Hewlett-Packard (HP) provides technology products, software, solutions and services to a broad range of customers including individuals, small and medium size businesses (SMBs), and large enterprises. It provides expert advice and assistance in the fields of testing, and supporting software to meet the needs of a particular customer. They also plan and design computer systems and integrate computer hardware, software and communication technologies. HP manufactures and markets computer displays (monitors) and peripherals (e.g. keyboards, mice, printers, scanners etc.), computer systems under different brand names, and networking equipments (e.g. routers and modems) (Hewlett-Packard, 2012).
Porters Five Forces Analysis
Competitive Rivalry
There are several competitors of HP that include LG, Motorola, Samsung and Sony Ericsson etc.
Threat of New Entrants
High fixed costs mean that the volume is important for the company. Capital requirements are high due to activities such as R & D and advertising require capital commitments.
Power of Buyers
Power of buyers is high because there are many products for customers to choose from the market of mobile telephones. The speed of technological innovation is fast, the competitors have more power to compete with HP. In addition, the price of HP is high, so that customers are price sensitive.
The Power of Suppliers
If suppliers change prices, it has a direct impact on the prices of HPs products as well. If there are multiple suppliers, they can easily switch from one to another.
Threat of Substitutes
Threat of Substitutes available in the market is also present. New technologies have also emerged in recent years.
Internal and External Analysis of Hewlett-Packard
Strengths
One of the strengths of HP is its strong brand name. HP is a one of known companies in the industry and has been working for long in the IT industry. Its extensive distribution network worldwide, so that products are easily accessible to target customers is also one of its strengths. Products and services are of highest quality. The product range is very wide. The financial aspect of the company is really strong; it is a lucrative business if it can be increase its innovations. HP has a very well liked familiarity amidst the public. Public, glimpse HP, up to date humanity and latest tendency that make stylish telephones, which offer straightforward, but by tallying on their phones (Bovee and Thill, 2010). This, of course, boosts the sales of their products and decreases new merchandise failure. HP has a very friendly business environment, with focus on recycling. This is an affirmative mind-set to the natural environment that assists the persons about them and minimizes the risk of awful press, which reflects on them. It can sway sales and attractiveness amidst the population.
Technology
HP has partnered with Palm in the technology after the over take; it has had a good reputation in the cellular industry for many years. After that, HP has big opportunities to increase their market size in the mobile users who prefer mobile phones that can substitute for PCs in the times of need.