SWOT Analysis of HP

Introduction 

Swot analysis of HP. Hewlett Packard (HP) is a US tech multinational company. HP offers hardware, software, and consumer products for individuals and businesses and companies. David Packard and Bill Hewlett laid the foundation of HP on January 01, 1939. The headquarter of the tech company is in Palo Alto, California, USA.

HP earned its first contract in 1938 from the Walt Disney for the animated cartoon film. They formally established the company later year in 1939. The tech brand has been in different phases of history and became the world’s largest computer manufacturing company in 2007.

According to an estimate, the total annual revenue of HP in 2020 was 56.639 billion dollars, and it has declined by 3.6%. Out of which, the tech company’s net income was 2.844 billion dollars, and it has decreased by 9.77%.

Videoconferencing equipment, Pro Curve, Storage Area Management, Enterprise Storage, Workstation, Personal/Business notebooks, Desktop Computers, Pocket Computers, Mobile Phones, Tablets, Scanners, Cameras, Cloud Services, Software, and Printers are some of the top products/services of HP.

Today, we’ll study the swot analysis of HP. Here we’re going to focus on the internal and external factors that impact the world’s largest computer manufacturing company’s growth and productivity. Here’s the swot analysis of HP as follows;

Strengths of HP

Distribution Network

HP has a strong distribution network of suppliers and retailers across the world. Because of the company’s network; you’ll find HP’s products in the different market across the globe. The brand has employed approximately more than 53,000 people to manage its various operation across the world.

Research & Development

According to an estimate, the research and development budget of HP in 2020 was 1.87 billion dollars. The computer manufacturing brand has made a total investment of 26.98 billion dollars.

The goal of such a huge investment is to produce innovative and creative products for customers. The company offers such high-quality, innovative products at a very affordable price.

Customer Service

The customer support service of HP helps hundreds of people every day. The company develops a relationship with customers through customer service. Brand loyalty makes repetitive customers, and the company increases its sale through it.

Target Market

HP is highly-focused on products and services. The company follows the customer-centred approach. By keeping in mind, it offers the products relevant to the needs and requirement of people. Instead of just showing the products/services and avoiding their needs.

Market Share

The total market share of HP in the US is 28% in the PC market. It’s highest than any other company in the US. The market share of the HP in the international market is 21.2%, and it ranks at the 2nd position. It’s higher than the market share of Dell and lower than Lenovo.

Weaknesses of HP

Slow in the Digital Entertainment

The focus of HP has always been on the production of hardware tools, equipment, and products. The brand has accumulated a significant market share as a result. But the company has been slowing down in the digital entertainment market like software, application, and other tools.

Lack of Customization

HP doesn’t offer the customized laptop and desktop computers just like Dell Technologies. That’s why many tech-oriented customers prefer the customized products of Dell rather than HP’s.

Fake Products

The numbers of counterfeit products of HP are increasing the 3rd world countries; sellers use the logo of HP and sell their low-quality products at higher prices. Customers pay for it because of the brand’s logo. Such replicated products are decreasing the market share of HP.

Opportunities available to HP

Service Industry

HP acquired the EDS (Electronic Data System) in 2008, and it’s the 2nd world’s service providing company. The brand should make more service industry acquisitions to increase its service portfolio. It would help the computer manufacturing company to diversify its market share.

If HP has a strong service portfolio, it would have helped the company during the pandemic months. The service tech companies like FacebookGoogleAppleAmazonMicrosoft, and others have made a plethora of profit during the pandemic months.

Digital Awareness

The technological awareness is increasing among people across the world. It has also increased the usage of smartphones, computers, and laptops. HP has an excellent opportunity to launch different products to target different segments of the market.

Threats HP has to face

Economic Recession

The global economy is in economic recession due to the pandemic of covid-19. It has made millions of people unemployed, and their buying power has decreased resultantly. The lockdown and shutdown of global markets have significantly reduced the sales of HP’s computers and laptops.

Competition

Dell, Lenovo, Apple, Acer, and Toshiba are some of the top competitors of HP. There isn’t much difference in the price range. The customers have got a lot of option to choose among all of these famous brands. The increase in market share of the competitors’ computer manufacturing companies is a severe threat to HP.

Low Price

HP is already offering its products/services at an economical price range. If the company reduces its prices more, it will lead the company to bankruptcy.

Increasing Cost

The material cost, labour cost, shipment cost, and various other operational costs are increasing. They make it difficult for the company to keep the retail price lower and compete in the market.

Conclusion 

After a careful study of the swot analysis of HP, we’ve concluded that HP is indeed the world’s leading computer manufacturing brand. The increasing cost, counterfeit products, and competitors are severe threats to the company. HP should offer customized products and increase service portfolio by using its brand image and resources.