Strength | Weakness |
· The largest PC maker and one of the best-known brands. · Uses latest technology direct to customer business model and the first PC maker to offer next-day, on site product service. · Low operating costs as a result of cutting out the retailers and supplies directly to the customers (CRM). · CRM enables to provide top-notch customer service before and after the sale and the system is built to meet individual customer’s specifications, reliability, service and support. · Non-manufacturer-components are made by the supplies and it assembles the computers using relatively cheap labor. · The finished goods are then dropped off with the customer and it has total command of the supply chain. · Tums over inventory for an average of every six days, keeping inventory costs low. · Opportunity. | · Customers cannot go to retailers because dell does not use distribution channels. · Each product may take days to finish due to customer-built. · Unable to switch supply. · Embarrassments can be caused by the supplier’s mistakes. |
Opportunity | Threat |
· Introducing new products to its range (diversification strategy) to hold market position. · Huge potential opportunities to expand business on the interest by putting products’ information on the website other than physical stores. · Growing demand for the laptops can make Dell grow in other segments. | · Competitive rivalry existed in the PC market globally. · Government policies and bargaining power of suppliers. · Lose some customers who prefer to go to the physical stores. · New entrants to the market pose potential threats. |