Dell SWOT & PESTLE Analysis

Strength

1. Established market presence: Dell has established itself as a strong player with significant presence across several markets. According to the company, it is a strong player in the security market. Dell Security blocked 2.17 trillion Intrusion Prevention System (IPS) attacks in 2015. Dell has been ranked as the leading healthcare IT services provider worldwide. The company also serves all of the 12 top commercial banks in the world. Dell is also a strategic technology supplier to top 10 global airlines. Furthermore, the company serves 99% of Fortune 500 companies. Established market presence provides the company a formidable position. It also provides strong brand recognition enabling Dell to add new clients from existing and new geographies.

2. Broad portfolio of products and services: Dell offers a broad range of IT products, solutions and services. The company's portfolio of IT products includes laptops, desktops, tablets, gaming consoles, workstations, servers and storage devices, networking services, monitors, printers, electronics, PC accessories, and gateways and embedded PCs. Dell's product portfolio also includes servers, networking, and storage. Dell also offers a range of networking products for the enterprise IT environments. Comprehensive product and services portfolio allows the company to provide end-to-end solutions and tap into high value customer base. It also facilitates strong revenue growth and enables Dell to better sustain cyclical downturns.

3. Presence across diversified end markets and geographies: Dell has proactively expanded and diversified its operations and has transformed itself since its inception. The company has focused on positioning itself as a company offering IT products and solutions from originally being a PC brand. This offers Dell access to a larger pool of customer which will enable continuous inflows resulting in strong revenue position.

Weakness

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Opportunity

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Threat

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Political

1. Policies of Trump Administration: Dell Technologies' international operations face many risks and uncertainties, including varied local economic and labour conditions, political instability, changes in the U.S. and international regulatory environments, and the impacts of trade protection measures, tax laws (including U.S. taxes on foreign operations), copyright levies, and foreign currency exchange rates. Any of these factors can hinder the growth and results of Dell Technologies’. There has also been increased trouble between US and China due to North Korea issue; if the problem persists it will affect the supply chain and distribution networks.

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Economic

1. Currency Exchange Rate affecting the Business performance: Dell is getting directly impacted with the currency exchange rate fluctuation, macroeconomic stability and cost of labor and raw material. A recent case being when pound took a plunge it translated into higher PC prices in local currency terms, reducing the affordability of imported hardware and packaged software. The prices have since been increased by more than 10%.

2. Conflict with distributors over product price rise: Dell Technologies' profitability is affected by its ability to achieve favorable pricing from vendors and contract manufacturers. But with Brexit it had no choice but to pass on the price rise on the end consumers and part on the distributors because of which there was less consumer demand. Dell needs to adjust variable costs or otherwise it will affect its profitability. An inability to establish a cost and product advantage, or determine alternative means to deliver value to customers, may adversely affect Dell Technologies' revenue and profitability.

Social

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Technological

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Legal

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Environmental

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