Hewlett-Packard SWOT Analysis
“SWOT is an acronym for the internal Strengths and Weaknesses of a firm and
the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely
used technique through which managers create a quick overview of a company’s
strategic situation. The technique is based on the assumption that an effective strategy
derives from a sound “fit” between a firm’s internal resources (strengths and
weaknesses) and its external situation (opportunities and threats). A good fit maximizes
a firm’s strengths and opportunities and minimizes its weaknesses and threats.
Accurately applied, this simple assumption has powerful implications for the design of a
successful strategy.”
Hewlett-Packard
Hewlett-Packard Company (Hewlett-Packard) provides hardware,
software, solutions and services. Hewlett-Packard has a strong market position in
most of its product segments. The company has a leading market position in
several segments of the computer hardware market. Hewlett-Packard wrested
market leadership from Dell in the global PC market in 2006 and managed to
sustain it in 2007. Strong market position in different market segments enhances
the brand image of the company and provides economies of scale in
procurement. The company faces intense competition across all business
segments in terms of price, quality, brand, technology, reputation, distribution
and range of products. Stiff competition could adversely affect the company’s
revenues and profitability.
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Hewlett-Packard SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor
TYPE OF FACTOR
Favorable
Internal
Strengths
Unfavorable
Weaknesses
¾ Strong market position
¾ Robust financials
¾ Good brand equity
¾ Weak internal
controls
¾ Lack of in-house
management
consulting division
¾ Flat R&D spending
External
Opportunities
¾ IT initiatives
¾ Opportunities in BRIC
countries
¾ Opportunities in
imaging and printing
Threats
¾ Intense competition
¾ Economic
Slowdown in US
and Europe
¾ Supply disruptions
and product recalls
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