Hp Company Swot Analysis

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Hewlett-Packard SWOT Analysis

Strengths Hewlett-Packard is a global technology company and after its merger with Compaq it became world 's biggest computer hardware and peripherals company in the world, ranking 20 in the Fortune 500 list. Company is doing business in more then 170 countries including the ones that are developing and under-developed. Being a large company gives HP many advantages like dominating the market for printers, both laser and inkjet, and both for consumers and companies using the economies of scale. The company is also taking an active role in developing the capacity of new markets all around the world, engaging with other multinational corporations, non-governmental organizations and other world
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The company has a leadership in public and wireless local-area networks which enables HP to integrate its printing products and softwares using Bluetooth technology so that people can even print from their mobile phones. The company also focuses on Internet-protocol (IP) telephone technology to leverage networks for voice and video communication that drives cost savings for service providers and customers which is an important strength among competitors.
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. HP also lost shares in the PC and server markets between 2002-2003 while its top competitors Dell and IBM increased their shares in the same period. The company 's profitability is currently very low at the server and storage markets. Some analysts evaluate HP 's weak peformance as signaling a trend for IT spending (Rivlin, 2004).

Opportunities Hp expects recovery in the personal computer market during 2004. The company launched more then 150 products between 2003 and 2004. Product launches are expected to support the growth of higher margin. HP is currently seeking opportunities in the Business Process Outsourcing area which IBM indicated

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