Before any invest in any company or acquisition of a company, we are trying to find out the SWOT analysis of a company.Here we will discuss the SWOT analysis of Hewlett Packard or HP.
SWOT analysis of Hewlett Packard or HP has four terms:
Strengths in the SWOT Analysis of Hewlett Packard or HP
- Hewlett Packard (HP) has a strong brand equity and the present market value would be 19.3 billion dollars which are higher than any other consumer durable segment. HP ranked top 100 ranked brands in the world.
- HP is selling two PC and two printers in every second. They are now in the second position for shipping PC equipment in the world. HP grab the 20% of total market share. On the other hand, they hold 40.5% in the printer market. Actually, they are dominating the hardware market.
- HP is well positioned in the industry because of the Chinese incremental growth rate. The company is trying to expand their product and service offerings, exclusively their enterprise business and services divisions. They are trying to position in the market in a strong competitive advantage for future business.
- Hewlett Packard(HP) is renowned as the marketer. Smart marketing is the reason for their success.
- Hewlett Packard has created products that are differentiated and hi-tech compared to their competitors.
- They have spent $3.5 billion in their research % development in 2015.
Weaknesses in the SWOT Analysis of Hewlett Packard or HP
- They recorded a decrease of 7.3% in revenues compared to FY 2014 was not good for Hewlett Packard and their revenue decreases about 7.3%. Operating profits were also decreased by 23.9% than the last year.
- HP has low competencies in the acquisition of the company. They had written down $8.8 billion value of its book value. They have acquired 50 company in last 10 years. Some of the company add value with HP but most of the acquisition was failed.
- HP is highly depending on revenue from PC, exclusively laptops. The PC’s market will be growing low near future.
- They have a low presence in the tablet market. The tablet market is growing and it is expected to grow to double digits within few years. Their competitor like Microsoft, Samsung, Apple is doing well in tablet industry technology.
Opportunities in the SWOT Analysis of Hewlett Packard or HP
- 3D printing technologies will have a great change in the tech industry and expected to grow higher. Its value will be $30.2 billion by the end of 2022 and CAGR will be 28.5%. 3D printer’s shipment has grown by 103% in 2016.
- Managed Print Services is predicted to become $94.9 billion at the end of 2024 where it was $26.2 billion in 2015.
- The electronics market is going to rise with a CAGR of 2.7% till 2019. The value is anticipated to $299 billion by the end of 2019.
- HP delivers various services like cloud, security, infrastructure, servers, networking and storage which are the most lucrative HP’s businesses at this moment. The company should focus on better growth opportunities and high-profit margins.
- The cloud system market is anticipated to grow at an average of 22% each year, the market is projected to extend $240 billion value. If HP can well position in the growing market they can do better in near future.
- HP’s research and development is expensive to involve to acquire patents from other corporations in the market. They used their free cash to acquire companies holding. With the strengthened patent portfolio, HP is able to compete with the competitor in the market.
Threats in the SWOT Analysis of Hewlett Packard or HP
- The personal computer product line and the printing line is facing a growth decline all over the market.
- In the personal systems segment there are Dell, Apple Toshiba Lenovo, and Samsung and in the printing segment there, are Xerox, Seiko Epson, Canon, Samsung and Brother Industries.
- The demand and popularity of smartphones have taken the PC’s market. That’s why the PC’s market is slowing down. Revenue and shipments both are reducing.
- Rapid changes in the technological market is a great threat for HP. They are under pressure to release new product and services. This is specifically threat for HP as the corporation is already behind its competitors in price, quality, and high-tech advancement for some of the products