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Novell (SWOT Analysis)

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“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a company’s strategic situation. The technique is based on the assumption that an effective strategy derives from a sound “fit” between a firm’s internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firm’s strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.”

Novell

Novell is a global infrastructure software and services company. The company offers an interoperable Linux platform and a portfolio of integrated information technology (IT) management software to customers worldwide. The company primarily operates in the US. It is headquartered in Waltham, Massachusetts and employs 4,000 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong open platform solutions
  • Strong partnerships

Weaknesses

  • Declining revenues of the work group segment
  • Weak and fluctuating financial performance

External

Opportunities

  • Strategic acquisitions
  • Growing Linux thin client market
  • Emerging SaaS market

Threats

  • Global economic slowdown
  • Intense competition
  • Renewal of SLES subscriptions
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