SWOT Analysis Of VMware analyzes, VMware, Inc. is an information technology (IT) company. The Company is engaged in development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware. VMware allows businesses to run multiple application and operating system workloads on the one server – thus enabling better resource management. By creating a virtual machine that behaves exactly like an actual computer – VMware also allows everything running on that virtual machine to run in its own window.
Did you know?VMware’s annual advertising budget is more than Instagram’s annual opex budget.
Twenty years ago, on the 10th of February in 1998, VMware was founded by a couple of friends, a few of who met at Berkeley university. Diane Greene, Mendel Rosenblum, Scott Devine, Ellen Wang and Edouard Bugnion started the company with the idea that computing should be more efficient. VMware’s brand image is absolutely consistent with its internal company culture. The values of innovation, positive leadership and respect are present throughout the business.
This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by VMware.
VMware At A Glance – VMware SWOT Analysis
Company: Michael S. Dell
Founders: Diane Greene | Scott Devine | Mendel Rosenblum | Edouard Bugnion | Edward Wang
Year of establishment: 1998, Palo Alto, California, United States
CEO: Rangarajan Raghuram
Headquarters: Palo Alto, California, United States
Employees (Dec 2020): 31,000
Ticker Symbol: VMW
Annual Revenue (Dec 2020): US$11.77 Billion
Profit net income (Dec 2020): US$2 Billion
Products & Services: VMware vSphere | VMware ESXi | VMware Fusion | VMware Player | VMware ThinApp | VMware View | VMware Infrastructure
Company Website: www.vmware.com
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VMware SWOT Analysis – SWOT Analysis Of VMware
SWOT Analysis Of VMware analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With VMware SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about VMware SWOT Analysis. Below Is The Detailed SWOT Analysis Of VMware.
VMware Strengths – VMware SWOT Analysis
- Proven track record of creating innovative products and services.
- A robust distribution network the years, VMware, Inc. has developed a solid distribution network that has the capacity to reach most of its market.
- Outstanding performance on New Markets – VMware, Inc. has acquired an expertise in entering new markets and achieving success of these. This expansion has enabled the company create a new revenue streams and diversify risk of the economic cycle within the markets it is operating in.
- Very successful in It has been extremely successful in its Go To Market strategy in its merchandise.
- Reliable suppliers It has a solid foundation of reliable suppliers of raw materials. This allows the company to get around any bottlenecks in the supply chain.
- A Strong Cash Flow VMware, Inc. has high free cash flow which allow the hands of the company to grow into new ventures.
- Highly skilled workforce with the help of efficient learning and training programs. VMware, Inc. is investing massive resources in the training and developing its employees. This results in employees who are not just highly skilled, but also motivated to strive for more.
- A strong dealer community has developed a positive culture among dealers and distributors where dealers do not just promote the their products, but also train the sales staff to show the client how they can get the most benefit from the product.
VMware Weaknesses – VMware SWOT Analysis
- A limited success outside of the core business. Despite the fact that VMware, Inc. is one of the most prominent companies in its industry , it has been challenged when it comes to implementing other product areas in its current culture.
- Days inventory is very high compared to competitors, which makes the company increase its capital investment into the channels. This may have a negative impact on the development that VMware, Inc.
- A high rate of attrition in the employees – in comparison to other companies in the field VMware, Inc. has higher rates of attrition. They also need to invest more than its rivals in training and developing its employees.
- The investment on Research and Development is below the top performers in the field. While VMware, Inc. is spending more than the average for Research and Development, it hasn’t been able to compete with the top companies in regards to technological innovation. It is portrayed as an established firm that is eager to release products based on proven technologies that are available on the market.
- The financial planning process isn’t executed properly and effectively. The current ratio of asset to liquid asset ratios suggest the business could use the cash more effectively than it does currently.
- The way in which the product was promoted left much to be wanted. Although the product may be successful in terms of sales, its positioning and distinctive selling point isn’t well-defined, which could lead to attacks on this market from competitors.
- More investment is needed in new technologies. Due to the magnitude of expansion and the different regions the company plans to enter, VMware, Inc. should invest more in technology that will allow it to integrate processes across all of its departments. At present, the investment in technology isn’t at in line with the plans of the business.
VMware Opportunities – VMware SWOT Analysis
- The latest technology offers the opportunity for VMware, Inc. to utilize a different pricing strategy in the emerging market. It will help the company to keep its loyal customers by providing excellent service, and also attract new customers with other propositions that are value-based.
- New customers are coming from the online channels – In the last few years, VMware has invested an enormous amount of cash into the platform online. This investment has created a new sales channel that is owned by VMware, Inc.. In the coming years the company will benefit from this opportunity by understanding the needs of its customers and addressing their needs through massive data analytics.
- A new environmental policy – The opportunities will result in an even playing field to participants in the market. It is an excellent chance to VMware, Inc. to increase its competitive advantage through the latest technology and increase sales in the emerging product segment.
- Lower inflation rate. The low inflation rate will bring security to the market, allow credit with a lower interest rate for clients from VMware, Inc..
- Recent trends in consumer behavior could open up new markets for VMware, Inc. . It is a wonderful opportunity for the company to create new revenue streams, and expand into different product lines as well.
- The growth in the market can result in the dilution of the competitive advantage and allow VMware, Inc. to enhance its competitiveness compared to other competitors.
- The opening of new markets due to a government agreement the adoption of a new technological standard and the government’s freedom of trade agreements has offered VMware, Inc. an opportunity to join an emerging market.
- The reduction in transportation costs because of lower shipping costs can lower the cost of VMware Inc.’s products, thereby providing an opportunity for the business to increase its profit margins or pass the advantages to customers in order to increase market share.
VMware Threats – VMware SWOT Analysis
- The rising cost of raw materials could pose an issue for VMware, Inc.’s profitability.
- The laws governing liability in different countries differ as well. VMware, Inc. may be liable to a variety of liability claims due to the changes in market policies.
- Stable profit has led to an increase in the number of companies operating in the sector over the past two years, which has put pressure not just on profit but also on overall sales.
- The company may be sued in different markets due to various laws and constant changes about the standards for products in these markets.
- The demand for high-profitable products is seasonal and any event that is not expected to occur during the peak season could affect the financial performance of the business in the short to medium-term.
- The changing buying habits of consumers from the online channels could pose a threat to the physical infrastructure-driven supply chain.
- The shortage of skilled workers in certain markets around the world is an obstacle to the steady growth in the profits of VMware, Inc. in these markets.
- Impersonation of counterfeit products and of low quality could be a risk to VMware Inc.’s product, particularly in market of emerging and low-income markets.
This is the SWOT report that VMware has done. Please let us know if you have additional suggestions to add.
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