Currently, HP is offering many services related with cloud computing and is well positioned to benefit from the growing market. Most of other technology businesses have successfully introduced their products in the tablet market and have enjoyed huge income and profit growth.
This has resulted in a strong brand reputation. No other HP competitor has experienced such an acquisition failure in the decade.
The company has increased its investments in the market and expanded product and service offerings, especially its enterprise business and services divisions. HP still heavily depends on sales from PC, especially laptops.
It recently introduced its Elite X3 which comes equipped with various business and productivity features. These are its traditional strongholds.
Strengths and weaknesses are internal factors and opportunities and threats external. This is especially threatening for HP as the company is already behind its rivals in terms of quality, price and technological advancement of some of the products.
Threats Retaliation by incumbent firms in software services. Strategic expansion into Chinese market may result in a strong competitive advantage for the business in the near future. Weaknesses Poor competency in acquisitions. The company now offers thousands of different products and services. As a result, the business experiences losses and is unable to compete successfully in this lucrative market with companies like Samsung and Apple.
Increasing demand of cloud based services. Although slowly, HP has been diversifying its product portfolio and moving from its main Personal Systems business to more profitable and lucrative enterprise solutions and services business.
With strengthened patent portfolio, HP would be able to compete with the rival firms in the table market. The one that cannot keep up with the competition soon fails.
This acquisition has revealed how incompetent HP was when acquiring the company. Moreover, diversification can help the brand reduce its dependency on PC and printer sales.
Companies conduct a SWOT before they embark on a new strategy or before they make an important business move like investing in a new project. Apart from it, the company can gain by diversifying into newer areas.
HP has a lot of free cash that could be used to acquire companies holding the necessary technology patents. While the cloud industry showed a fast rise, the demand for laptops and printers slowed. The market for PC has matured and is expected to grow very slowly or even decline after a few years.
Expand its range of smartphones and tablets Diversification The cloud computing market is growing rapidly. Profit margins are high in the market of enterprise software solutions and HP might face stronger than expected competition from incumbent firms such as Oracle or IBM. Acquisition of more technology related patents.
Opportunities Expand services and enterprise solutions divisions. Although HP had its TouchPad tablet model and later introduced its Slate series tablets into the market, the company has failed to offer an attractive product for consumers.
Over the last 10 years, HP has acquired at least 50 technology companies. It is also one of the major providers of service network products. The company faces intense competition from rivals like Acers, Apple, Dell, Lenovo or Samsung in terms of price, quality, brand, technology, distribution channels and range of products.
Poor presence in the tablet market. So, the decline in their sales is bound to hit HP hard. Growth rate of the computer market is slowing down and in the near future the markets will become saturated.robust speed, print quality, and paper handling capabilities from a market leader like HP, it could really change how customers view inkjet technology.
The timing could not be better for HP as InfoTrends forecasts the U.S. business inkjet ANALYSIS New HP Page-Wide Array Series-Game Changer for Small Business. Study Guide to Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications (New York Institute of Finance S).
The one big difference between the two quarterly studies was at the top of the market-share rankings, where HP Inc. came in slightly behind Lenovo Group Ltd. in Gartner's market-share rankings but. Analyze HP Inc. (HPQ) using the investment criteria of some of the greatest guru investors of our time.
This is Hewlett-Packard Company SWOT analysis in For more information on how to do a SWOT analysis please refer to our article. Company Background. Key Facts; Therefore, it will prove hard for HP to compete in personal computers market and continue to grow its market share.
Here is the SWOT analysis of Hewlett Packard which is one of the top market share holder for printers and also has a huge market share in laptops. HP ships two personal computers and two printers every second.Download