Essay: SWOT Analysis of Dell Computers

Sample Essay

Strengths

The direct model approach is considered to be the biggest strength of the company and this direct approach helps the organization to offer direct relationships with the corporate and institutional customers. The online technical support and their onsite product service can be considered as on the strengths of the company. The customer service of Dell is renowned around the world and different organizations have followed Dell’s model of customer service. Their approach of customization is considered to be a novel idea and this idea is loved by many customers. The prices of Dell are very competitive and it offer very competitive rates at every element of the supply chain. The reliability and support systems are above the part and they offer top notch service before and after the sales. The technological orientation of the company is quite and they develop their computer systems with direct distribution channels. Similarly, Dell believes in the phenomenon of changing the inventory on a faster pace that is the reason why Dell turns over the inventory for an average of every six days. Finally the website of the organization is very interactive and a customized approach is used by the company even in their website.

Weaknesses

The target market of the organization can be considered as their biggest weakness and their core target market is college students and they generate only 3% sales revenue from educational institutions. Dell is not popular among the educational market because students usually purchase computers through their institutions. In certain cases the direct method of Dell and the customized approach created many problems. Dell doesn’t have the distribution channels therefore customer don’t go for retailers and their direct approach in certain cases are creating problems for the organization.

Opportunities

The demand for personal computers is increasing and organizations are spending more and more on personal computers that is the reason why this can be considered as an opportunity for organization. The demand for laptop has increased and customers are shifting from desktop computers to desktops. Dell can grow into other segments and this can treated as an opportunity for Dell computers. Other opportunities are provided by the internet in terms corresponding with the customers is concerned and customers can directly interact with the organization and they can purchase online.

Threats

There are hefty amount of threats in the computer markets that is the reason why Dell also faces certain threats. The technology is changing quite constantly that is the reason why Dell has to change its approach and they have to respond proactively in all the changes. There are different external threats to Dell and one of the most common threats is the price difference among different brands and the competition between the brands are getting stiffer and closer. Since the prices are getting closer and closer customers are forgetting the concept of brand and they are easily shifting towards other brands. Similarly, the element of technological advancement can be considered as a double edged sword.

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