Dell Ibm Hp Pcs Swot

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Opportunities, Threats, Strengths, Weaknesses and SWOT Strategies

HEWLETT PACKARD

Opportunities

1. The worldwide personal computer industry posted its fourth consecutive year of double digit expansion in 2006, recording 10 percent unit growth. 2. PC shipments in the Asia-Pacific region expanded by an estimated 17.6 percent in 2006 on a unit basis. 3. IDC’s “rest of the world” category, which includes Eastern Europe, Latin America, and the Middle East rose 22 percent on a preliminary basis. 4. It is estimated that the PC industry will post total unit growth of approximately 11 percent for 2007. 5. Dell’s units sold declined 8.4 percent, so Dell’s market share fell by nearly 300 basis points on a year-over-year basis. 6. Over the past three years, Gateway’s gross margins narrowed from 14.4 percent in the first quarter of 2004 to 5.2 percent in the fourth quarter of 2006 7. During the fourth quarter of 2006, server market revenue grew by 5.2 percent. 8. Dell achieved server market share of 9.4 percent on server revenue growth of 2.4 percent, down from 9.6 percent 9. Worldwide revenues for servers were up 2.0 percent to $52.3 billion. 10. In the first quarter of 2006, IBM’s server revenue growth of 3.8 percent put its market share at 37.9 percent, down from 38.4 percent the comparable year-earlier quarter.

Threats

1. IBM maintained its position as the leader in overall server market revenues in 2006. 2. PC unit shipments in the U.S. declined 0.5 percent in the fourth quarter of 2006. 3. During the fourth quarter of 2006, Apple grew its units by 31.8 percent in the U.S. market. 4. Sun’s server market share was 9.7 percent in the fourth quarter of 2006, up from 8.2 percent a year earlier. 5. Apple’s switch in 2006 to Intel-based chips increased the processing power of Macs. 6. IBM’s server factory revenues increased 0.8 percent. 7. Sun Microsystems’s server factory revenues increased 11.2 percent. 8. Apple’s improvement in the U.S. market share from 3.3 percent in 2004 to 4.0 percent in 2005, and then to 4.2 percent in 2006. 9. IBM’s high-end sever market share rose to 57.2 percent from 53.6 percent as revenues improved by 6.6 percent. 10. Sun Microsystems’s low-end server market share expanded 60 basis points to 8.2 percent.

Strengths

1. HP’s unit growth was an impressive 23.8 percent, significantly outpacing the second and third-place vendors 2. In November 2006, HP completed the acquisition of Mercury Interactive Corp., a provider of software and services, for $4.5 billion. 3. HP’s net property, plant, and equipment increased from $6.5 billion in 2005 to $6.9 billion in 2006. 4. HP’s worldwide PC shipments market share increased in 2006 to 17 percent from 15.7 percent in 2005. 5. HP experienced a 8.4 percent increase in worldwide volume server market share. 6. HP’s high-end server revenues increased 2.4 percent. 7. HP remained in the number 1 spot in the fourth quarter of 2006, according to IDC, and gained more than 200 basis points of market share on a year-over-year basis, ending the period at 18.1 percent. 8. In the U.S., HP’s market share rose to 24.0 percent from 20.6 percent. 9. HP’s server revenue growth was 5.1 percent in the fourth quarter of 2006. 10. HP’s non-U.S. net revenue rose from $56.1 billion in 2005 to 59.4 billion in 2006.

Weaknesses

1. HP’s worldwide midrange server market share decreased 21.3 percent in 2006. 2. HP ceded 100 basis points of server market share, to 26.8 percent. 3. Local labor conditions and regulations

4. HP’s return on equity is 18.55 percent, while the return in equity of the industry leader in return on equity is 38.93 percent. 5. Managing a geographically dispersed workforce
6. HP’s long-term debt/equity is 0.233, while the long-term debt/equity of the industry leader in...
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