STRATEGIC MANAGEMENT IN ACTION

Strategic management in Action

Strategic management in Action

Task A

Internal and External Analysis (SWOT)

SWOT analysis can be described as a strategic planning method used to evaluate a company's internal strengths/weaknesses and external opportunities/threats. It helps organizations to know where they are standing according to their internal analysis and where they can go using their external analysis. Moreover, it helps companies in analyzing their competitive position in the market where they exist (Belay et.al, pp.8-16, 2010) .

HP offers products related to technology, software, solutions and further services to a vast customer base that comprises of individuals, small to medium size business organizations, and large enterprises. Its collection of products and services includes multi-vendor customer services, enterprise I.T infrastructure, personal computing and other access devices, graphical and printing-related products. Further, it includes customer support services for almost all of their services. Healthy market situation and image that its brands keep will allow it to introduce innovative products to the market and offer a competitive advantage over its rivals. Nevertheless, cutthroat stress can adversely influence the overall profitability.

Strengths

Weaknesses

Business Position With around US$ 10 billion cash in hand

Global Enterprise with vast operations across the globe

Ranked 28th in Fortune 500 List (2011)

Operations in more than 170 countries

Leadership position in Market of Printers

Proper processes

Use of top class technology

Increased Competitiveness through focus on strategies supporting free market economies

Long term debt following investments in different segments of the market

Complaints in some products

Low Profits

Lack of key competencies

Branding Issues

Economies of Scale

Less timely innovation

Management Problems in Control

Legal proceedings

Opportunities

Threats

Move into New Segments & Market

Use resources to create customer satisfaction

Product Innovations

Outsourcing Manufacturing Unit to China

Diversification into new segments

Slow growth

Increased competitive Pressure

Regulatory policies of government

Oracle's contract termination can cause problems

Global Crisis related to wars and politics

Summary of Internal & External Analysis of HP

Strengths

HP is a company that is huge in size and have a significant amount of cash. They have a large customer following across the world, which helps in increasing the revenue figures. They have been able to observe positivity in the recent past and were able to drift past their archrivals Dell that is evident from the 28th rank of HP in fortune's top 500. HP has its global existence felt almost all around the world with operations in around 170 countries across the world. Most of the countries and markets in which they enter, they offer computers, printers and similar other hardware products. In the industry of Printers, they enjoyed cast success. Printers are perhaps there most successful brands. They offer printers of different types ranging from inkjets to laser jets. One is a high extreme durable quality product and the other is relatively cheaper. HP's position in this segment of the market has never been challenged significantly. At HP, processes are proper and well defined. The technology they use is top class.

Weaknesses

HP has some weaknesses, which it needs to focus in order to capitalise on the leadership position in its industry. These weaknesses include low profitability, high debt ratio, constant complaints on some of ...