DELL CORPORATION’S EXTERNAL FACTOR

EVALUATION MATRIX(EFE MATRIX)

Key External Factors Weight Rating Weighted Score

Opportunities
Dell has large product portfolio. Like as-PC, .15 4 .60
laptop, Storage devices, server, services,
Tablets & Phones. It Has large opportunities to
exploit growing market.
The company has the opportunity to broaden .08 3 .24
its scopes in the new emerging market like
South-Asia, Brazil and Russia
The opportunity for the company is to introduce .10 4 .40
its products through the internet in order to
gain larger market shares and provide
convenient place for the customers in order
place their orders and provide the information.
The company is selling its few products and .15 3 .45
services at lower costs ,It may open new
opportunities on the whole world and also the
rebranding for distributors/resellers helps the
company to capture new market segment.
The growing demand for the Notebook & .10 3 .30
Tablets is the great opportunity for the
company in order to grow new segments in the
market.
Latest merger with EMC Corporation & .03 2 .06
VMWARE , scope to capture more market
share.
Threats
There are more mergers(HP & .04 3 .12
Compaq,Apple&Next) and
acquisitions(Google Bought Motorolla)
happening in the industry – a threat of strong
consolidation trend for Dell.
The high quality products are manufactured by .08 3 .24
the competitors with the low pricing that is the
threat for the company.
Changing market demands for varieties of the .04 2 .08
personal computers is the threat for the
company because new light weight computer
(Ex-Mini PC, AIO PC) appeal more in market.
Trade barriers and hurdles affect the position of .12 4 .36
the company in multiple countries that decline
growth
The rapid increase in the IT advancement .03 3 .09
(Ex-Cloud computing, VR PC, ARM PC) is the
issue which is the opportunity for the company
it improves but on the same hand it is the
threat for the company.
The changes in the exchange rates and .08 4 .32
fluctuations in the market currency leave
the company to the potential losses related to
the distribution of supply chain
.
Total 1 3.26

Findings:
From The Above above calculations, it has been concluded that the company’s Total Weighted Score is 3.26
which shows that to a larger extent company has been successful in utilizing its opportunities and minimizing
the threats around it.