SWOT ANALYSIS FOR DELL

BY:

BACHU VINAY CHAITHANYA

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

1. Growing market share2. Direct sales approach

3. Build to Order approach4. Long term partnerships with reputable suppliers of

name-brand parts and components

5. Reputation/image6. JIT, know-how and

capabilities7. 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 IBM2. 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

shopping2. Low cost

manufacturing countries (Indonesia, Philippines

etc.)3. Marketing on the

Internet4. PC households with

Internet access will increase 5% every year5. Some rivals weak in PCs in all the world’s

major markets6. Servers market can be

tapped

1. Global economic recession2. Aggressive pricing wars3. Continuously changing

consumer demands.4. Strong brand name of competitors (IBM, HP)5. Rapid technological

advancement6. 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

Comparison of Laptop Manufacturers

TOWS MATRIX DEVELOPMENT

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.