Categories: Strategy

EFE Matrix of Dell Corporation

The company was founded in 1984 at Austin, Texas, United States. The company is based on the industry of computer hardware, software, IT consulting and services. The Michel Dell was the founder of the Dell Company and he is also the Chairman and CEO of the company. The products and services manufactured and produced by the company are desktops, net books, servers, printers, smart phones, scanners and storage etc. The company has good name in supply chain management and electronic commerce. It is one of the second largest non oil company in the world and first largest in Austin Texas.

Dell Corporation External Factor Evaluation Matrix

External Strategic Factor	Weight	Rating	Weighted Score	Comments
OPPORTUNITIES
The company is maintaining its very strong position in the market	0.13	4	0.52	The company is maintaining its very strong position in the market as many of the issues and problems are faced by the founder of the company.
The company is introducing new enticing goods and services	0.08	4	0.32	The company is introducing new enticing goods and services in the market for its customers and a very wide and diversified product portfolio involving the peripheral devices like the printers and toners.
opportunity to broaden its scopes in the developed countries like India, Europe and China.	0.03	4	0.12	The company has the opportunity to broaden its scopes in the developed countries like India, Europe and China.
Cost leadership	0.14	4	0.56	The company is selling its few products and services at lower costs so that to open new opportunities in the whole world and also the rebranding for retailers gives the company a new market segment in order to attack the associated marketing costs.
Expansion	0.05	3	0.15	Expansions should be made by the company especially in the areas of education and government.
Internet Selling	0.03	2	0.06	The opportunity for the company y to introduce its products through the internet in order to gain larger market shares and provide convenient place for the customers in order place their orders and get the information.
Growing Demand	0.04	2	0.08	The growing demand for the laptop is the great opportunity for the company in order to grow new segments in the market.
THREATS
Rapidly changing market	0.04	4	0.16	The change in the varieties of the personal computers is the threat for the company because new light weight computer accessories are established.
High quality & low prices combination demanded	0.06	4	0.24	The high quality products are manufactured by the companies with the low pricing that is the challenge faced by the company.
Low growth rate	0.09	3	0.27	The growth rate of the company is slowing down with the passage of time because of the shares in the market and the large and intense competition that is in the market.
Advancements in technology	0.07	4	0.28	The rapid increase in the advanced technology is the issue which is the opportunity for the company it improves but on the same hand it is the threat for the company because Dell have to keep its position close to its competitors.
Labor costs	0.08	3	0.24	There is an issue that the Dell is the PC maker not a PC manufacturer due to which labor costs remains low and disadvantageous for their growth.
Exchange rates	0.02	3	0.06	The changes in the exchange rates and fluctuations in the market currency leave the company to the potential losses related to the distribution of supply chain.
Trade barriers and hurdles affect	0.14	3	0.42	Trade barriers and hurdles affect the position of the company in multiple countries that decline the growth.
Total Weighted Score	1		3.06

Conclusion

Based on the above calculations it has been concluded that the company’s Total Weighted Score is 3.06 which shows that to a larger extent company has been successful in utilizing its opportunities and minimizing the threats around it.