SWOT ANALYSISTo be able to look analytically into the internal affairs of a firm one must outline the strengths and weaknesses as well as the opportunity and threats. STRENGTHSStrengths are internal resources and capabilities that have the potential to be core competencies. DELL’s core competencies are their cost strategy.
In consistent to being an integrated cost leader, DELL also produce high quality PCs by using their Direct Business Model approach and sells them directly to the customers. With this innovative process, DELL cuts out the intermediary, excluding the associated cost as the company can understand the customers’ needs better and can provide the most effective computing solutions to meet those needs. The business environment of the DELL is very good. DELL also has achieved the ISO 14001 Environmental Management System (EMS). DELL aims at product design, transportation and so on. As a part of DELL’s ISO 14001 EMS, the organization implemented goals where by the goal is to improve internal business environment performance in a continuous improvement processes which are used to share successes throughout the company.
DELL has positioned to extend its brand name beyond mainstream computer products by leveraging its reputation as an e-commerce leader.
DELL recognized that its strength was selling directly to consumers and keeping its costs lower than those of other hardware vendors. DELL began to redefine itself as the company that knows how e-business works. It has shared its online sales expertise with a few large customers as they developed their own e-commerce capabilities.
StrategicHigh PotentialApplication which are critical to achieving future business strategyApplication which may be important in achieving future business successKey OperationalSupportApplication upon which the organization currently depends for success. Applications which are valuable but not critical to business success. Source: (Edwards et al., 1995).