HP is a leading player in the global market for personal computers (PCs), printers and related supplies, and IT services. In this blog post, we will do a SWOT analysis of HP company.
|Summary for SWOT Analysis of HP
Hewlett-Packard (HP) has been a trusted brand in the electronics industry since its inception in 1939. For many years now, HP has been able to maintain a strong presence in the computer industry. It is a global leader in consumer electronics. It provides a wide range of items for both individuals and corporations.
The company’s laptops, printers, desktops, Xerox machines, etc. are well distributed throughout the world. It is the leader in the printer market and is also trying to be the leader in the laptop and IT markets.
After its split from HPE (Hewlett-Packard Enterprise), the company has started growing rapidly. However, the global epidemic has led to a decline in its sales.
For the purpose of this article, we are going to consider the major strengths, weaknesses, opportunities, and other internal factors that have contributed to the development of the HP company.
Complete SWOT Analysis of HP Company
Strong Presence in China
China’s GDP has grown at an annual pace of more than 8% during the past decade. Different corporations are spending more money as the economy improves, and HP is in the right position to take advantage of it.
The firm’s corporate business and services sectors, in particular, have grown their market investments and extended their product offerings.
HP controls more than 15% of the global PC market. It is also a significant supplier of service network products. Virtually all of the markets in which the company is active have a sizable global footprint.
As a result, the company has built a solid name for itself. Hewlett-Packard was one of the world’s top 15 most valuable brands, according to Interbrand.
Diversified Product Portfolio
It’s true that HP has been slowly adding more business-focused products and services to its Personal Systems division and other parts of its product line.
There are now tens of thousands of different items and services available from businesses. Also, HP has a wider range of products than its competitors, which makes it less vulnerable to changes in different markets and industries.
The company spends a lot of money on research to remain on top of the latest developments in technology. As a result, HP Labs’ research is more focused on expanding its technologies such as natural language identification, audio/video analytics, and so on.
Poor competency in acquisitions
At least 50 technological businesses have been bought by HP in the last decade. Adding new talents, goods, and money to the firm was the goal of some acquisitions, but others were of little value or even harmful to the organization.
The most notable example is Autonomy Corporation, which was purchased for $11 billion and ultimately failed miserably. HP had to write down $8.8 billion in the value of its books after purchasing a firm that was overpriced. When HP bought the firm, it showed how ill-prepared they were. In the last decade, no other HP rival has had an acquisition disaster like this.
Over-Reliance on Personal Systems
For the time being, HP is primarily dependent on the PC market, namely laptop sales. After a few more years, the PC market is likely to expand slowly or maybe decline. As a result of declining profit margins on computer hardware, HP’s largest personal systems segment becomes a source of vulnerability.
Poor Presence in The Tablet Market
It is predicted that tablet sales will increase by double digits in the next few years. The tablet industry has proven to be of benefit to many other technology companies, which have seen significant revenue and profit growth as a result.
HP’s TouchPad tablet and the Slate tablets, which were later presented to the market, have failed to entice customers. So, the company loses money and hasn’t been able to compete well with Samsung and Apple in this lucrative industry.
Expand Services and Enterprise Solutions Divisions
Services and solutions for the enterprise, such as servers, networking, and storage, are HP’s main profitable businesses at present. The corporation should focus on developing these segments because they provide more development potential and larger profit margins than any other.
The corporation can now use business pricing strategies to come up with new technological advancements. Keeping customers happy is a major benefit for the organization.
Managed print services (MSP) Market
By 2024, the MSP industry is expected to reach $94.9 billion in revenue. Increasing its market share may be an excellent opportunity for HP.
An Upsurge in Economic Activity
Customers are spending more on new technologies, which might lead to more possibilities and customers for HP.
Increasing Demand for Cloud-Based Services
From 2019 to 2022, this industry is expected to grow at a 22 percent annual rate. The market is predicted to reach a value of $250 billion by 2023. As the cloud computing market continues to expand, HP is in the right position to capitalize on this opportunity.
Acquisition of More Technology-Related Patents
The best option for R & D is to obtain patents from other firms in the market, which is pricey. It’s possible that HP, with all of its free cash on hand, might make a good acquisition target. HP’s patent portfolio would allow it to stay competitive with its rivals in the industry.
The Slow Growth Rate of The Laptop Market
The computer industry’s rate of expansion is decreasing, and markets will reach saturation in the near future. Acers, Dell, Apple, Lenovo, and Samsung are just a few of the fierce competitors the company must contend with in terms of pricing, quality, brand recognition, technology, and distribution methods, among other things.
Rapid Technological Change
HP and other IT firms are in grave danger from the fast evolution of technology. It’s becoming increasingly difficult for companies to keep up with the demand for new items.
Sooner or later, the one who can’t keep up with the competition will be outpaced. This is especially bad news for HP because many of its products are already behind those of its competitors in terms of quality, price, and technical innovation.
The corporation is in a price war with other companies. As consumers become more price-conscious, HP is under more pressure to offer more features for less money.
Due to the fact that HP works in a variety of countries, the company may suffer difficulties due to currency fluctuations.
The Rising Cost of Raw Materials and Labour
As raw materials and labour get more expensive, production costs will go up. This will cause the price of the product to go up, which could hurt sales revenue.
Final Thought On Hewlett Packard SWOT Analysis
As you can see from the article above, the SWOT analysis of hp company has a number of strong points. These include the company’s ability to come up with new products, the strength of its brand, and its ability to make money.
By increasing its focus on innovation, the firm has managed to retain its performance level in the face of a variety of problems, including decreased client demand and increasing challenges affecting the company’s printer business.