SWOT analysis of HP Inc - Essay Example

SWOT Analysis of HP Inc. Introduction Hewlett-Packard, Inc. (HP) was founded by Bill Hewlett and Dave Packard back in 1939. (Computer History Museum, 2008) Over the years, the company managed to become the biggest global seller of PC. (Pettey, 2008)For this study, a SWOT analysis will be provided based on the current operations of HP Inc. In the process of conducting the SWOT analysis, internal strengths and weaknesses combined with external opportunities and threats will be identified and discussed.

Internal EnvironmentStrengthOver the years in service, HP managed to establish a strong brand name. For this reason, the company is able to easily enter into a business partnership with multi-national companies such as in the case of Starbucks in terms of using HP’s Wireless Connection Manager software for the Wi-Fi access of Starbucks’ clients. (Weinschenck, 2002) Aside from having good and loyal customer reputation in terms of patronizing HP’s PC-related products, the company continuously improves its global distribution network over the years.

(BNET, 1998) By enhancing its global distribution network, the company is able to easily distribute its product and services across the world. Thus, strengthening the company’s ability to increase its annual sales and profitability.Since 1999, HP continuously exerted extra effort in protecting its product and services through the U.S. intellectual property law. (HP, 2008a) By actively registering its newly innovated products and brand name under patent and trademark, the company is highly protected from having its competitors copy its existing and future technology.

WeaknessesHP’s Storage Division falls short of its client’s expectations. (Maitland, 2004; Vance, 2004) For this reason, the company has experienced a 5% decline in revenue because of HP’s server and storage division. Likewise, this causes the company’s share to fall down from $19.10 to $16.28 back in 2004. (Vance, 2004)External EnvironmentOpportunitiesHP continuously innovate new product and technology to satisfy the needs and wants of its target consumers. (Hoffman, 2007) Aiming to increase the business opportunity of HP, the company has recently designed and marketed a universal printer driver in order to increase its competitive advantages over other brands.

In order to overcome the company’s weaknesses, HP entered into merger with Compaq in order to improve its storage division. (Stammers, 2004) In the process, HP should take it as a challenge to improve its Server and Storage Division by changing its existing storage landscape. (Maitland, 2004)ThreatsFailure of HP to immediately act upon its weaknesses imposes a significant threat over its annual revenue and public shares since other competitors such as IBM and DELL among others could cause HP’s existing customer-base to shift from one pc manufacturer to another.

Another possible threat is the emergence of electronic substitute that could replace the existing demand for HP products and services. ConclusionConducting a SWOT analysis in the case of HP Inc. makes it easier on the part of the managers to easily understand the internal and external factors that could significantly affect the profitability and competitive advantages of HP. This study will not only enable HP managers to easily develop a useful strategic plan to overcome its weaknesses but also serves as a guide on how the company could further improve its existing business performance.

*** End ***Appendix I – SWOT Analysis of HP Inc.StrengthsWeaknessesOpportunitiesThreatsHP has a strong brand name. (Maitland, 2004)HP’s Server and Storage Division fall short of its client’s expectations. (Maitland, 2004; Vance, 2004)Continuously innovate new product and technology to satisfy the needs and wants of its target consumers. (Hoffman, 2007)Failure of HP to overcome its weaknesses.HP continuously improves its global distribution network. (BNET, 1998)-Improve HP’s Storage Division by changing its existing storage landscape.

(Maitland, 2004)Emergence of electronic substitute for HP products and services.HP has good customer reputation in terms of selling PC-related products.-HP entered into merger with Compaq in order to improve its storage division. (Stammers, 2004)-HP is protected by intellectual property rights through patent licensing. (HP, 2008a)---References:BNET. (1998, October). Retrieved August 11, 2008, from AVNET: HP announces new global distribution network strategy for electronic components: http://findarticles.

com/p/articles/mi_hb5243/is_199810/ai_n19814052Computer History Museum. (2008). Retrieved August 11, 2008, from Company: Hewlett-Packard Company (HP): http://www.computerhistory.org/brochures/companies.php?company=com-42bc1c0d5f2c5&alpha=g-iHoffman, P. (2007, March 6). eWeek.com. Retrieved August 11, 2008, from Are Universal Print Drivers a Competitive Advantage for HP?: http://www.eweek.com/c/a/Printers/Are-Universal-Print-Drivers-a-Competitive-Advantage-for-HP/HP. (2008a). Retrieved August 11, 2008, from Patent Licensing : http://www.hp.com/hpinfo/abouthp/iplicensing/patents.

htmlMaitland, J. (2004, November 8). Storage Technology News. Retrieved August 11, 2008, from Strategic Vendor Series: HP: http://searchstorage.techtarget.com/news/article/0,289142,sid5_gci1023997,00.htmlPettey, C. (2008, January 16). Gartner. Retrieved August 11, 2008, from Gartner Says Worldwide PC Market Grew 13 Percent in 2007: Hewlett-Packard Widens Its Position as Leading Vendor of Worldwide PC Shipments : http://www.gartner.com/it/page.jsp?id=584210Stammers, T. (2004, April 3). The Register.

Retrieved August 11, 2008, from HP storage division carries on regardless of merger: http://www.theregister.co.uk/2002/04/03/hp_storage_division_carries/Vance, A. (2004, August 12). The Register. Retrieved August 11, 2008, from HP shares tumble on weak Q3: http://www.theregister.co.uk/2004/08/12/hp_q3_execs_out/Weinschenck, C. (2002, November 25). TechRepublic. Retrieved August 11, 2008, from Partnership makes hotspots widely available in brand-name venues: http://articles.techrepublic.com.com/5100-10878_11-1058585.html