Dell SWOT Analysis

SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a companys strategic situation. The technique is based on the assumption that an effective strategy derives from a sound fit between a firms internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firms strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.

Dell
Dell is one of the worlds largest suppliers of personal computers and related products. It designs, develops, manufactures, markets, and services a range of computer systems. Despite ceding market share to Hewlett-Packard Company in the recent past, Dell continues to have a strong market position in the computer hardware segment, a platform from which it could launch a campaign for regaining the global market leadership in the PC segment. However, availability of counterfeit goods would affect the margins of the company.

Page 1 of 2

Dell SWOT Analysis

Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor Favorable TYPE OF FACTOR Unfavorable

Internal

Strengths Strong market position Strong performance of the Asia-Pacific-Japan segment Wide product portfolio

Weaknesses Weak internal controls Product recalls

External

Opportunities Acquisitions Expanding PC market New retail agreements

Threats Counterfeit goods The ROHS and WEEE directive Economic slowdown in US and Eurozone

Page 2 of 2