HP – Hewlett Packard SWOT Analysis

Strengths

Hewlett-Packard’s primary strength is its business position. The enterprise has a large amount of cash in hand about $10 billion.

Hewlett-Packard is a global enterprise and especially after its merger with Compaq, the company became world’s biggest computer hardware and peripherals consort in the world and has ranked 20th in the Fortune 500 list.

Hewlett Packard is operating in more than 170 countries including both developed as well as under-developed.

Being a global dealer of computer hardware, it gives HP many advantages like dominating printers market, both laser and inkjet. The company attracts and focuses on consumers from even newly found markets all around the world, multinational corporations, non-governmental organizations etc.

The company compete both at local and international level. It has increased its competitiveness through policies and strategies that supports free-market economies. This is one of the reasons that make HP a leading supplier in the growing IT markets.

Hewlett Packard is said to have a complete product portfolio.

Weaknesses

The company was in a long term debt for many years which kept it from investing in different growth opportunities.
A major problem and complaint about the hardware supplies of HP is its touch pads. The touch pads of the notebooks of Hewlett Packard like the dv series, dm3, and Envy lines needs improvement. These touch pads are either finicky, unreliable, or are difficult to use because of friction.

The mouse buttons on various HP supplied machines are said to be clumsy to use, too.  Poor shelling life of HP products plagued some mainstream systems and net books.

When it comes to Software that HP provides there are also some weaknesses. Some heavy software’s were paired with slow hardware like Touch Smart.

The past acquisition of Peregrine made the HP’s portfolio even more diverse and complete but HP Open View’s lack of mainframe management capabilities created several problems. Another weakness was that it did not yet hit a CMDB product that includes discovery and mapping. This cause many customers to switch the brand.

Opportunities

The recent acquisition of EDS puts HP at a strong position in the computer market and makes it portfolio more impressive.

Hewlett-Packard was able to generate large number of revenues and profits from its different deals and raised more than six billion which it can use to pay off its debts as well as invest in different research and development activities.

If the products by the company are supplied at reasonable prices, there will be more chances of growth as the demand would increase.

The company has formed Customer Solutions Group that helps in selling the complete IT solutions, products and services by HP.

Threats

Operating in global market means many competitors and therefore, the company has to be at the forefront of changing technologies as well as addressing the changing customer demands and needs.

The global economic recession is also a threat for the company’s sales and profits. The prices have also fallen as the stock markets are at historic low positions.

Many other competitors including Dell are entering the printer business whereas IBM has become a market leader.

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