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Hewlett-Packard (SWOT Analysis)

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“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.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

 

Location of Factor

TYPE OF FACTOR

Favorable

Unfavorable

Internal

Strengths

  • Strong market position
  • Robust financials
  • Good brand equity

Weaknesses

  • Weak internal controls
  • Lack of in-house management consulting division
  • Flat R&D spending

External

Opportunities

  • IT initiatives
  • Opportunities in BRIC countries
  • Opportunities in imaging and printing

Threats

  • Intense competition
  • Economic Slowdown in US and Europe
  • Supply disruptions and product recalls
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