Dirk van Beelen
Jonathan van Melle
The purpose of this report is to analyze and evaluate opportunities and threats in the North-American environment of HP. This report is written to provide Hewlett-Packard with a clear view of external factors which influence the company and how they should react on those factors.
The method that is used for gathering information is desk research; internet, books, articles and Avans databanks. A limitation that occurred was finding the gross domestic product of North-America.
To find out the most important opportunity and threat there are five developments chosen, those are: Business cycle, Competition, Environmental awareness, Changes in consumer behaviour and Exchange rates. According to the business cycle, the US is still in the recovery phase. The sales of Hewlett-Packard has been dropped because of this fact. However in the first quarter of 2010 their turnover increased with 28 percent. This was achieved by expansions into more profitable areas, such as technology services and computer networking. The completion in the computer-industry is not only about technology, but also the extra services that companies are providing to their customers. The biggest threat that Hewlett-Packard is facing when it comes to the five forces is the power of suppliers. Suppliers have an influence on the prices of Hewlett-Packard its products, and this will result in a higher price for Hewlett-Packard’s consumers. Being a green company results into a possibility for Hewlett-Packard, because global pollution is getting more important for consumers nowadays. Hewlett-Packard is aware of this opportunity and therefore they put a lot of effort in reducing waste, recycling and energy saving. There are two main changes when it comes to changes in consumer behavior, those are: Online shopping is increasing and consumers are looking for personalized products. Therefore the opportunity that Hewlett-Packard is facing is that they could expand their online marketing. This will result in more sales online. The developments in exchange rates have a great influence on Hewlett-Packard. The opportunities for Hewlett-Packard according to the exchange rates are that they should look for alternative natural resources, which they can buy in North-America. Another finding is that the exchange rates are a threat, because Hewlett-Packard could lose a great amount of money when the Dollar lowers in value. The analysis shows that there are many environmental factors influencing Hewlett-Packard. Their competition is strong, but out-performable. The main opportunity is the growing PC market, this is because of the upcoming products. Hewlett-Packard had the possibility to maintain their leading position in the market. The main threat is the supplier power. Suppliers are able to influence the price of Hewlett-Packard, therefore Hewlett-Packard even can lose mark share.
The recommendations founded to ensure a successful business are:
-Hewlett-Packard needs to be aware of current exchange rate, so when the
exchange rate is of favorable impact, this will result into a lower price abroad.
-Online shopping is growing and therefore they should remain their online selling
channel. Hewlett-Packard should enable their consumers to create their own PC
with the features that fit their needs.
-Hewlett-Packard needs to maintain their good reputation when it comes to
environmental awareness, because this will provide Hewlett-Packard with a
competitive advantage on the long term.
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