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Detailed S.W.O.T Analysis of Dell

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DELL is one of the world’s leading technology businesses, with exceptional capabilities that help improve lives. Their work has an influence on everyone, everywhere, from hybrid cloud solutions to high-performance computing to significant social impact and environmental projects.

In this case study, we’ll learn about the SWOT Analysis of Dell and the company. Let’s get started.

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About DELL

 

SWOT Analysis of DELL | IIDE

Dell is an American corporation that sells clients notebooks, data storage, servers, printers, and accessories. When we speak of Dell, we may claim it’s one of the world’s top laptop brands. Dell laptops are designed to fulfil each company’s requirements and handle all tasks with the newest technologies.

The laptop models are known as Inspiron, Vostro, XPS, G Series, and laptops from Alienware. The global corporate body that develops, creates and produces personal computers (PCs) and a wide variety of computing goods, Dell Inc., previously PC’s Limited, and Dell Computer Corporation.

 

SWOT Analysis of DELL

SWOT analysis mainly focuses on 4 aspects, they are

  • Strength 
  • Weakness
  • Opportunities
  • Threats

Here, Strengths and weaknesses are internal factors whereas opportunities and threats are external factors

Let’s look into what these 4 factors are and how it helps companies to improve

 

1. Strengths of DELL

Strengths are the aspects in which a company is already performing well and they are the aspects in which a company gives competition to its competitors

 

  • Direct Model

The Direct Model enables consumers to personalize their computers in full. The market is becoming knowledgeable and people demand a product that can address their specific requirements more than ever. For laptops, this means that users desire better performance and portability alternatives

  • Well-controlled Suppliers

Dell also has an advantage in its turnaround time in inventories and in well-controlled supplier relations. These business functions produce significant cost savings, which Dell may pass on to its customers. The end result is a personalized computer delivered within days to the customer’s doors.

  • Business Relationship with Corporates

One of the major assets of Dell in targeted management is that around 75% of all sales revenue is generated by large companies and governments. In other words, Dell has established relations with big firms, and most of their business is hence supported. These organizations, in turn, make their partnership a reality by supplying Dell products for their staff.

 

2. Weaknesses of DELL

Weaknesses are the aspects in which a company needs to improve because in these aspects their competitors perform better than them

 

  • Less Share in the education sector

The main vulnerability of Dell is the market segment of university students. Dell contributes only a meager 5 percent of the overall revenue from educational institutions such as universities. Dell has somehow been focusing on business clients and institutional clients in government agencies. Dell is not popular among the collegiate market, as many students buy their PCs through their schools.

  • No Trial before buying

Dell’s biggest problem is that purchasers cannot touch physically or view the product they wish to buy. Although the Dell Direct Model offers many amazing possibilities, its major limitation is that buyers cannot go to retailers, try various goods and go home on a single trip with a computer.

  • Customization

The very feature that makes Dell different from its competitors, customization, is also problematic in that consumers cannot purchase a Dell as easily as some other manufacturers can. Many computer consumers are cautious about a product they can’t check before buying. In addition, an anxious purchaser should wait for a few days before the delivery of their machine. This is the price to pay for personalization.

 

SWOT Analysis of DELL | IIDE

 

3. Opportunities for DELL

Opportunities are the areas where a company can use its strengths to grow and can increase its profits by using the opportunity in a best possible way 

 

  • Use of Personal Computers

The purchase and use of personal computers are more than before. For example, the markets for laptops expand significantly more quickly than the desktop markets. This trend provides Dell’s laptop business with a huge opportunity to grow in all sectors.

  • More Educated Buyers

The first trend indicated is another big opportunity for all the targeted segments. Customers become more aware of personal computers as a second-time purchase is a growing number of them. Consumers who have previously bought computers know what they want, and Dell can cater. In a relatively easy setting, the Direct Model offers the basis for users to construct customized PCs. In this respect, this shift towards more educated buyers offers a significant opportunity.

  • Communication and technology

Enhanced communication and technological integration also provide Dell with enormous prospects. Now customers may use the Internet to customize their computer, place a purchase, or even simply get information. For Dell as well as the consumer, this is more efficient, with several benefits. Firstly, Dell lacks real retail outlets in some ways because of the capacity of the customer to go to an “online shop.”

 

4. Threats to DELL

Threats cover aspects where a company needs to take care of things that can affect the company in a negative way

 

  • Pricing

One of Dell’s greatest external risks is that the difference in pricing across brands is diminishing. Because other companies can supply PCs at low prices, Dell’s increasing price-conscious client base may be threatened.

  • Volatile Market

There are many threats in a volatile market like personal computers. Computers evolve sometimes every day in a continual way. So Dell is continuously looking for new stuff or introducing new computer systems. It’s vital. In a computer business, the threat of being outdated is a pulsing reality.

  • Chances of decrease in Demand

Dell now has the largest market share. If there is a slowdown in demand, the competition is tighter. To remain a large market share, Dell must work doubly hard to distinguish itself from its replacements. A double-edged sword is a technical advancement.

 

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Conclusion

 

Dell is an international computer manufacturing company supplying its products worldwide

Dell do have strengths and opportunities but also it has to improve in some aspects that we saw in the segment of weakness and also it needs to prepare for upcoming challenges that we saw in threats

To read more blogs regarding the SWOT analysis of different companies click here

 

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]

Aditya Shastri

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