SWOT analysis of Dell Computers

1. SWOT ANALYSIS FOR DELL
BY:
BACHU VINAY CHAITHANYA

2. Dell Inc.
Name Dell Inc.
Industries served Computer Hardware, Software, IT
Services, IT Consulting
Geographic Served Worldwide
Headquarters U.S.
Current CEO Michael Dell
Revenue $ 56.94 billion (2013)
Profit $ 3.12 billion (2013)
Employees 115,000 (2013)
Main Competitors Apple Inc., Samsung Electronics,
Lenovo, HP, Sony, Asus and Many
others

3. 1. Growing market share
2. Direct sales approach
3. Build to Order approach
4. Long term partnerships with reputable suppliers
of name-brand parts and components
5. Reputation/image
6. JIT, know-how and capabilities
7. Contracts with local service providers to handle
customer requests for repairs
8. Environmental policy
1. Lacks the product line and service breadth
of Hewlett Packard and IBM
2. The direct sales approach is not the
preferred distribution channel in Europe.
3. No in-house repair service capabilities
1. Customers value convenience and one
stop shopping
2. Low cost manufacturing countries
(Indonesia, Philippines etc.)
3. Marketing on the Internet
4. PC households with Internet access will
increase 5% every year
5. Some rivals weak in PCs in all the world’s
major markets
6. Servers market can be tapped
1. Global economic recession
2. Aggressive pricing wars
3. Continuously changing consumer demands.
4. Strong brand name of competitors (IBM, HP)
5. Rapid technological advancement
6. A long-term slow down in global sales of PC’s
and servers
7. Corporate customers relying more and more
heavily on the systems and service capabilities that
IBM and HP provide
Strength Weakness
Opportunities Threats

4. Comparison of Laptop Manufacturers

5. TOWS MATRIX DEVELOPMENT

6. S-O Strategies W-O Strategies
1. Conduct aggressive domestic
advertising campaign. (S1, S2, S3,
S5, O1, O2, O3, O5, O6, O7)
2. Establishing new manufacturing
plants in countries like Philippines,
Indonesia to avoid operating costs
1. Joint Venture with EMC to offer
storage services, Server services
(W1, O1, O5, O6)
2. Open Dell outlet stores (W2,
W3, O6, O7)
S-T Strategies W-T Strategies
1. Produce low price standardized
PC.
(T2, S1, S2, S4, S5, S7)
2. Reduce workforce by 1700
employees to cut costs
(T1, T2, S2, S3, S4, S7, T6)
1. Conduct aggressive global
advt campaign to promote Dell
Direct Selling (W2, T3, T2)
2. Digital Marketing of products
3. Sustainable and achieving
competitive advantage.