Dell Technologies SWOT Analysis
Dell Technologies is a multinational technology company with its headquarters in Round Rock, Texas. This company was officially formed as a result of a merger between EMC Corporation and Dell. The company specializes in the manufacture and sale of a variety of technology products and services, such as smartphones, personal computers, network security, and computer software. The company has three divisions. Dell Client Solutions Group focuses on the production of tangible computer products like computers and phones. Dell EMC is focused on the production of security infrastructure for corporate customers. Lastly, VMware is a subsidiary that specializes in the production of cloud infrastructure. There are several internal and external factors that affect Dell Technologies, as evaluated below.
First, identify and describe what you consider your organization’s external opportunities and threats.
Dell Technologies has the opportunity to further diversify its product portfolio to increase its income in the technology market. The technology industry is growing at a significantly high rate. Every year, new products are developed to improve the quality of human life. Dell has the chance to venture into new developing markets. For instance, the market for smart devices is growing at a fast rate. If Dell Technologies developed such products, it could attract more customers.
There is also an opportunity for international growth for the Dell business. Although this is a multinational corporation, over 50% of its income comes from the U.S. market (Teece, 2010). The business has yet to explore a great opportunity in international markets. Developing countries, for instance, are currently experiencing growth in the middle class, which the company can take advantage of.
The main threat to the operations of Dell Technologies is the saturation of the technology products market. There are currently too many big industry players that affect the performance of Dell in the market. Some of the biggest similar companies include Google, Apple, Amazon, and Huawei. Saturation in the industry increases the level of competition. Dell Technologies will definitely have a harder time attracting customers.
Dell is also threatened by the booming smartphone and tablet industry that seems to be overpowering the laptop market. Dell’s main computer products are laptops and desktop computers. The sale of these products might decline with the increase in the smaller devices in the market. Thus, it may be necessary for the company to venture more into other products.
Second, identify and describe what you consider your organization’s internal strengths and weaknesses.
One of the biggest strengths enjoyed by Dell Technologies is its brand legacy. The company was originally incorporated in 1942. It has developed a recognized and trusted brand globally for more than six decades. It is easier for Dell to convince people to buy its products compared to a new company under a new brand name.
Another strength of Dell is its large product portfolio. The merger with EMC Corporation was very beneficial to the product portfolio of the Dell brand. In addition to computer products, the company extended its products to include the production of software, storage, and security products. A larger product portfolio means the company has a larger market to target.
Dell is weakened by its low spending on research and development. While many companies in the technology industry are advancing at a high rate, Dell has been significantly stagnant in its strategy. It is not a very innovative company when it comes to the development of new products. This is a problem that limits the company’s ability to stand out in the technology industry. Dell is praised for its low-cost products. However, in the current technology market, low cost cannot be a company’s only competitive advantage. A business must learn how to develop products that stand out to beat the ones that already exist in the market (David & David, 2016). Dell’s products are currently too similar to what other companies are producing. Thus, there is little reason for the company to attract new markets.
This brand is also limited by its direct sales strategy. Many computer products brands will retail their products using several channels, including other retailers. On the other hand, Dell prefers having its own retail stores to sell directly to customers. While this model allows the company to set more favorable prices, it significantly limits the company’s brand visibility. The access of Dell computers and smartphones to consumers is much lower than other brands because of the direct marketing strategy.
David, F. R., & David, F. R. (2016). Strategic Management: A Competitive Advantage Approach, Concepts and Cases. Pearson.
Teece, D. J. (2010). Business Models, Business Strategy and Innovation. Long Range Planning, 43(2-3), 172-194.
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Dell Technologies SWOT Analysis
In this assignment, you will choose the organization that you will use as the case study for your course project. Ideally, the company you choose will be a familiar one and one to which have easy access-such as your place of employment, or a company close to where you live. If you are unable to find an organization that fit these criteria, you may use a case study from your textbook. Please consult your instructor if you are considering using a company highlighted in the book. The intention of this exercise is to give you experience identifying the opportunities, threats, strengths, and weaknesses of an organization. This analysis-also known as a SWOT analysis-is vital to generating long-term strategies.
- First, identify and describe what you consider your organization’s external opportunities and threats. David and David (2017) give these examples of opportunities and threats on page 10, “economic, social, cultural, demographic, environmental, political, legal, governmental, technological, and competitive” factors. Using these terms as titles, list the factors under each title and describe them.
- Second, identify and describe what you consider your organization’s internal strengths and weaknesses. David and David (2017) give examples of internal factors (strengths and weaknesses), such as employees, capabilities, management, marketing, finance, production and operations, research, and information systems. Using these terms as titles, list the factors under each title and describe them.
Complete your list of external (opportunities and threats) and internal (strengths and weaknesses) factors with a brief description of each item and submit it as an attachment in the assignment area.
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