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SWOT Analysis: Hewlett Packard

MGM641-0902A-01 MBA-OM Capstone I Instructor:  Dr. George Helms Phase 1 Individual Project Comprehensive Research Report By: Sikander (Alex) Baloch. SWOT Analysis: Hewlett Packard. SWOT Analysis – Opportunities .

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SWOT Analysis: Hewlett Packard

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  1. MGM641-0902A-01MBA-OM Capstone IInstructor:  Dr. George HelmsPhase 1 Individual ProjectComprehensive Research ReportBy: Sikander (Alex) Baloch SWOT Analysis: Hewlett Packard

  2. SWOT Analysis – Opportunities • In today’s technological windfall, the opportunities are plenty for this giant. Two words come to mind, technological innovation. Research and development is the key to the future opportunities of Hewlett Packard. The company has been innovative over the past 70 years to get to where they are today, but one can never rest. To be innovative and keep their market share, Hewlett Packard must introduce new and upgraded products.

  3. SWOT Analysis – Threats • What is the biggest threat that Hewlett Packard is up against today? The economy. Just this month alone, MSNBC has reported a worldwide market meltdown. (MSNBC 2008) What does this mean for Hewlett Packard? Plenty. If large businesses such as banks have Hewlett Packard equipment on lease or purchased the products over time, once the company folds due to the economy, who will pay the bill? How many company closings will it take before Hewlett Packard sees a significant decrease in their profits and market share? Over time, the market will dictate the stability of Hewlett Packard.

  4. Does HP have a Competitive Advantage and/or Competitive Strategy? • Hewlett Packard has both. Hewlett Packard has the competitive advantage and competitive strategy. How? Today any one can make a purchase with the click of a mouse. Families can have face to face conversations half way around the world. Wireless technologies have made it possible for passengers on airplanes to watch any show he or she wants to 37,000 feet above the ground. This is all done through advantage and strategy. The company’s competitive advantage lies in the printing supply division. As stated previously in this paper, no other company can touch Hewlett Packard when it comes to printing. This in itself gives Hewlett Packard the competitive advantage.

  5. Choose a Product to Analyze • The product I find to be the most advantageous to the firm is the all in one copier, fax, printer and scanner. This product is such innovation and very cost effective. The average all in one starts in the $99 range, making the product affordable to all. Small business can have such a machine for one price. A student can also own the all in one without breaking his or her budget. Moms can use to scan photos of baby for emails; dad can fax business documents to clients after hours and on weekends; sis can print out the latest high school fads and the list goes on. According to the company’s website, Hewlett Packard is reporting 98% increase in sales for the first year of production. (Hewlett Packard 2002)

  6. Strategic Alternatives • New strategic alternatives are nothing new to Hewlett Packard, as the company’s history has proven. The company should begin research on opening operations in Iraq. Why Iraq? When the war is over, land will be cheap and labor costs low. The area will welcome the business and the residents will have an opportunity to learn and grow. Some might say this will not work, but we must look at other former war zones which are now profitable for companies. Cannon camera company has a plant in Vietnam. LG Electronics has a manufacturing plant in Korea. Citizen Watch Company has a plant in Japan. These countries were war zones at one time or another. If Hewlett Packard ceased the opportunity, after the war, the company can expand affordably and pass the affordability of new products on to the public. This is a winning situation all around.

  7. Conclusion • In closing, Hewlett Packard is a successful company and has been since inception. The founders wanted to make quality products and they did. The founders wanted to share the wealth with their employees, and they did by offering stock options. • Through innovation, Hewlett Packard is the leader of technology. Through leadership, the company has stood the test of time. Through strategic alternatives, the company will expand and grow to new heights. Hewlett Packard is the perfect example of the American dream.

  8. References: • Gois, O. (2008) World Markets Tumble after Hugh US Loss, Associated Press retrieved from http://www.msnbc.msn.com/id/27107914/ • Hewlett Packard Corporate Website (2002) HP Leads Market Shift to All-In-One Printers, retrieved from http://www.hp.com/hpinfo/newsroom/press/2002/020826a.html • Hewlett Packard Corporate Website 2008, Online Media Services retrieved fromhttp://h71036.www7.hp.com/hho/cache/532676-0-0-225-121.html • Miller, L. (2008) Hewlett Packard’s Profits Jump 14 Percent, Associated Press retrieved from • http://www.msnbc.msn.com/id/26309785/

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