Hewlett-Packard (HP) is a global provider of personal systems, imaging and printing products, and technology solutions. It is the largest player in the inkjet and laser printer market. HP is also one of the market leaders in the global PC market. The one strength that I feel is important is that HP has a very strong distribution channel globally.
HP uses the Windows platform in all its I-PAQ phones. Incidentally, I-PAQ phones have been much criticized for not being very Windows friendly in a lot of user forums. The inability to react quickly to changing market conditions and demands is a weakness of HP.
Expansion in alternative client computing architectures and other emerging mobile computing devices gives a good opportunity for HP. The mobile phone market is forecasted to grow tremendously.
Hyper-competitive environment - Companies such as Dell, Toshiba, Lenova Group and Acer are formidable competitors for HP. It competes in terms of price, brand, quality, technology, distribution and range of products, among other factors. Other mobile operating systems such as Symbian, iPhone, and Linux are on the rise and they too pose a threat to HP.
Based on the above SWOT analysis, HP should acquire Palm computing in 2010. By acquiring Palm, HP ensures it has its own operating system, the Palm in-house developed WebOS. WebOS is user-friendly and has been specially designed to take of all internet usage needs. By doing so, HP can claim its place in the competitive industry dominated by the likes of Blackberry, Apple, HTC and Nokia. HP also has a very strong distribution channel globally which Palm is lacking in. Both companies will benefit from this.