This essay is a brief SWOT analysis of the electronics company.
IIntroduction
Hewlett Packard is a technology company that provides IT infrastructure, personal computing and access devices, and other solutions to a global marketplace.
This paper is a SWOT analysis of the corporation. It concentrates on the PC business unit of the company.
IIStrengths
An interview with Mary McDowell, a Senior HP vice president, vice president gives us a great look at the strengths of the company. Hewlett Packard and Compaq merged in 2002, with HP taking over the management of Compaq’s assets. According to McDowell, this gives the PC division tremendous strength, particularly because they are introducing a new generation of servers powered by Intel Itanium-2. They have what McDowell describes as “strength” in Windows, Linux, enterprise units, and now the Itanium-2 servers; they are also strong in SAN (networks) and OpenView software. All this, McDowell feels, makes them the most competitive in data centers. (Neel, PG).
It is particularly important to note that McDowell believes that HP can continue to hold its position even in times of recession; the products are that good, and the demand, she feels, will remain.
Other strengths include the fact that HP has always recognized the need to compete in a global market; its diversity of products; and its fine reputation for printers, particularly the InkJet and LaserJet. (Kosior, PG).
IIIWeaknesses
One of the greatest weaknesses is the fact that Compaq and HP “mirror” one another’s PC product lines. In fact, Compaq sells HP printers; the overlap in product lines could mean a “difficult fight.” (Mullins, PG).
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The Global Product Company concept means ”to concentrate manufacturing – and ultimately other activities – wherever in the world it could be carried out to GE’s exacting standards most cost-effectively”. That means that the production is moving to countries where people are mostly underutilized (the example given in the case study tells about engineers from Eastern Europe, who cost only $1,5/h). ...
HP and Compaq also overlap in the area of technology consulting (helping companies with business strategies, including setting up and maintaining computer networks); this field provides a better profit margin than hardware sales. But both companies have focused on low-end services and are “relatively weak in the more lucrative niche of business strategy and systems integration counseling, which refers to setting up and tying computer networks together.” (Mullins, PG).
Both these factors could lead to decreased profits and declining market share, particularly as IBM has retained a substantial lead in the consulting field on all levels.
IVOpportunities
Hewlett Packard is already involved in what it calls the “HP Wireless Mobile Classroom,” which is a “self-contained unit that houses 30 HP Omnibook notebook PCs, an all-in-one printer, scanner, copier and fax, and a digital camera.” (“HP Announces Mobile Education Solution,” PG).
Because of its commitment to education, it makes sense for HP to continue to develop this technology.
HP recently moved into web conferencing development, and should probably continue to invest time and financial resources in this field, as well as distance education. Using the Internet as a communications and educational medium is still fairly new, and HP could realize substantial gains from early involvement in the technology.
VThreats
In general, the threat to HP is the same that faces all technology companies: the speed at which new technologies and products are developed, which in turn makes current inventory obsolete. Technological products that were state of the art a few months ago are now sitting on the shelf because no one wants them—they’re too old.
In addition to the risks that all technology companies share, HP is facing the “fall out” from its merger with Compaq. Not everyone is convinced that the merger is a good thing, and some are predicting that it will end in chaos, lost profits and a downturn for the company. Apparently, both the Hewlett and Packard families opposed the merger, and have expressed concern about the future direction of the organization. This, then, seems to be the biggest threat to HP at this time. (“HP Rivals May Benefit from Compaq Deal—Jack Welch,” PG).
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INTRODUCTION The Twentieth Century was profoundly affected by the innovations of Henry Ford. The invention of the automobile gave opportunities to multitudes of people. These opportunities were not just in transportation, but in occupation as well. Today, no matter where a Ford is produced, the consumer knows that they are receiving a high quality product. The reason for this is that the majority ...
VIConclusion
Hewlett Packard is a well-respected name in the technology industry, and its future seems to be secure. Certainly its merger with Compaq has given it access to technologies and innovations that hold a great deal of promise, such as the Itanium-2 based servers. Its strong performance in Windows and Linux, along with the new technology, should position it for substantial growth in data centers.
However, the merger has also created some problems, because the companies have a substantial overlap in their products and their consultant services. Time will tell whether or not the merger gives HP the edge that McDowell predicts.
VIIReferences
“HP Announces Mobile Education Solution.” Hewlett Packard [Web site]. 26 June 2001. Accessed: 19 March 2003. http://www.hp.com/hpinfo/newsroom/press/26jun01a.htm
“HP Rivals May Benefit from Compaq Deal—Jack Welch.” Silicon Valley.com [Web site]. 7 Feb 2002. Accessed: 19 March 2003. http://www.siliconvalley.com/mld/siliconvalley/business/companies/hewlett_packard/2624905.htm
Kosior, Michael A. “Hewlett-Packard: A Leader in Technologies.” [Web page]. 8 May 1995. Accessed: 19 March 2003. http://www.mkosior.com/hp.html
Mullins, Robert and Neil Orman. “Strengths, Weaknesses Evident in HP, Compaq Combination. Houston Business Journal 14 Sep 2001: 12A. Retrieved 19 March 2003 from The Gale Group, San Diego Public Library, San Diego, CA: http://web2.infotrac.galegroup.com/itw/infomark/4/15/34875913w2/purl=rc1_ITOF_0_A78692986&dyn=5!xrn_1_0_A78692986?sw_aep=sddp_main
Neel, Dan. “Interview: Hewlett-Packard Poised to Build on Its Strengths.” Infoworld [Web site]. 21 Jun 2002. Accessed: 19 March 2003. http://www.infoworld.com/article/02/06/21/020621hnhpmcdowell_1.html