested in AI and
machine learning with its Einstein Analytics platform, but there may be opportunities
to further develop these capabilities to provide even deeper insights and value to
customers.
4. Improved integration with third-party applications: While Salesforce offers a wide
range of integration options, there may be opportunities to improve integration with
third-party applications, such as marketing automation software or project
management tools.

Conclusion
In conclusion, Salesforce’s competitive advantages are many, including its cloud-based
solution, ease of use, customization, integration options, mobile app, AI-powered
features, active community, security, and scalability. These advantages have made
Salesforce one of the most popular CRM software solutions available today, and have
helped businesses of all sizes streamline their sales processes, gain deeper insights
into their data, and improve their customer relationships. If you are considering a CRM
software solution for your business, it is definitely worth exploring the many benefits that
Salesforce has to offer.
The General Environment (PESTEL MODEL)

The PESTEL study can be useful in analyzing the qualities and changes in the environment that
might impact a company's performance, allowing the appropriate decisions to be taken at the
right time. It has a significant impact on the company's strategy and operations A PESTEL
assessment is a method that helps firms discover and examine the elements that may impact their
business in the present as well as in the future. which may be classified into six segments that are
far uncontrollable external elements that affect salesforce.com performance, which are as
follows: Demographic(environmental), social, political, legal, technical, and economic.

political Factors

With the introduction of the internet as a powerful information and communication tool it took
several years for planners and governments to establish universal rules and processes for internet
usage. As cloud computing becomes more popular, policymakers are taking a more proactive
approach to technological advances. However, standards for Cloud computing are not yet
developed enough: providers must deal with numerous state policies in order to supply their
services globally. Despite efforts to harmonize the legal environment (such as the US-EU Safe
Harbor Act), standards are still incomplete. Policymakers are moving forward and are concerned
with questions like security, privacy, and the location and control of data.

Salesforce have resolved this issue by implementing local infrastructure in its main markets (US
and the EU), allowing the client to select their operating zone. Salesforce.com Inc. benefits from
strong governmental structures and institutions that promote growth and development.
Government stability also enables companies like Salesforce.com Inc to develop regionally and
worldwide. Trade links with foreign nations assist organizations like Salesforce com inc to
effortlessly and efficiently sustain offshore company affiliations due to political stability and
strength.

Economic Factors

Companies nowadays are under increasing cost pressure, and IT is no exception. In this context,
cloud computing offers a cost-effective alternative to traditional on-site installations, and this
element will be a key decision facilitator for IT initiatives in the next years. Furthermore, cloud
computing offers the advantages of rapid time-to-market and flexibility, both of which are
essential to gain a competitive edge. IT demand is shifting from on-site to on-demand since it
does not require large capital investments and is more flexible. This pay per usage approach is
expected to be used more frequently as suppliers enhance their products to meet the needs of
business IT purchasers. In order for enterprises like Salesforce.com Inc to thrive, the economy
must have a modest inflation rate. A modest inflation rate will also help businesses thrive and
will contribute to an increase in consumer confidence and spending tendencies, as a
consequence, the economy will benefit and overall disposable income will rise.

Social Factors

One of the social events of the last several decades has been the increased use of the internet for
both personal and professional purposes. Because cloud computing is an internet-based
technology, it will have a favorable impact on the internet's expanding popularity. Our age is
actively involved in a variety of digital activities, and future generations will undoubtedly be
more linked to the internet. Organizations must use the internet to improve their operations and
interact with their clients and partners.

A bigger proportion of the younger population benefits Salesforce.com by providing the

corporation with a broader customer demographic bas Salesforce.com will have an edge due to
their emphasis on quality. A higher degree of awareness also implies that consumers desire
quality and are aware of what the product claims and provides. As a result of this contrast,
Salesforce com inc employs push and pull techniques to increase its attractiveness’.

Technological Factors

Technologies such as virtualization and cloud computing are rapidly becoming important
advancements. The trend enables for the effective use of resources and the ready availability of
IT at cheaper costs. Cloud computing is regarded to be the forerunner of virtualization
technology. Virtualization is the process of dividing computer resources into distinct settings and
refers to numerous types, such as platform, desktop, resource, and application virtualization.
When the internet offers IT services, they become available to a wide number of clients.

Businesses such as Salesforce.com Inc. are increasingly utilizing technology advancements and
innovation to improve corporate efficiency and effectiveness. There is a high rate of innovation
across all industries, making organizations like Salesforce. com both competitive and
progressive. Improved technical infrastructure also aids in the attraction of foreign direct
investment, which leads to continued development and improvement.

As a consequence, Salesforce.com has a significant competitive edge in terms of technology

breakthroughs, and the company continues to employ and engage in innovation processes to
improve business cycles and operations.

Environmental Factors
Electricity consumption in servers is quickly increasing, and it is estimated that the IT industry
alone accounts for 2% of worldwide CO2 emissions. Every year, around two million tons of e-
waste are generated in the European Union alone (25-33 percent of which is due to IT
equipment). Because of these realities and rising regulatory pressure, IT providers and their
clients are changing the way computer assets are operated in order to gain efficiency and save
money while simultaneously reducing the environmental effect. Cloud computing is one method
for reducing environmental impacts by properly utilizing IT infrastructure to achieve increased
infrastructure utilization.

Consumers are also more interested in consuming recycled items. Salesforce.com, like many
other businesses, has developed particular sites for disposing of items to be recycled and is also
offering a new product line of recycled products for consumers to profit from.

Legal Factors

Attempts are being undertaken to create a unified and harmonized legal framework. Vendors are
nevertheless subject to local regulations, which can restrict the free movement of information
across nations. Nonetheless, these standards must be followed in order to protect the interests of
Cloud service users. For example, the Canadian government prohibits public sector IT projects
from employing hosting in the United States. The primary areas where the legal formulation falls
short are those related to the safety of sensitive data, data ownership, and location,
confidentiality, and intellectual property. The future regulation is still uncertain, and it puts
substantial constraints as the Cloud moves forward with no geographical boundaries.

Salesforce.com, Inc.'s leadership should examine the following legal issues when entering a new
market: Antitrust legislation in the Application Software business and throughout the country,
Discrimination legislation, Patents and intellectual property law, Consumer protection and
electronic commerce, Employment legislation.