SWOT Analysis Hewlett Packard

Ron Thomas, Thomas Enterprises, Indianapolis


Strong Market Position - Recently (April 2010), Hewlett-Packard’s shares closed at $53.15. According to NASDAQ, the stock is up 62% in the past year, better than the market at large. This continues a trend that saw the company ease pass the previous global pc leader Dell in 2006. In 2008 Hewlett Packard led Dell with over 17% of the PC Market while Dell settled for second at 14%. In addition Hewlett Packard can boast of a 30% of the global server market. Its domination of the global printer market is evidenced by its 40% market share. In 2008 Hewlett Packard took a major step in strengthening its position in the IT services market by acquiring EDS. Prominent Brand Name Recognition - Hewlett Packard is keenly aware of the importance of branding. It has long sought to adjust its brand image as required by changing market forces. 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. Although business to business sales continue to prevail, the company seeks to exploit its good relationship with retailers. As a result of this strategy many current consumer products are business models stripped of costly features in order to appeal to the needs and pocketbook of the consumer market.


Hewlett Packard has launched a branding initiative called, “One Voice,” in order to better integrate its line of consumer electronics and computer hardware products. With a fresh design to the packaging, they are striving to on brand across thousands of product lines and dozens of packaging types. The project has resulted in hundreds of thousands of dollars in cost savings by automating package design creation. In addition, the company gained greater consistency in its packaging by providing a system that keeps the company on brand. In 2009 the company moved up from the 12th to the 11th most recognizable brand according to Interbrand.com. Successful Strategic Acquisitions - Hewlett Packard continues its trend of recognizing and capitalizing on strategic acquisitions. The company’s major mergers and acquisitions in recent past include Compaq Computer Corporation in 2002, Mercury Interactive in 2006 and Electronic Data Systems Corporation (EDS) in 2008. In November of 2009, Hewlett Packard announced that it had

outdoor signage. In 2009. Logoworks. HP along with Intel Corporation and Yahoo! created a global. HP Performance Center and HP Business Availability Center.Although Hewlett Packard is currently addressing its lack of presence in some seemingly obvious segments. These solutions are delivered to customers though HP SaaS platform. Weaknesses • Weak Market Segment Integration .7 billion in a deal that H. and graphic arts. open source test bed for cloud computing research and education. The global spending on cloud computing is forecast to cross a value of over $40 billion by 2012 Expanding portfolio of imaging and printing solutions . Accenture. for $2. academy and governments by removing the financial and logistical barriers. from print services solutions to new growth opportunities in commercial printing and capturing high-value pages in areas such as industrial applications. Its imaging solutions strategy entails the commercial markets. Computer networking is a $40 billion-a-year market with high profit margins that is growing briskly and dominated by Cisco. Hewlett Packard has partnered with Thomson eXimius to provide front office processes for private client wealth management firms to support the increasingly sophisticated needs of their customers. multi-data center. both IBM and Accenture are establishing management consulting divisions so as to provide more comprehensive and integrated range of services. MacDermid and ColorSpan. The company’s successful inorganic growth allows it to increase its competitiveness as well as create value for both investors and customers of the company. there remains room for improvement. including HP Application Security Center. HP Cloud Assure consists of HP services and software.reached an agreement to acquire 3Com. For example.P. The goal of the project was to promote collaboration among industry. The increasing demand for cloud computing is likely to create demand for HP’s solutions in coming years. Among those key acquisitions are Tabblo. In July 2008. Opportunities • • Expanding presence in cloud computing market . a provider of computer network equipment. HP has launched several retail photo printing solutions and services that provide consumers the tools to personalize their photos and publish customized creative . The company’s portfolio of offerings lack significant software product or manage consulting services when compared to major competitors including.Cloud computing describes a new delivery model for IT services. plans as a the beginning of an assault on the market leader in networking.Hewlett Packard has made several strategic acquisitions and introduced new products in the imaging solutions segment in recent times. Cisco Systems. a new SaaS offering designed to assist businesses to safely and effectively adopt cloudbased services. HP announced HP Cloud Assure. Recently. which has so far had little head-to-head competition. EMC and IBM.

Xerox Corporation. aspirations and dreams. HP even faces competition from re-manufacturers including private label brand stores. quality. Hyper-competitive environment . HP Latex Inks and three HP Indigo presses. it has introduced new digital printing technologies. Hewlett Packard has experienced this decline not only in the U. it also announced a plan to launch full wireless HP Photosmart printer lineup by 2010. internet vendors and original equipment manufacturers (OEMs) such as Lexmark. Specifically. Worldwide spending on IT was predicted to decline by 4% in 2009. reputation. Samsung Electronics and Dell. continuously improving the way our customers live and work . The economic slowdown has negatively affected many market segments. refill them with their own ink and resell them at a discount to the branded OEMS. distribution and range of products.output. Dell in industry standard servers and Sun Microsystems in UNIX-based servers. and realize their possibilities. as part of its graphic arts offerings. the latter remains a formidable competitor.Although Hewlett Packard recently overtook Dell in sales. valuable and trusted experiences with technology. the company faces competition from local companies and from generically-branded or white box manufacturers. brand. Threats • • Projected decreases in the IT markets . In some regions. We apply new thinking and ideas to create more simple. but also in its global markets. In October 2008. Lexmark International. among other factors. as are other companies such as Toshiba. Lenova Group and Aver. HP is a technology company that operates in more than 170 countries around the world. supply stores such. It competes in terms of price. HP Inkjet Web Press. We explore how technology and services can help people and companies address their problems and challenges. The re-manufacturers buy the original cartridges from customers. Seiko Epson Corporation. These entities provide a continuous source of competition which could impact the profitability of HP. In addition.S. including information technology. technology. The imaging and printing group’s key competitors include Canon USA.Forecasters predict a decrease in the worldwide demand for various IT products offered by HP. the company’s competitors in enterprise servers and storage include IBM an in storage there is the EMC Corporation.

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