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SWOT Analysis of Dell – How does Dell maintain its unwavering dominance?

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This post was most recently updated on March 30th, 2020

Dell is one of the world’s leading digital companies in the modern era. In this digital age, where technological advancements are happening at an unusually fast pace, Dell has managed to maintain its iron-clad reputation without much hassle.

The famous computer manufacturing company has been in business for more than 3 decades. Since its foundation in 1984 by Michael Dell, Dell’s motive has been to completely capture the computer manufacturing forum of the world.

SWOT Analysis of Dell

Despite the strict policies of the company, some of the trade secrets manage to sneak out for the public. The most common is the measure of a company’s strengths and weaknesses that helps different companies learn from tech giants such as Dell.

SWOT Analysis of Dell

Let’s have a look at the SWOT Analysis of Dell:

Strengths

Unmatched Reputation: As mentioned earlier, Dell’s efforts to conquer the tech manufacturing industry have succeeded to quite an extent. As of today, Dell is considered to be the world’s largest PC manufacturer, which includes both laptop and desktop computers.

Considering its widespread reputation of premium quality, Dell manages to turn over inventory every six days (average). This effective and timely routine helps the company to maintain low inventory costs.

Decreased costs: Dell uses an effective Marketing Channel of Manufacturer to Consumer. This allows the company to provides its products directly to its customers at remarkably low costs without involving retailers.

Customer Service: Contrary to popular belief, Dell is believed to have one of the best on-site customer services which manage to fully satisfy the customers, always.

Weaknesses

Although Dell is one of the most successful companies, it has a number of vital weaknesses that are extremely vulnerable to the company.

Proprietary Technology: Despite the computers being Dell’s proprietary products, the company does not have any dedicated proprietary technology.

Retailer relationships: Considering the seriously practiced manufacturer-to-consumer marketing channel, Dell has not developed healthy dealer/retailer relationships. This has affected the company’s growth in many countries.

Customization brings lazy deliveries: Dell claims to build computers with dedicated customizable specifications. But the con that follows the liberty of customization is that the products aren’t available to the customers as readily as that of rival companies.

Opportunities

Dell has been around for 36 years. The best thing about the company is that it has never stopped evolving. The company has learned from shifting trends and has grasped all the possible opportunities to enhance itself.

Diversification: The million-dollar manufacturing company now deals with a handful of products that have created multiple sources of cash-intake.

Computer is a necessity; not luxury: In this fast-paced digital world, the access of computers has shifted from being a luxury to a necessity. Experienced computer users tend to choose Dell’s custom-built computers due to their durability and premium specifications.

Threats

Threats are an important and integral part of a business for every other business. The introduction of threats drives a sense of competition in businesses to thrive for enhancement and betterment.

Rivals: The manufacturing industry has a variety of rivals and is witnessing an increase in competition every year.

Price difference: Dell’s edge of providing premium customized computers is now being challenged by its counterparts as the price difference is almost negligible. This allows customers to scroll through different options.

To conclude, it is safe to say that Dell has a safe balance between its strengths and weaknesses. This allows it to sustain and remain dominant in this challenging digital age.

Let us know what do you think about the SWOT Analysis of Dell and what could be done to enhance its strengths and reduce its weaknesses.

Pursuing my passion i.e. Graduation in Computer Science while creating exciting and informative content to satisfy my thirst of writing.

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