SWOT ANALYSIS

SWOT Analysis

SWOT analysis of Dell Computers

History:

The company was founded in 1984 by Michael Dell, now the computer industry's longest-tenured chief executive officer, on a simple concept: that by selling personal computer systems directly to customers, Dell could best understand their needs, and provide the most effective computing solutions to meet those needs. Today, Dell is enhancing and broadening the fundamental competitive advantages of the direct model by increasingly applying the efficiencies of the Internet to its entire business. Company revenue for the last four quarters totaled $19.9 billion.

Through the direct business model, Dell offers in-person relationships with corporate and institutional customers; telephone and Internet purchasing (the latter now exceeding $18 million per day); customized computer systems; phone and online technical support; and next-day, on-site product service.

Dell arranges for system installation and management, guides customers through technology transitions, and provides an extensive range of other services. The company designs and customizes products and services to the requirements of the organizations and individuals purchasing them, and sells an extensive selection of peripheral hardware and computing software.

Nearly two-thirds of Dell's sales are to large corporations, government agencies and educational institutions. Dell also serves medium and small businesses and home-PC users.

Internet Leadership

Sales via Dell's Web site surpassed $18 million per day during early 1999, accounting for 30 percent of overall revenue. The company's application of the Internet to other parts of the business --including procurement, customer support and relationship management -- is approaching the same 30-percent rate. The company's Web received 25 million visits at more than 50 country-specific sites last quarter.

Industry Outlook

While the personal-computing market has expanded dramatically since the 1970s, Dell believes that the industry's best days and its own are yet to come, for two broad reasons.

First, the stream of software and hardware innovation from companies such as Microsoft Corp. and ...