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EFE MATRIX FOR DELL CORP

External Factors

Weight

Rating

Weighted
Score

Comments

The
company
is 0.13
maintaining its very
strong position in the
market

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 0.08
introducing
new
enticing goods and
services

0.32

opportunity to broaden 0.03


its scopes in the
developed
countries
like India, Europe and
China.
Cost leadership
0.14

0.12

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.
The company has the opportunity to
broaden its scopes in the developed
countries like India, Europe and
China.

0.56

Expansion

0.05

0.15

Internet Selling

0.03

0.06

Growing Demand

0.04

0.08

changing 0.04

0.16

OPPORTUNITIES

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.
Expansions should be made by the
company especially in the areas of
education and government.
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.
The growing demand for the laptop is
the great opportunity for the company
in order to grow new segments in the
market.

THREATS
Rapidly
market

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 0.06


prices
combination
demanded

0.24

Low growth rate

0.09

0.27

in 0.07

0.28

Labor costs

0.08

0.24

Exchange rates

0.02

0.06

and 0.14

0.42

Advancements
technology

Trade barriers
hurdles affect

Total Weighted Score

The high quality products are


manufactured by the companies with
the low pricing that is the challenge
faced by the company.
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.
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.
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.
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 the
position of the company in multiple
countries that decline the growth.

3.06

Conclusion
Based on the above calculations it has been concluded that the companys 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.