Dell SWOT Analysis | SWOT Analysis of Dell
Dell is one of the biggest players in the PC market. They offer PCs, Hardware, Software, Smartphones, Televisions, and many more to its customers. It was founded in 1984 and the current CEO is Michael Dell. We certainly can learn too many things from Dell because it is ranked at number 3rd even in the presence of heavyweights like HP, Apple, Lenovo, IBM, and so on. That’s why we decided to analyze Dell SWOT, strengths, weaknesses, opportunities, and threats. Keep reading to check the insight view of Dell.
Company: Dell Inc.
Formerly: PC’s Limited (1984-1987)
Type: Subsidiary
CEO: Michael S. Dell (Jan 31, 2007–)
Established: February 1, 1984
Founder: Michael S. Dell
Headquarters: Round Rock, Texas, U.S.A.
Industry: Computer software, Computer hardware
Area served: Worldwide
Type: Public
Employees (early 2020): 165,000
Annual Revenue (2019): US$92.15 Billion
Profit | Net income (2019): US$5.529 Billion
Products & Services: Computer Software | Computer Hardware | Personal Computers | Servers | Peripherals | Data Centers | IT Services | Smartphones | Televisions | IT Consulting
Competitors: HP | Apple | Lenovo| Sony | IBM | Microsoft |Samsung | Toshiba | Acer | ASUS
SWOT Analysis of Dell | Dell SWOT Analysis
Strengths of Dell:
Strong Universal Presence:
With 363 offices worldwide, Dell has a strong global presence. It is 3rd largest PC manufacturer in the world and contains a 15 % international market share. There is a chance that this market share will increases to 20 % at the end of 2020.
Robust Financial Status:
Many countries and businesses struggle due to the impact of the pandemic, but Dell also goes strong in this pandemic as its sales of PCs, tablets, and notebooks increased. They also earn a huge sum of money from its development of software.
Remarkable Brand Image:
Dell has a strong brand image in the world with its robust market share and presence. It is regarded as the 90th most valuable brand in the world and the 12th best employer in the world. These things predict the strong image of the company.
Innovative Offerings:
Dell is also diversified in its product categories like PCs, laptops, TVs, smartphones, and many tech-based offerings. This is the reason it is one of the most stable brands in the globe.
Enhanced Investments in R&D:
They increased its investment in R&D to 20 billion dollars. They are also investing in the research and development sector in order to increase their market reach and share. In the last five years, the stability and growth of Dell are increasing day by day.
Extremely Innovative:
As modernity and innovation are one of the major ingredients for success, that’s why Dell introduces new features and technologies in its offerings. This is a major strength of Dell that’s why they emerge as a powerful brand.
Modified Customization:
The users of this century want innovative services and Dell is introducing new features in its products day by day. They also allow their users to come into their outlets and customize their PCs and laptops.
High-Quality Products:
Due to high-quality products, Dell succeeded to retain a strong consumer base. Latitude Rugged Express is considered one of the most innovative and long-lasting laptops of Dell.
SWOT Analysis of Dell | Dell SWOT Analysis
Weaknesses of Dell:
Overreliance on Technology:
Dell mainly focuses and invests in tech-based services which can cause a loss in its revenue in case of any decline in the tech sector. This weakness exposes the company’s catastrophic losses in the future.
Lack of Innovation:
Dell earns a major sum of its profits from its PC sales. This kind of overreliance on single products shows that they are lacking in diversification and innovation. This thing also causes damage to the company.
Few POS:
The main reason for the success of any organization depends on the point of sale. Many competitors of Dell diversify their reach in many regions of the world whereas Dell only focuses on major outlets and shops. This kind of poor strategy threatens the company’s worth and profit.
Decreasing Service Delivery:
Unnecessary cost-cutting in many projects leads to many problems of profits and growth. it is important for Dell to invest in effective projects to expand its portfolio.
SWOT Analysis of Dell | Dell SWOT Analysis
Opportunities for Dell:
Target Emerging Markets:
As we know emerging markets have the potential to increase any company’s growth and profit, so Dell should focus on emerging markets because these people love to use quality products and services. They can offer cloud computing services in Asia and Africa to increase their sales.
Enlarge Growing Divisions:
The rising demand for smartphones and tablets is a big opportunity for Dell. They can invest in these sectors to expand its portfolio. They also offer smartphones but by introducing tempting features they can increase their sales and profits.
Mergers and Acquisitions:
Many big companies and organizations are growing rapidly with the help of successful acquisitions and mergers, so it is important for Dell to make big acquisitions and partnerships so that they can increase its reach in every region of the globe.
Fortify Networking Services:
Many companies are now focusing on networking services for data management, but Dell is already working in this sector. The only thing they need is to strengthen their networking services to become more powerful.
SWOT Analysis of Dell | Dell SWOT Analysis
Threats of Dell:
Declining PC Market:
As we mentioned earlier that Dell heavily depends on the sale of its PCs, but the PC market is on the decline due to the advancement in technology in the form of laptops, tablets, and notebooks. This thing can be the biggest threat to a company’s revenue and sustainability.
Second Wave of COVID-19:
As the first wave of pandemic devastated the world, but the second wave can cause more damage. This thing also leads to much financial crisis and a loss in revenues for Dell. Many companies and firms are suffering due to this pandemic.
Fierce Competition:
The major giants like HP, IBM, Toshiba, Lenovo, and so on can also affect Dell’s market share. They offer better quality at reasonable prices to their customers that can threaten the company’s profitability. Many counterfeits are also providing this type of service at an affordable cost that also creates a bad impact on Dell’s revenue.
Recession:
Just like other companies, Dell also facing a looming recession. Many people lose their jobs and business are shutdowns due to the devastation of the pandemic. These kinds of looming recessions can affect and threaten Dell’s stability and growth.
High Tariffs:
Many countries and governments impose high tariffs on the import and export of electronics. In 2019, many tech companies rejected the proposal of tariffs on electronic products. This type of laws and tariffs can also threaten the future of Dell.
Legal Problems:
Dell and other tech companies face huge criticism and lawsuit due to exploiting child labor in Congo. This kind of negative scandals and lawsuits create a bad impact on Dell’s image and growth.
The Dell SWOT Analysis is completed. Our team is available to carry out a SWOT Analysis of the required company or product.
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