HEWLETT-PACKARD

Traditional Strategy Analysis of Hewlett-Packard



Traditional Strategy Analysis of Hewlett-Packard

Introduction

HP is considered to be the second largest company in the computer industry in the world. It was founded by David Packard and Bill Hewlett, in the year 1939. (Dean, 2010, 25-75) Both of them were graduates from the University of Stanford in the year 1934. The origin of the company was with a very humble start while both of them were still studying at Stanford. This first invention was one of the outstanding that became a hallmark for the excellence of Hewlett - Packard. These kinds of products had directed the firm towards the title of being an innovative organization in the development of precision instrument (Mulcaster, 2009). This will eventually provide an ample percentage of the innovative product measurement instrument market. HP occupies a strong position in the information technology market. The company is the leader in global PC market. It holds the leading position with a market share of 21%, handling over 17,985 shipments. It is also a global leader in personal systems and imaging and printing.

SWOT Analysis

External Factors:

Opportunities

The company can use other entails of distributions such as the retailing of the internet which can probably expand the company's market and sales access. This has endowed Hewlett Packard to evolve new products and build up customer loyalty and customer satisfaction. Some of the remarkable opportunities include:

Hewlett Packard expanding its presence in cloud computing market

Cloud computing markets have described a different model for the IT industry. In 2008, Hewlett Packard along with Yahoo! and Intel Corporation developed a global, multi-data centre, open source test bed for the cloud computing education and research. The purpose of this project was to collaboration among academy, governments and industries by eliminating the logistical and financial barriers (Thomas, 2009). During 2009, Hewlett Packard announced its product- HP Cloud Assure, new SaaS that offers designs for business assistance in order to adopt cloud-based services effectively and efficiently. This product consists of Hp software and services, including the HP Application Security Centre, HP Business Availability Centre and HP Performance Centre.

Expanding Hp's portfolio of printing and imaging solution

HP has done several strategic acquisitions and has introduced several new products in the imaging solutions. Additionally, it has also introduced new digital technologies like HP Latex Ink, HP Indigo Presses, and HP Inkjet Web Press as part of its offerings.

Threats:

Projected decrease in the IT market

It is predicted that there will be a decrease in demand for IT products globally. The inflation and economic slowdown has adversely affected numerous market segments that include IT industry.

Hyper-competitive environment

The competitive environment is becoming stronger and stronger with continuous innovations and introduction of new products and ideas in the market. Hewlett Packard has recently left Dell behind; Dell is still remaining its dreadful competitor along with other competitors like Lenova Group, Aver and Toshiba. The competition is strong in terms of technology, brand, reputation, quality, distribution, price and range of products. In some areas, Hewlett Packard faces competition from generically-branded manufacturers or local companies (Snell, ...