Hp Swot Case Study
HP is the worlds largest marketer of PCs. The PC unit produced $40.1 billion in revenue and $2 billion in operating profit in recent fiscal year. It is the world’s leading PC vendor with more than 15% market share and is also one of the major providers of service network products. This resulted in HP’s strong brand reputation. Furthermore, HP diversifies its product portfolio and moves from its main personal systems business to more profitable and lucrative enterprise solutions and services business. HP’s diverse product portfolio makes it less susceptible to changes in the different industries and market. In addition, the development of own software and hardware also helps HP win a part of market share.
Weakness:
Firstly, HP cannot compete on TouchPad tablet and smartphones market. The strategy for tablet is to attack Apple, but finally HP dumped it in a fire sale and did not sell it anymore. This will influence HP’s strong brand reputation and customer loyalty. Secondly, some analysts and investors say that HP overpaid for Autonomy, which will results in not enough cash to make other strategic moves. Thirdly, pursue pricey mergers and stock buybacks will increase expenses to run out of control. Fourthly, there is no clear strategy and in consequence stock price has decreased. Moreover, HP has tensional partnerships with Microsoft and Oracle and bad media relationship. On the other hand, there are many struggles within the management like new CEO from rival company.
After recent moves including the decision to spin off its personal-computer business Hewlett-Packard CEO Leo Apotheker said the computer maker is beginning a “needed transformation” to better compete for corporate technology budgets, as he explained before investors in New York.
One the one hand, it is likely to divest the PC unit in order to make required structural changes to other business units. To satisfy consumer demand in the PC business it is essential to develop