Hewlett Packard Incorporation’s SWOT Analysis

Introduction

This project entails a summary of three key points: Strengths; internal-External Matrix and strategies on Hewlett Packard Incorporation (HP). Strengths entail the major competencies of the company and in this case, have been evaluated through SWOT analysis and the internal-external factor matrix. The Internal-External factor matrix is employed to specifically compare the scores awarded depending on how the strengths or competencies of the company have been performing.

The SWOT Analysis-strategies are split into two categories: SO Strategies which focuses on the process of spreading out the market in China as well as the process of entering into an agreement with Foxcom. These strategies also focus on business service and gaining market share in different sectors, through investing in Android/tablets products from large cash flow. ST Strategies, on the other hand, emphasizes using its innovative products to inform more customers about their effectiveness and superiority.

This is undertaken with the aim of targeting more markets, especially where the number of PC customers is decreasing and using its financial position and cash flow from its printing business to monitor and forecast its performance throughout the economic crisis.

Analysis

In summary, SWOT Analysis emphasizes the major strengths of the company such as innovativeness, affordability of products such as software and hardware. On the internal factor matrix, the major strengths are allocated a score of 4. A score of 3 was awarded to the use of an online marketing platform. Mainly because the company does not entirely on the online platform to distributes its offerings.

The best performance of the company is attributed to its active presence in the United States and strategic positioning in emerging markets such as China, Japan, and Europe. The positioning in many countries has helped reduce the company’s risk. The company has achieved this by offering a competitive price tag and discounts. The company has also been using competitive pricing to attract middle-class income earners.

In preparation to stay ahead of the competition, HP Company has embraced a number of approaches including amalgamation or consolidation of some of its sub-brands. Specifically, the amalgamation between HP and Compaq PC has helped in restructuring of effective sales and public awareness of its products. This has advantageously positioned the company against its major competitors. In fact, this factor majorly contributes to the success of HP Company; other factors include customer acquisition, customer retention, quality services, and proactive response to different business situations.

The cash flow section entails the financial performance of the company from various lines of business. The printing business line generates a lot of revenue for the company. For instance, in 2012, the company registered close to eleven billion dollars of income. The profitability of the printing business is attributed to a number of aspects: first, the company produces its printers at low cost an aspect that makes them affordable to many people. Second, the model of its cartridges encourages frequent upgrades. In general, high cash flows and liquidity generated from the personal computer and printing segments makes it easier for the organization to reinvest and enhance its offerings.

Due to high competition in the market, the best way for the organization to stay ahead of its competitors is to enhance their marketing strategy through good brand positioning. However, to achieve this, a reorganization of market segmentation is needed in order to introduce a direct link between the company and the clients. The relationship between the company and its clients can also be enhanced further by offering free customer online support services besides discounts for different bundles of products. With this, the company through online marketing will be able to slice away 40 percent of the global computer market that is currently controlled by the Dell Company.

The Internal-External Matrix will be created to critically evaluate the internal and external position of Hewlett Packard Incorporation (HP) with regard to strengths and weaknesses. A weighted score of 2.85 results from the internal factor matrix and 2.8 results from external factor evaluation. This means that of the 9 divisions of the matrix, the strategic position of HP is in the fifth division. There are implications associated with the fifth position.

First, it shows that HP has an average internal weighted score and a medium weighted score. Therefore, the company can only overcome its threats and weaknesses through the employment of strategies that will help enhance its strengths and optimize opportunities. In addition, the company should employ strategies such as penetration of the market and the development of products in order to maintain its position.

There are other areas such as online presence that must be improved. From the internal factor evaluation, HP has a score of 0.30 in online marketing, which is quite low. The online platform is an important marketing channel, HP should consider enhancing it in order to reinforce its penetration strategy. The bottom line is that majority of the customers are connected on the Internet; thus the best way to reach them faster is through online marketing. In addition, some of the products such as tablets and textile printers should be advertised because they have low weighted scores in both the internal evaluation matrix and external factor.

Basing the information contained in the internal evaluation matrix, the HP Company should also adopt a product development strategy to hold and maintain its position. In addition, given that the weighted score for the tablet market is 0.30, the company should enhance its market through development tablets that have unique features so that it can attract a great number of customers in the global markets of tablets.

The company should also enhance the designs of its printing products as they have low weighted scores. The company can achieve this through designing of the products that are up to the standard and meet the unique needs of both the potential customers and the competitive market. The new design of the printing products would ensure that product gaps in both printing devices and materials are eliminated.

There are also two SWOT Analysis-Strategies adopted by the HP Company. The SO Strategies include spreading out the market in China and launching a joint venture with Foxconn to focus on business service and gaining market share in different sectors. The strategic move will enable the company to effectively position its products in the Chinese market. Foxconn has been chosen by HP as it has a lot of investing in many diversified products and lines of business. On top of that Foxconn has been investing a lot of resources in a software development unit an aspect that HP needs to enhance its line of business. Other sectors that the company has invested in the United States include the automotive industry and the telecom industry.

The company has solid plans for the future. These plans include focusing on business services and automating all processes. This will be achieved by focusing on different sectors of the high-tech/computer industry. There are many benefits that will result from the HP/Foxconn joint venture. One of these benefits is venturing into the server market. Specifically, this move is aimed at competing with Quanta company based in Taiwan and has won server contracts from big companies such as Facebook.

Another SO strategy is investing in Android/tablet products from the large cash flow. Since the company has a large pool of cash flow one way to stay ahead of the competition is to invest in the production and marketing of its core products. Currently, the number of customers for different tablets and android devices is on the rise, thus HP should use its cash flow to produce quality tablets and android devices for the growing market.

In addition, the company should embrace research and development (R&D) practices in order to manufacture quality products. The cash flow from HP’s printing business should also support the best marketing strategy for the products. HP Incorporation should consider the expectations of every consumer in order to produce quality devices and tablets. Another recommendation includes the possibility of exploring new markets across the United States in order to compete with some of the leading competitors such as Apple Incorporation, Dell, and Amazon.

ST Strategies include using its innovative products to inform more customers about their effectiveness and superiority and target more markets, especially where the number of PC customers is decreasing. In this case, there are a number of things that have been suggested for HP to adopt. First, HP should use its strengths to deal with most of the threats affecting its business. HP should use its innovative products to inform more customers about its effectiveness and superiority. The company should ensure every product is available, affordable, and innovative. The company should target more markets, especially where the number of PC customers is decreasing.

HP Incorporation should inform its customers about the features and benefits of its affordable PCs. The decision to market its superior products will attract more customers. The approach will revive the declining PC market in the United States. The products will also address the challenge of substitute goods in the market. HP’s research and development (R&D) strategy helps the company product quality and competitive devices that can compete in the American market. To attract new clients, the company should use its cash flow to widen its market base.

Another ST strategy is to use its financial position and cash flow from its printing business to monitor and forecast its performance throughout the economic crisis. Knowing too well that any economic crisis is capable of affecting the company’s financial strength and business performance, HP stands a chance to overcome this threat, by using its financial position and cash flow from its printing business to monitor and forecast its performance throughout the economic crisis.

Given that its cash flows are important to any other business; Hewlett Packard should not be an exception. This undertaking is likely to make the company a leading marketer of PCs and Android devices particularly in the American market.