SWOT ANALYSIS ON DELL -
November 24th, 2010
Dell Inc is a multinational information technology corporation based in Round Rock, Texas, United States, that develops, sells and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. Dell had 46,000 employees as of Jan. 30. About 22,200 of those, or 48.3 percent, were in the United States, while 23,800 people, or 51.7 percent, worked in other countries, according to a filing with the Securities and Exchange Commission.Dell is listed at #38 on the Fortune 500 (2010). Fortune also lists Dell as the #5 most admired company in its industry.
Dell has grown by both organic and inorganic means since its inception—notable mergers and acquisitions including Alienware (2006) and Perot Systems (2009). As of 2009, the company sold personal computers, servers, data storage devices, network switches, software, and computer peripherals. Dell also sells HDTVs, cameras, printers, MP3 players and other electronics built by other manufacturers. The company is well known for its innovations in supply chain management and electronic commerce.
On May 3, 2010, Fortune Magazine listed Dell as the 38th largest company in the United States and the 5th largest company in Texas by total revenue. It is the 2nd largest non-oil company in Texas (behind AT&T) and the largest company in the Austin area.
* Large PC maker - economies of scale
* Brand recognition
* Cuts out the retailer
* Lean supply chain; relatively cheap labor
* Online capabilities to customize products
* Strong service reputation
* manufacturing excellence allows diverse products and bespoke orders
* Huge range of products and components from many suppliers from various countries
* Customers view the products as "not state of the art"
* Door to door delivery problem in emergent countries
* some quality concerns from customers
* Diversification strategy by introducing many new products to its range
* Making and selling low-cost, unbranded low-price computers to PC retailers in the United States
* Competitive rivalry that exists in the PC market globally
* New entrants to the market pose potential threats
* Exposed to fluctuations in the World currency markets (i.e., changes in exchange rates)
* substitute products (ipad etc)
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