S: 1. Product diversity: HP not just do the software and hardware but the whole rang of service to design, implement and IT infrastructure. Right now HP is dominating the market of printer with 40% market share. The product diversity enables the company to hold its position even in the time of recession.
2.Successful strategic acquisitions: In 2002 HP acquire the Compaq and become the largest PC manufacturer by replacing the Dell. In November of 2009, Hewlett Packard announced that it had reached an agreement to acquire 3Com, a provider of computer network equipment, for $2.7 billion in a deal that H.P. plans as a the beginning of an assault on the market leader in networking, Cisco Systems. Computer networking is a $40 billion-a-year market with high profit margins that is growing briskly and dominated by Cisco, which has so far had little head-to-head competition. The company’s successful growth allows it to increase its competitiveness as well as create value for both investors and customers of the company.
3.Strong position in European: HP focuses on expanding its sales of PC market using the satellites in Switzerland and Germany. The company is expecting to remain dominant computer vendor in this region for a long time by increasing the investment to develop its satellites.
4. Management by objective:
5. Culture of the company (HP Way): the Informal workplace culture allow them schedule meeting without appointment, talk with line workers as often as with mangers in order to understand the operation. The company endorses the idea that employees have as valid interest in the performance as do shareholders. This gave HP a unique strength among its competitors. W: 1. Market segment integration: (1) Hewlett-Packard's majority of earnings are coming from its printing supplies division. This makes the company's total earnings extremely sensitive to this segment, which is a potential weakness for HP. (2) Compare to the major competitor, HP lack of significant software product or management consulting division. 2. HP depends on third-party suppliers, and our revenue and gross margin could suffer if we fail to manage suppliers properly no vision and mission statement. O: 1. Expanding presence in cloud computing market: Cloud computing describes a new delivery model for IT services. In July 2008, HP along with Intel Corporation and Yahoo! created a global, multi-data center, open source test bed for cloud computing research and education. The goal of the project was to promote collaboration among industry, academy and governments by removing the financial and logistical barriers. In 2009, HP announced HP Cloud Assure, a new offering designed to assist businesses to safely and effectively adopt cloud-based services. HP Cloud Assure consists of HP services and software, including HP Application Security Center, HP Performance Center and HP Business Availability Center. These solutions are delivered to customers though HP SaaS platform. The increasing demand for cloud computing is likely to create demand for HP’s solutions in coming years. The global spending on cloud computing is forecast to cross a value of over $40 billion by 2013. 2. Expanding portfolio of imaging and printing solutions - Hewlett Packard has made several strategic acquisitions and introduced new products in the imaging solutions segment in recent times. Its imaging solutions strategy entails the commercial markets, from print services solutions to new growth opportunities in commercial printing and capturing high-value pages in areas such as industrial applications, outdoor signage, and graphic arts. Among those key acquisitions are Tabblo, Logo works, Mac Dermid and Color Span. T: 1. There is a great pricing pressure in the overall PC market. Dell is a strong competitor and has a focus on the standardized computer markets. The company eliminates inventories more efficiently then any of its competitors, which is a main threat for...
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