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Perot Systems Corporation (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.”

Perot Systems Corporation

Perot Systems Corporation (Perot Systems) is a global provider of information technology (IT) services and business solutions. The company offers integrated solutions designed around specific business objectives, chosen from a breadth of services, including technology infrastructure services, applications services, business process services and consulting services. The company primarily operates in the US. It is headquartered in Plano, Texas and employs 23,100 people.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong position in healthcare business
  • Steady financial performance
  • Contract extensions signify customer satisfaction

Weaknesses

  • Geographic concentration
  • Lack of scale

External

Opportunities

  • Strategic acquisitions
  • Positive outlook for health care IT spending
  • Expanding operations in India

Threats

  • Intense competition
  • Risks related to government contracts
  • Loss of major contracts
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