Pc Connection

To connect people with technology by being the most trusted and indispensable IT solutions provider for every organization.

Pc Connection SWOT Analysis

Updated: October 2, 2025 • 2025-Q4 Analysis

How to Use This Analysis

This analysis for Pc Connection was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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This Pc Connection SWOT analysis reveals a resilient and profitable company at a critical inflection point. Its core strengths—customer relationships, vendor partnerships, and operational discipline—provide a stable foundation. However, to achieve its vision, it must aggressively address its primary weaknesses: a hardware-centric revenue model and lower brand recognition. The path forward is clear: leverage its trusted position to pivot decisively into high-margin services. The immense opportunities in AI, cloud, and security are not just growth avenues; they are existential imperatives to counter the threats of margin compression and disintermediation. The company's future will be defined by its ability to transform its sales culture and service capabilities from a reliable reseller into an indispensable technology partner, fully capitalizing on its established market access.

CDW Corporation Insight Enterprises SHI International Corp. ePlus Presidio

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To connect people with technology by being the most trusted and indispensable IT solutions provider for every organization.

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Strengths

RELATIONSHIPS: Deep, tenured account management with high customer loyalty
PARTNERSHIPS: Top-tier status with key vendors like Microsoft, HP, Cisco
LOGISTICS: Efficient distribution and supply chain mastery honed over 40yrs
DIVERSIFICATION: Balanced revenue across SMB, Enterprise & Public Sectors
FINANCIALS: Consistent profitability and a strong, debt-free balance sheet

Weaknesses

MARGINS: Thin gross margins (~18%) typical of reselling are a headwind
BRANDING: Lower brand recognition compared to larger competitors like CDW
SERVICES: Services revenue mix still lags industry leaders, hardware focus
INNOVATION: Perception as a reliable implementer, not a cutting-edge leader
SCALE: Lacks the immense global scale and purchasing power of top rivals

Opportunities

SERVICES: Cross-sell high-margin services to vast hardware customer base
AI: Huge demand for AI infrastructure, software, and advisory services
CLOUD: Accelerate growth in cloud managed services and hybrid IT solutions
SECURITY: Rising cyber threats create strong, non-discretionary spending
VERTICALS: Deepen specialization in high-growth verticals like healthcare

Threats

COMPETITION: Intense price and service rivalry from CDW, Insight, and SHI
ECONOMY: Cyclical IT spending slowdowns impacting hardware refresh cycles
DISINTERMEDIATION: Cloud marketplaces and direct-from-OEM sales models
SUPPLY: Potential for future global supply chain disruptions for hardware
TALENT: War for certified cloud, security, and AI engineering talent

Key Priorities

SERVICES: Accelerate the shift to a services-led sales and delivery model
SOLUTIONS: Double down on high-growth solutions like AI and Cybersecurity
MID-MARKET: Sharpen focus on winning share in the underserved mid-market
EFFICIENCY: Drive operational efficiency to fund investments in services

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Pc Connection OKR

Updated: October 2, 2025 • 2025-Q4 Analysis

This PC Connection OKR plan is a masterclass in strategic focus. It translates the SWOT's existential challenges into a clear, actionable roadmap for transformation. The objectives to 'ACCELERATE SERVICES' and 'WIN WITH AI' directly attack the core weakness of hardware dependency, pushing the company toward a more profitable, defensible future. 'DOMINATE MID-MARKET' wisely focuses resources on the segment where its high-touch model provides the greatest competitive advantage. Finally, 'DRIVE EFFICIENCY' provides the necessary fuel for these ambitious investments. This isn't just a plan; it's a declaration of a new identity—moving from a reseller to an indispensable technology partner. The execution of this plan will define Connection's next decade.

CDW Corporation Insight Enterprises SHI International Corp. ePlus Presidio

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To connect people with technology by being the most trusted and indispensable IT solutions provider for every organization.

ACCELERATE SERVICES

Transform our business into a high-margin, services-led engine.

PROFIT MIX: Increase the percentage of total gross profit derived from services from 35% to 45% this year.
ATTACH RATE: Achieve a 60% services attach rate on all complex infrastructure and security solution sales.
SALES: Launch a new incentive plan that over-weights compensation for recurring revenue and services bookings.
TRAINING: Certify 150 account managers and solution architects in our core cloud and security offerings.

WIN WITH AI

Become the go-to partner for AI adoption in the mid-market.

PIPELINE: Generate $50M in new, qualified AI-related opportunity pipeline, focusing on infrastructure & Copilot.
TALENT: Hire 15 new AI Solution Architects and Data Consultants to build out our core delivery practice.
SERVICES: Launch and sell 100 'AI-Readiness Assessment' packages to our existing mid-market customer base.
PARTNERSHIP: Achieve top-tier partner status in the NVIDIA and Microsoft AI partner programs for 2025.

DOMINATE MID-MARKET

Be the undisputed IT solutions leader for mid-market companies.

NEW LOGOS: Acquire 250 new mid-market customers with over $50k in annual potential spend this fiscal year.
WALLET SHARE: Increase our share of wallet by 20% within our top 100 existing mid-market accounts.
MARKETING: Execute three targeted demand generation campaigns focused on mid-market cybersecurity and cloud pain points.
SATISFACTION: Achieve a Net Promoter Score (NPS) of 60+ specifically within the mid-market customer segment.

DRIVE EFFICIENCY

Fuel growth investments through operational excellence and scale.

AUTOMATION: Reduce the average time from quote-to-order by 30% through process automation and CPQ tool adoption.
OPEX: Maintain operating expenses as a percentage of gross profit below the targeted 75% threshold.
DATA: Build a unified customer data dashboard to provide account managers with real-time cross-sell insights.
INVENTORY: Improve inventory turns by 15% in our distribution centers through better forecasting models.

METRICS

Annual Gross Profit Growth: 10%
Services as % of Gross Profit: 45%
Net New Mid-Market Logos: 250

VALUES

Customer Obsession
Deep Expertise
Unwavering Integrity
One Team

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Pc Connection Retrospective

AI-Powered Insights

Claude

Gemini

GPT

PC Connection Q1 2024 Earnings Report and Press Release
PC Connection Investor Relations Website (ir.pcconnection.com)
Yahoo Finance for CNXN financial data and market capitalization
Competitor analysis of CDW and Insight Enterprises public filings
Gartner and Forrester reports on the IT Value-Added Reseller market
PC Connection company website for leadership and solutions information

CDW Corporation Insight Enterprises SHI International Corp. ePlus Presidio

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To connect people with technology by being the most trusted and indispensable IT solutions provider for every organization.

Toggle Theme

What Went Well

MARGINS: Gross margin percentage expanded to 18.3% due to services mix
SERVICES: Strong performance in cloud, networking, and security solutions
CASHFLOW: Generated solid cash from operations despite revenue decline
BALANCE SHEET: Maintained a strong, flexible balance sheet with minimal debt
PUBLIC SECTOR: Saw pockets of strength in the public sector customer segment

Not So Well

REVENUE: Net sales declined 10.8% year-over-year, missing expectations
ENDPOINTS: Significant softness in sales of endpoint devices (PCs, laptops)
ENTERPRISE: The enterprise segment showed the largest revenue contraction
MACRO: Faced a challenging macroeconomic environment with cautious IT spend
GUIDANCE: Did not provide explicit forward guidance, indicating uncertainty

Learnings

PIVOT: The strategy to pivot to services is working and protecting profits
MARKET: The device refresh cycle has slowed, impacting transactional sales
DIVERSIFICATION: A diverse portfolio is key to weathering segment downturns
EFFICIENCY: Cost control and operational efficiency are critical in this climate
DEMAND: Demand is shifting from general hardware to strategic IT projects

Action Items

EXECUTION: Continue to execute on the shift to higher-margin solutions
TRAINING: Enable sales teams to better sell complex cloud/security services
INVESTMENT: Prudently invest in technical resources for high-growth areas
COSTS: Maintain disciplined expense management across the organization
PARTNERS: Deepen alignment with key partners in cloud, security, and AI

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Pc Connection Market

AI-Powered Insights

Claude

Gemini

GPT

PC Connection Q1 2024 Earnings Report and Press Release
PC Connection Investor Relations Website (ir.pcconnection.com)
Yahoo Finance for CNXN financial data and market capitalization
Competitor analysis of CDW and Insight Enterprises public filings
Gartner and Forrester reports on the IT Value-Added Reseller market
PC Connection company website for leadership and solutions information

Founded: 1982
Market Share: Estimated 1-2% of the highly fragmented NA IT solutions market.
Customer Base: SMB, Mid-Market, Enterprise, and Public Sector (Gov/Edu/Healthcare).
Category:
IT Solutions Provider
SIC Code: 5045 Computers and Computer Peripheral Equipment and Software
NAICS Code: 423430 Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Location: Merrimack, New Hampshire
Zip Code: 03054
Congressional District: NH-1 MANCHESTER
Employees: 2600

Competitors

CDW Corporation Request Analysis

Insight Enterprises View Analysis

SHI International Corp. Request Analysis

ePlus View Analysis

Presidio Request Analysis

Products & Services

No products or services data available

Distribution Channels

Pc Connection Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

PC Connection Q1 2024 Earnings Report and Press Release
PC Connection Investor Relations Website (ir.pcconnection.com)
Yahoo Finance for CNXN financial data and market capitalization
Competitor analysis of CDW and Insight Enterprises public filings
Gartner and Forrester reports on the IT Value-Added Reseller market
PC Connection company website for leadership and solutions information

Problem

IT complexity slows business innovation
Internal IT teams are resource-constrained
Keeping pace with technology is difficult
Managing cybersecurity risks is overwhelming

Solution

End-to-end IT lifecycle management
Expert technology consulting & services
Simplified procurement and logistics
Access to a vast portfolio of solutions

Key Metrics

Gross Profit Dollar Growth
Services as a % of Gross Profit
New Customer Acquisition (Logos)
Customer Retention Rate

Unique

40+ years of proven operational excellence
High-touch, dedicated account managers
Vendor-agnostic, customer-first approach
Deep expertise across all major tech stacks

Advantage

Long-term, trusted customer relationships
Highest-tier vendor partnership levels
Robust, scaled supply chain infrastructure
Strong balance sheet and financial stability

Channels

Direct outside sales force
Inside sales teams
E-commerce website and punch-out catalogs
Partner-led referrals

Customer Segments

Small & Medium Business (SMB)
Mid-Market Enterprises
Large Enterprises
Public Sector (Government, Education)

Costs

Cost of Goods Sold (Hardware, Software)
Sales & Marketing expenses (Commissions)
General & Administrative (Salaries, Ops)
IT & Distribution Center overhead

Pc Connection Product Market Fit Analysis

Updated: October 2, 2025

Connection provides technology solutions that simplify IT complexity, solve critical business challenges, and secure your future. By designing, delivering, and supporting the right technology, it empowers organizations to enhance growth, elevate productivity, and innovate with confidence, freeing them from the day-to-day burden of IT management and allowing them to focus on achieving their core mission objectives.

Simplify Technology: We cut through complexity so you can focus on your business.

Solve Business Challenges: We deliver technology solutions that drive real outcomes.

Secure Your Future: We provide the expertise to help you innovate confidently.

Before State

Complex, multi-vendor IT procurement
Overwhelmed internal IT teams
Reactive approach to technology issues
Struggling to adopt new technologies

After State

Simplified, strategic IT sourcing
Empowered IT with expert partners
Proactive technology lifecycle plan
Innovation through modern IT solutions

Negative Impacts

Wasted time on vendor management
Security vulnerabilities and downtime
Higher total cost of ownership (TCO)
Falling behind more agile competitors

Positive Outcomes

Reduced procurement complexity and cost
Enhanced security posture and uptime
Predictable IT budgets and lower TCO
Accelerated business growth via tech

Key Metrics

Customer Retention Rates

~90% for top accounts

Net Promoter Score (NPS)

Estimated 45-55 range

User Growth Rate

Measured by new logo acquisition, ~3-5% annually

Customer Feedback/Reviews

4.8 stars on G2 (100+ reviews)

Repeat Purchase Rates

High, >85% of revenue from existing customers

Requirements

Deep assessment of current IT state
Trusted advisor relationship building
Access to broad tech portfolio
Expert implementation services

Why Pc Connection

Dedicated, expert account managers
Solutions architects and engineers
Robust e-commerce & logistics engine
Lifecycle and managed services teams

Pc Connection Competitive Advantage

40+ years of trusted relationships
Vendor-agnostic, best-fit solutions
Scale of a large corp, touch of a local partner
End-to-end IT lifecycle management

Proof Points

90%+ retention of top spending accounts
Highest-tier partner status with key vendors
Thousands of technical certifications held
Decades of profitability and stability

Pc Connection Market Positioning

AI-Powered Insights

Claude

Gemini

GPT

PC Connection Q1 2024 Earnings Report and Press Release
PC Connection Investor Relations Website (ir.pcconnection.com)
Yahoo Finance for CNXN financial data and market capitalization
Competitor analysis of CDW and Insight Enterprises public filings
Gartner and Forrester reports on the IT Value-Added Reseller market
PC Connection company website for leadership and solutions information

Strategic pillars derived from our vision-focused SWOT analysis

Shift gross profit mix to high-margin solutions

Win #1 share in 500-5000 employee companies

Leverage data/AI to drive efficiency & scale

Deepen strategic alignment with key tech partners

What You Do

Designs, delivers, and supports IT solutions for business.

Target Market

Organizations needing a partner to manage IT complexity.

Differentiation

High-touch, tenured account management
Deep technical expertise across major OEM ecosystems

Revenue Streams

Hardware product margins
Software licensing fees
Professional & managed services contracts

Pc Connection Operations and Technology

AI-Powered Insights

Claude

Gemini

GPT

PC Connection Q1 2024 Earnings Report and Press Release
PC Connection Investor Relations Website (ir.pcconnection.com)
Yahoo Finance for CNXN financial data and market capitalization
Competitor analysis of CDW and Insight Enterprises public filings
Gartner and Forrester reports on the IT Value-Added Reseller market
PC Connection company website for leadership and solutions information

Company Operations

Organizational Structure: Segmented by customer type: Business, Enterprise, Public Sector.
Supply Chain: 2 distribution centers; strong API integration with distributors.
Tech Patents: Focus on service delivery methods, not proprietary tech patents.
Website: https://www.connection.com

Top Clients

Board Members

Pc Connection Competitive Forces

Threat of New Entry

MODERATE: Entering at scale requires huge capital and vendor relationships. However, barriers are low for niche, specialized MSPs to start.

Supplier Power

HIGH: Highly dependent on a few powerful suppliers like Microsoft, HP, Dell, and Cisco who control pricing, programs, and availability.

Buyer Power

MODERATE to HIGH: Customers can easily price-shop commodity products. Large enterprise/govt clients have significant leverage to demand discounts.

Threat of Substitution

MODERATE: Customers can opt to buy direct from manufacturers, use cloud marketplaces, or build larger in-house IT teams instead of outsourcing.

Competitive Rivalry

HIGH: Intense rivalry from larger players (CDW, Insight) and thousands of smaller VARs/MSPs competing on price and specialization.

Analysis of AI Strategy

Updated: October 2, 2025 • 2025-Q4 Analysis

The Pc Connection AI SWOT analysis underscores a pivotal opportunity balanced on a knife's edge. The company's greatest asset is its incumbency—unparalleled access to a customer base now hungry for AI. This, combined with premier partnerships with NVIDIA and Microsoft, creates a powerful right to win. However, this potential is constrained by a significant internal talent and services gap. The immediate threat is not a lack of market demand, but the risk of being outmaneuvered by more agile, AI-native competitors or larger rivals who are investing more aggressively. The strategic imperative is clear: rapidly bridge the expertise gap through targeted hiring and training, and productize AI services for the mid-market. Success hinges on transforming from an AI hardware provider to a trusted AI solutions advisor before the window of opportunity closes.

CDW Corporation Insight Enterprises SHI International Corp. ePlus Presidio

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To connect people with technology by being the most trusted and indispensable IT solutions provider for every organization.

Strengths

ACCESS: Existing relationships with thousands of customers to sell AI into
PARTNERS: Top-tier status with AI leaders like NVIDIA, Microsoft, and Google
DATA: Decades of customer purchasing data to predict AI adoption needs
TRUST: Established reputation as a reliable implementer of complex tech
LOGISTICS: Ability to procure and deliver high-demand AI hardware at scale

Weaknesses

TALENT: Shortage of in-house AI/ML engineers and data science consultants
SALES: Current account managers lack deep expertise to sell AI solutions
BRAND: Not perceived as a thought leader in the artificial intelligence space
SERVICES: Limited portfolio of proprietary AI professional service offerings
SPEED: Slower to develop and market new AI solutions than nimble startups

Opportunities

INFRASTRUCTURE: Massive demand for NVIDIA GPUs and AI-ready servers/storage
COPILOT: Huge opportunity to sell and implement Microsoft 365 Copilot
MID-MARKET: This segment is underserved and needs partners for AI adoption
DATA: Offer services to help clients prepare their data for AI/ML models
VERTICAL AI: Develop specialized AI solutions for healthcare or finance

Threats

COMPETITORS: CDW and Insight are investing heavily in their own AI practices
CONSULTANCIES: Global SIs and boutique AI firms targeting enterprise clients
DIRECT: OEMs like Dell and HP are building direct AI solution capabilities
TALENT DRAIN: Losing any nascent AI talent to higher-paying tech companies
COMPLEXITY: Reputational risk from failed or underwhelming AI implementations

Key Priorities

TALENT: Aggressively hire and train a core team of AI solution architects
PARTNERSHIPS: Build a go-to-market plan around Microsoft Copilot & NVIDIA
SERVICES: Develop a packaged AI-readiness assessment service for mid-market
MARKETING: Launch a campaign to establish credibility in AI solutions

Create professional SWOT analyses in minutes with our AI template. Get insights that drive real results.

Get Free SWOT Analysis Template

Pc Connection Financial Performance

AI-Powered Insights

Claude

Gemini

GPT

PC Connection Q1 2024 Earnings Report and Press Release
PC Connection Investor Relations Website (ir.pcconnection.com)
Yahoo Finance for CNXN financial data and market capitalization
Competitor analysis of CDW and Insight Enterprises public filings
Gartner and Forrester reports on the IT Value-Added Reseller market
PC Connection company website for leadership and solutions information

Profit: $91.2 million Net Income (TTM as of Q1 2024)

Market Cap: $1.71 billion (as of late 2024)

Stock Performance

Annual Report: View Report

Debt: $11.1 million total debt (as of Q1 2024)

ROI Impact: ROI linked to customer IT efficiency, cost savings, and risk reduction.

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Market Challenger

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Connection has a solid foundation and a clear, achievable vision (Category-shaping). Its OKRs directly address key weaknesses, boosting achievability. However, the SWOT is balanced, with significant competitive threats capping the score. The AI leverage is strong but hampered by a current talent gap. The growth multiplier reflects a company in a mature market, where growth comes from share capture and strategic pivots rather than pure market expansion. The path to a higher index requires successful execution of the services and AI transformation.

SWOT Factors

Upside: 83.3 Risk: 80.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

Accelerate services mix shift to boost margins and valuation

Win the AI implementation race in the underserved mid-market

Build a brand synonymous with consulting, not just reselling

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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