SWOT Analysis on Hewlett Packard
Uploaded by snwboarder on Oct 27, 2011
This essay is a brief SWOT analysis of the electronics company.
I Introduction
Hewlett Packard is a technology company that provides IT infrastructure, personal computing and access devices, and other solutions to a global marketplace.
This paper is a SWOT analysis of the corporation. It concentrates on the PC business unit of the company.
II Strengths
An interview with Mary McDowell, a Senior HP vice president, vice president gives us a great look at the strengths of the company. Hewlett Packard and Compaq merged in 2002, with HP taking over the management of Compaq’s assets. According to McDowell, this gives the PC division tremendous strength, particularly because they are introducing a new generation of servers powered by Intel Itanium-2. They have what McDowell describes as “strength” in Windows, Linux, enterprise units, and now the Itanium-2 servers; they are also strong in SAN (networks) and OpenView software. All this, McDowell feels, makes them the most competitive in data centers. (Neel, PG).
It is particularly important to note that McDowell believes that HP can continue to hold its position even in times of recession; the products are that good, and the demand, she feels, will remain.
Other strengths include the fact that HP has always recognized the need to compete in a global market; its diversity of products; and its fine reputation for printers, particularly the InkJet and LaserJet. (Kosior, PG).
III Weaknesses
One of the greatest weaknesses is the fact that Compaq and HP “mirror” one another’s PC product lines. In fact, Compaq sells HP printers; the overlap in product lines could mean a “difficult fight.” (Mullins, PG).
HP and Compaq also overlap in the area of technology consulting (helping companies with business strategies, including setting up and maintaining computer networks); this field provides a better profit margin than hardware sales. But both companies have focused on low-end services and are “relatively weak in the more lucrative niche of business strategy and systems integration counseling, which refers to setting up and tying computer networks together.” (Mullins, PG).
Both these factors could lead to decreased profits and declining market share, particularly as IBM has retained a substantial lead in the consulting field on all levels.
IV Opportunities
Hewlett Packard is already involved in what it calls the “HP Wireless Mobile Classroom,” which is a “self-contained unit that houses 30 HP Omnibook notebook PCs, an all-in-one printer, scanner, copier and...