This action might not be possible to undo. Are you sure you want to continue?
Helpful Strengths Strong market position Prominent brand name Strategic acquisition In house development of software and hardware Green technology by managing aging and unwanted computers Opportunities Expanding presence in cloud computing market Expanding portfolio of imaging and printing solutions
Harmful Weaknesses High leverage Flaw in product design Weak market segment integration Weak financial position which is evidenced by massive pay cut Threats Projected decreases in the IT market. Hyper-competitive environment. Less control of global market
(London Roah North End Portsmouth, -) Strengths1. Strong market position
According to businessdictionary.com, strong market position is defined as an effort to influence consumer perception of a brand or product relative to the perception of competing brands or products. Its objective is to occupy a clear, unique, and advantageous position in the consumer’s mind. Hewlett-package’s strong market position can be seen when HP led Dell over 17% of the PC market while Dell settled for second at 14% in 2008. Besides that, HP dominated the global printer market by its 40% market share. In 2008, Ho took a major step in strengthening its position in the IT services market by acquiring EDS. (London Roah North End Portsmouth, -) 2. Prominent brand name recognition Hewlett Packard knew the importance of branding towards the success of HP. In the late nineties, it began to shift its image to encompass more than just the business to business segment making adjustments to increase its presence in the consumer market as well. (London Roah North End Portsmouth, -)A branding launching called “one voice” is initiated to integrate the line of consumer electronic and computer hardware products.
Weakness 1. Weak market segment integration
EMC and IBM. technology. Expanding portfolio of imaging and printing solutions. and graphic arts. Projected decreases in the IT markets. the latter remains a inspiring competitor. open sources test bed for cloud computing research and education. HP Performance Center and HP Business Availability Center. 2. Hyper-Competitive environment. HP announced Ho Cloud Assure. brand.S and global market. (Caroline. The company’s competitors in enterprise servers and storage include IBM an in storage there is the EMC Corporation. lenovaGroup and Aver. distribution and range of products. quality. defensive or competitive strategies are most appropriate for a given enterprise or company. including HP Application Security Center. Hewlett Packard has made several strategic acquisitions and introduced new products in the imaging solutions segment in recent times. 2.Although Hewlett-Packard is solving its lack of presence in some seemingly obvious segments. from print services solutions to new growth opportunities in commercial printing and capturing high-value pages in areas such as industrial applications. The axes of the SPACE matrix represent the two internal dimension of a company which are competitive advantage (CA) and financial stability (FS) and two external dimensions which are environmental stability (ES) and industry strength (IS). The company lack notable software product or manage consulting services when compared to major competitors including. The increasing demand for Cloud Computing is likely to create demand for HP’s solutions in coming years. Opportunities 1. The global spending on cloud computing is forecast to cross a value of over $ 40 billion by 2012. reputation. Forecasters predict a decrease in the worldwide demand for various IT products offered by HP. Its imaging solutions include the commercial markets. outdoor signage. Threats 1. Accenture. -). Worldwide spending on IT was predicted to decline by 4% in 2009 (London Roah North End Portsmouth. Dell in industry standard servers and Sun Microsystems in UNIX-based servers. HP engaged with Intel Corporation and Yahoo ! to create a global. as are other companies such as Toshiba. multi data center. a new Software as a Service (SaaS) to facilitate businesses safely and effectively to embrace cloud based services. Expanding presence in cloud computing market Cloud computing describes a new delivery model for IT services. HP Cloud Assure consists of HP services and software. It competes in terms of price. The economic downturn has seriously affected many market segments including Information technology.. there remains room for improvement. In 2009. HP has experienced a decrease in IT market in U. conservative. The Strategic Position and Action Evaluation (SPACE) The strategic Position and Action Evaluation or the SPACE Matrix is a four-quadrant framework which indicates whether aggressive. 2008) . Although Hewlett-Packard recently overtook Dell in sales.
00 = 8.00 2. -1 best) Market Share 17.61 6 Cash Flow 10.635.33 .17 5 5 25.00 0.970.FS Competitive Advantage Space matrix-X (-6 Worst.40% -2 -6 9.Y (+1 worst.815.org/wiki/Market_share_of_leading_PC_vendors#cite_note-6 Product Malfunction rate 25.10% -3 18.00 6 9.761.01 4 29.62 4 4 Average .3 -4.913.2817.137.00 2 Return on Investment 5.49 5 44.00 1. +6 best) HP Million Ranking Dell Million Ranking Apple Million Ranking Liquidity 51.50% -1 http://en.483.20% -2 12.20% -1 -4.33 -1.60% -5 18.922.00 4 13.80% -6 7.00 0.00 27.Financial Srength In the Space Matrix.80% file:///C:/Users/LEE/Desktop/0.988.00 19.htm Average-CA -4 17.com/2009/11/17/laptop-reliability-survey-asus-and-toshiba-win-hp-fails/ Customer Loyalty/ SATISFACTION 7.30% http://www.engadget.00 = 50.asp.442.021.wikipedia.00 = 1.00 = 0.929.2400794.0006 6 5 452.00 = 16.021.00 = 1.00.
HP can increase its research and development efforts as the technology of HP is less innovative compared to Apple which is excellent in innovation.00 External Strategic Position Industry Strength (IS) Growth Potential Profit Potential Labour Cost Average 5 5 4 4. . it can eliminate its competitors by merging with other mega computer company thus improve the survivability of HP. HP needs to develop unique technology for its product series.00 Environmental Stability (ES) Pressure from Substitutes Barriers to Entry Rate of Inflation Average -5 -4 -2 -3.Internal Strategic Position Competitive Advantage (CA) Product Quality Customer Loyalty Market Share Average -5 -6 -1 -4. 2011) Figure 1 According to SPACE matrix above.70 Total Y-axis Score= 1.70 Total X-axis Score = 0. 2011). Thus. SPACE Analysis recommends that business in such a strong position take the following actions: (a) Grow within the market through acquisition (Simister. HP is located in the aggressive quadrant. 2011). This can be observed when HP successfully acquire computer companies like Compaq. (b) Continue to invest in innovation to sustain and build the competitive advantage (Simister.30 (Simister.75 Financial Strength (FS) Liquidity Cash Flow Return On Investment Average 4 4 6 5.
SPACE Analysis. Therefore. 2012). it should be economies of scale strategy to produce products in large quantity at the lowest cost. To improve their financial structure. 2012. September 1). Retrieved March 26. The Space Matrix Explained.(c) Raise the stakes for other competitors to play the game. . This may be through reducing prices to levels that competitors find difficult to match. HP can issue IPO to finance its expansion so that its capital is not dominated by debt. 2012.co. Jun 6). from http://www. The high leverage ratio increase the solvency risk and interest cost to HP. from http://www. (d) Get feedback from customers.html# Simister. with the company's combined sales of 15. Retrieved March 26. Since HP used to be the world’s largest technology vendor in term of sales. (2008. cultural and management may differ across countries. Since HP is a multinational company. (2012). respectively.marketingteacher. (2011.uk/space-analysis-strategic-position-and-actionevaluation-matrix . Lenovo. Record-setting earnings for the December quarter put Apple ahead of HP as the world's number one PC vendor.4 million iPads and 5.html London Roah North End Portsmouth. HP can incorporate customer feedback in its product development to better understand the needs of the customers.uk/detailed/Education/The_SPACE_MATRIX_Explained_201490.co. (-. Apple's top performance was followed by HP. Dell and Acer.com/swot/hewlett-packard-swot.uk: http://www. from Pressbox. (e) Restructure their financial management.Strategic Position and Ac.-). 2012. (Apple Insider. Bibliography Apple Insider. P.2 million Macs. Retrieved March 22. SWOT AnalysisnHewlett Packard.pressbox.co.differentiateyourbusiness. Caroline.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.