Dell Corporation was founded by Michael Saul Dell (one of the richest people in the world, with a net worth of US$14 billion in 2010) in 1984. The company is headquartered in Round Rock, Texas. Dell employees more than 96000 people worldwide. The Company operates in four global business segments: Small and Medium Business, Large Enterprise, Public and Consumer. The SWOT analysis of Dell Corporation is given below:
Strengths
- Dell is one of the biggest technological corporations in the world.
- Dell is scheduled at 38 number on the Fortune 500 (2010). Fortune also lists it as the Number 5 most admired corporation in its industry.
- Dell has huge acquisitions and mergers. For example acquisition of Perot Systems (2009) and Alienware (2006).
- The company has experienced management and leadership. For example Michael Dell, at the present is the computer industry’s longest-tenured (CEO) chief executive officer.
- Dell is a highly innovative company in the industry and has very strong E-commerce and supply chain management.
- Dell is the largest firm in the Austin and 2nd biggest non-oil corporation in Texas and 5th largest in Texas by revenue.
- Direct selling to the customers by understanding customers’ needs and preferences is important strength of the company.
- Dell manufactures products near to its customers and use just-in-time (JIT) producing approach to minimize the cost.
- Dell has strong customer base. Approximately two-third of Dell’s sales is generated from government agencies, large corporations and educational institutions.
- The company is renowned for its distinctive Direct Model, Industry-leading growth, award-winning customer service, and consistent strong financial performance.
- Dell has differentiated itself from competitors by providing potent systems to the clients or customers at competitive prices.
- Dell has the industry’s most efficient procurement, manufacturing, and distribution system.
Weaknesses
- Dell is highly dependent upon its suppliers which may cause great troubles in quality, manufacturing and services.
- Dell’s center of sales is the government institutions and corporate customers which has affected its ability to form relations with customers.
- The company does not have proprietary technology. It changes its technology at very fast rate.
- Management and Leadership rotate around just one person.
- There is no diversification and the company is only focusing the PCs business.
Opportunities
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