SWOT Analysis of Dell Corporation

Dell Corporation was founded by Michael Saul Dell (one of the richest people in the world, with a net worth of US$14 billion in 2010) in 1984. The company is headquartered in Round Rock, Texas. Dell employees more than 96000 people worldwide. The Company operates in four global business segments: Small and Medium Business, Large Enterprise, Public and Consumer. The SWOT analysis of Dell Corporation is given below:




  1. Dell is one of the biggest technological corporations in the world.
  2. Dell is scheduled at 38 number on the Fortune 500 (2010). Fortune also lists it as the Number 5 most admired corporation in its industry.
  3. Dell has huge acquisitions and mergers. For example acquisition of Perot Systems (2009) and Alienware (2006). 
  4. The company has experienced management and leadership. For example Michael Dell, at the present is the computer industry’s longest-tenured (CEO) chief executive officer.
  5. Dell is a highly innovative company in the industry and has very strong E-commerce and supply chain management.
  6. Dell is the largest firm in the Austin and 2nd biggest non-oil corporation in Texas and 5th largest in Texas by revenue.
  7. Direct selling to the customers by understanding customers’ needs and preferences is important strength of the company.
  8. Dell manufactures products near to its customers and use just-in-time (JIT) producing approach to minimize the cost. 
  9. Dell has strong customer base. Approximately two-third of Dell’s sales is generated from government agencies, large corporations and educational institutions.
  10. The company is renowned for its distinctive Direct Model, Industry-leading growth, award-winning customer service, and consistent strong financial performance.
  11. Dell has differentiated itself from competitors by providing potent systems to the clients or customers at competitive prices.
  12. Dell has the industry’s most efficient procurement, manufacturing, and distribution system.





  1. Dell is highly dependent upon its suppliers which may cause great troubles in quality, manufacturing and services. 
  2. Dell’s center of sales is the government institutions and corporate customers which has affected its ability to form relations with customers.
  3. The company does not have proprietary technology. It changes its technology at very fast rate.
  4. Management and Leadership rotate around just one person.
  5. There is no diversification and the company is only focusing the PCs business. 





  1. Advancement in technology will allow Dell to come up with new products and create new market segment.
  2. Improvement in technology will also help the company to introduce efficient-manufacturing systems which will decrease the overall cost of production.
  3. Dell is in the Rapid changing industry; innovation is the only way to remain in the industry and be competitive.   
  4. Customer Preference changes very frequently. They always look for new and updated products. Being a customer-oriented is the sign of success in this industry.
  5. Diversification in related and unrelated business such as: Security devices, soft wares, broadband and PC software are a few of the fastest growing segments.
  6. Backward and forward integration may result in lower cost and increase in quality and service.
  7. Sustaining low-cost leadership is also an important opportunity for the company.





  1. Advancement in technology obsoletes the manufacturing facilities as well as products of the company.
  2. Dell is facing strong competition to sustain its market share.
  3. Industry is witnessing strong Price War between PC producers.
  4. Dell has Strong competitors in the industry such as IBM, Intel, etc.
  5. Dell has the strong presence in the developing countries; currency changeability in those countries create problem for its business.
  6. The company is facing various problems in developing countries such as: political instability, government regulations, tariffs etc.

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