Strategic Analysis of Hp

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Hewlett Packard (HP)
Strategic Analysis

Student Name
Strategic Mangement
11/10/2012

Contents
EXECUTIVE SUMMARY3
Hewlett Packard (HP) Background:4
Company Objective:4
Mission statement:5
Vision statement:5
Strategies:5
Corporate Level Strategy:5
Business Level Strategy:6
Review of PC division of HP:7
Strategic Analysis:8
External Analysis:8
1.FIVE FORCES MODEL ANALYSIS8
2.STRATEGIC GROUP ANALYSIS:12
3.INDUSTRY LIFE CYCLE ANALYSIS13
Internal Analysis:14
CORE COMPETENCY ANALYSIS14
SWOT Analysis:17
Alternatives & Recommendations17
ALTERNATIVES AND ANALYSIS:17
RECOMMENDATIONS and WHY:18
Implementation of Balanced scorecard Approach:20
BSG’S Balanced Business Scorecard20
Bibliography22
APPENDICES24
EXECUTIVE SUMMARY

Hewlett Packard is the World’s largest PC Maker that is serving in more than 107 countries. HP has six divisions, amongst which the Personal Systems Group (PSG) is the largest that has generated almost $43 billion in the last year. The stake of HP’s Personal Computer market is in danger due to declining sales and miniscule margins. The reason for this is the shift in consumer trends from the desktop and laptop computers towards the tablets and Smartphone. In order to cope with the changing trends, HP also introduced HP Slate Tablet and WebOS Smartphone but these products failed to capture the attention of the consumers. In that case, when the company was facing loses, its CEO announced to spin off its PC division as well as killing of WebOS and Slate Tablet and this announcement raised a storm of confusion in the investors. So, the overall strategic analysis is being done to determine whether the company should keep or sell off its PC division. It is analyzed that the company should keep its Personal Computing Division because it is the largest division of HP and also HP has an advantage of being the leader in PC industry where the consumers have a lot of confidence on it. They have shipped more than 48 million units last year. HP should make some changes in its strategy regarding its PC division instead of selling it off. If HP decides to separate its PC division, then it has to bear $1.5 billion to develop new infrastructure and also $1 billion annually for branding. PSG also contributes significantly to HP’s solutions portfolio and overall brand value. So, the cost to recreate these in a standalone company outweighed the benefits of separation. Therefore, HP should keep its PC division to deliver greater customer and shareholder value. Hewlett Packard (HP) Background:

Hewlett Packard (HP) is one of the largest Information Technology corporations in the world that is operating in many countries. It is an American multinational corporation that was founded by two Stanford Graduates named Bill Hewlett and Dave Packard in a garage in Palo Alto, California in the late 1930s. HP specializes in computer manufacturing, data storage, networking hardware and other related products and services including printers, scanners, digital cameras etc. Its major product line is comprised of computing devices, related storage devices, enterprise servers as well as large variety of printers and other imaging products. HP is segregated into six groups: The Personal Systems Groups (PSG), The Imaging and Printing Group (IPG), Enterprise Servers, Storage, and Networking (ESSN), HP Software, HP Financial Services (HPFS) and The Technology Solutions Group (TSG) (Hewlett Packard Company, 2010). Company Objective:

HP is committed to develop products, services and information that is accessible to everyone. Our commitment to provide highest quality and value has enabled us to earn respect and loyalty by our customers and also helped us to ensure that the benefits of technology are available to everyone. We aim to lead in the marketplace by developing and delivering useful and innovative products, services and solutions. "It is...
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