Hewlett-Packard Company (HP) is one of the world's major information and technology (IT) companies. It was founded by Expenses Hewlett and Dave Packard in 1939. Both of them founded Hewlett-Packard (Horsepower) in Packard's garage area which positioned in Palo Alto, California, USA.
First and the foremost, HP is a worlds' leading Personal computer company. The creation of the new technologies experienced brings us a more meaningful impact for the city. This company had offered many products, solutions, software, solution and service for customers, small and medium size of businesses (SMBs) and large corporations which encompass those customers in the training, federal and health industries. Besides, Horsepower also famous in manufacturing and developing personal computers, data storage, marketing hardware and coming up with software and mailing service. The major products for the business include those personal computing devices, related storage area devices, business servers and also a volume of printers and other imaging that was related to the merchandise and services. Furthermore, the business also makes their profits by market segments their products via online syndication, consumer-electronics and office-supply merchants to the household, small to medium size business and venture.
Planning process is very important step for Horsepower Company in order to accomplish their goal. They had clarified their durability, weakness, opportunities and threat to bolster their company as well. Among the strategies that used by the company is growth strategy. They increase their markets dished up and products made available from soaked up other's company solutions to improve their own products. For example, Horsepower has added a Hand and a mobile operating which known as webOS to its electric device. These solutions had brought HP products turn into a much better and quality products. Therefore, HP had efficiently build an extra value compare to others producer because they had cooperated with the favorite branded sound system company that happen to be ALTEC LANSING and BEATS studio room.
Furthermore, in addition they used some of the competitive strategy in their company to contend their business with other corporation. For example, although Horsepower Company has many rivals such as Acer, Dell, Asus and much more, nevertheless they still may survive until nowadays. One of the factors is because they have their own competitive strategy among each of the business. Hence, this reason which acquired made the HP Company becomes a worldwide information and technology company.
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Definition of SWOT ANALYSIS
SWOT examination is a most readily useful of business examination. SWOT analysis can be an instrument for assessing an organization and its environment. SWOT research is a usually used technique through which managers create a quick impression of your organization's strategic situation. SWOT examination is the first step of planning; it can help managers to give attention to key issues. A SWOT surveys and steps the affects of inner and exterior on the success of the "subject" of evaluation. SWOT means advantages (S), weaknesses (W), opportunities (O), and threats (T). In SWOT, strengths and weaknesses are interior factors, opportunities and risks are external factors. A good SWOT can increase a firm's advantages and opportunities; and also can lessen its weaknesses and dangers.
SWOT Examination of Hewlett-Packard Company
The Horsepower or Hewlett-Packard Company is one of the biggest computer companies on earth. In 1939, it was founded by William Hewlett and David Packard. Hewlett-Packard Company gives hardware, software, solutions and services. Hewlett Packard also offers a solid market position in the IT market.
The biggest competition of Hewlett-Packard Company is Dell Company. Hewlett-Packard wrested market authority from Dell Company in the global PC market in 2006 and managed to preserve it in 2007. Higher market position in several market sections boost the brand image of the company and offers economies of level in attaining. The business faces extreme competition across all business sections in terms of price, brand, quality, identity, technology, range and distribution with their products.
Strengths of HP Company
One of the talents of HP could it be has a solid market position. After HP and Compaq declared to merger On September 3, 2001, HP became the world's most big computers and peripheral company all around the world. There have benefits to Horsepower being a large company such as leading positions in market from it services, management software, Computers, storage area and printers. Especially printer market, 40% market share of Horsepower proofed that its domination the global computer printer market. This merger also helps HP made a higher profit $87 Billion of Global Technology Leader. The other power is that it offers its products and service into more than 170 countries including the undeveloped and the developed countries. In 2008 HP is acquiring EDS Inc. The next strength of HP is often having excellent products collection diversification.
Furthermore, in this 10 years HP has been focused on the client service market. HP Business Customer Services provides successful, effective services to customers all over the world. For instance HP Enterprise Customer Services having Consumer Direct Service, Customer Engagement Management Services- Contact Central, Customer Proposal Management Services- Transformation and Guarantee Service. This might advantage to recruit, keep and compensate customer.
Moreover, Horsepower in just lately years is conducted on Environmental Programs to lessen the environment impact of its technology products. The Environmental Programs have include SmartWay, HP's Eco Features Labeling system, Design for Environment (DfE), HP's Globe Partners Recycler Program, HP's Hardware Go back and Recycling Program, Change the World campaign, and Unlock your time. For instance, HP's Planet Partners Recycling Program is utilized to recycle printing items, computer equipment, batteries, and other items. Due to the program above HP have provide HP's computer take back service in some countries such as United Condition, Canada, Brazil, Australia, the majority of the Europe countries, some Asia Pacific and Latin America countries. This year 2010, HP efficiently produced over 310 million HP LaserJet and printer ink cartridges that contained content from their "closed-loop" recycling process.
Furthermore, the other strength of HP is their business culture. They highlight innovation (Silicon Valley's innovation model- Top professionals mingled with lower-level employees to find fresh ideas) as a key factor of its business culture so that as a drivers of its success. Horsepower put more work on research and development to design and developing products, alternatives and services that foresee the marketplace changing needs, desires, and emerging scientific trends. Horsepower Labs is one with their Corporate Investments portion. HP also spending a larger amount of financial plan on the study and development than others opponents. For instance, in fiscal 2011HP expenses $3. 3 billion for research and development.
Weaknesses of Horsepower Company
One of the weaknesses of Horsepower is high personal debt level. With this decade, HP has a high risk of arrears level compare to the others competitive company like Dell. From HP personal debt to equity proportion data shown that Horsepower was reached the highest value 0. 9292 in this July 31, 2012. Debt to equity proportion is a leverage ratio to indicate the comparative amount of shareholders' collateral and personal debt used to finance a company's property. It shows the way the company has financed its property. A higher debt equity percentage express that the business has been hostile in their funding growth with arrears and it leads to volatile earning.
HP made wrong decide on acquisition for the business. Inside the first 10 years of the millennium, Horsepower had made some acquisitions like merger with Compaq, Mercury Interactive, Electronic Data Systems Corp and recently, Autonomy, the organization software company. Since 2001 Horsepower has been spent more than $67 billion on acquisitions, which data regarding to Jayson Noland, a Robert W. Baird and Company analyst. That was around double HP market value of $38 billion. "They buy at least a corporation a month, and they have battled to understand this right, " Mr. Noland said. For instance, in 2010 2010 Horsepower was purchased Hand with $1. 2 billion. Twelve months later, HP released to close up its webOS device business which is Palm's mobile operating-system.
Opportunities of HP Company
Focusing on emerging technologies-In this modern world, Hewlett Packard Company has introduced new digital printing technology on the part of its visual arts offering. There is a full wireless Horsepower Photosmart computer printer line-up. A couple of Horsepower Indigo presses, Horsepower Inkjet Web Press and Horsepower Latex Inks. This year 2010, Since Hewlett Packard launched this technology, theirs sales is quickly increasing because the digital printing solutions are well suited for students or officials using. In addition, it supplies the consumer to print out the picture and information in the less time.
Developed imaging and stamping solutions segments- Hewlett Packard has launched more 150 products and services in the IT market. After that, Hewlett also offers created some proper to purchase rival and introduced services in the imaging alternatives segment. The imaging and printing alternatives provides consumers to print out and individualize their picture. You will find professional applications, outdoor signage and visual arts. Hewlett Packard also expenses Tabblo, Logoworks, MacDermid and ColorSpan as their acquisitions. Once they purchased the competition, they might improve theirs products and services from the benefits of the acquisitions. The imaging and producing solutions strategy enter to the commercial marketplaces from print out services answers to new progress opportunities in commercial printing and focusing high-value pages in some regions.
Higher market position in the global-There are many competitor began to type in the IT market. Furthermore, Hewlett Packard started to develop theirs business abroad, for illustrations, BRIC countries. They create many contact centres in others countries because they can easy control their product lines and get closer to the buyer. In July 2008, Hewlett Packard, Intel Company and Yahoo produced an internationally, multi-data centre, available source test foundation on cloud processing study and training. Cloud computing is a new delivery model for IT services. The accomplishment of the tasks is to eliminate the financial and logistical problem and build up the relationship of manufacturing, federal government and college. In this particular coming years, the growing demand for cloud computing is expected to build demand for HP's alternatives.
Threats of Horsepower Company
Higher competitive on the market share-The biggest rival of Hewlett Packard is Dell. With this couple of years, the sales of Hewlett Packard tend to be than Dell. However, Hewlett Packard also kept fully to develop theirs business. Hewlett also obtain the most up to date company information available. In addition, there are also some competitors for example Toshiba, Lenova Group and Aver. This all competition in IT market competes in conditions of quality, brand, price, technology, reputation, distribution and range of product. Furthermore, the rivals also face competition from local companies and from generically-branded or white field manufacturers. The printing and processing marketplaces are hyper-competitive. Some nimble competitor will offer you lower prices than Hewlett Packard; it'll direct have an impact on the sales products of Hewlett Packard.
Demands of Hewlett Packard reduces and Economic problem- Because so many competitors get into to IT market, the sales of Hewlett Packard Company began to decrease. Scarcity of the merchandise sales will cause Hewlett Packard get low success. Some forecasters also forecast there have a reduction in the worldwide demand for a few IT products made available from Hewlett Packard Company. Furthermore, there are extensive market segments has damaged by the economic recession. In addition, it affected the information technology. Not merely in the U. S has been damaged, Hewlett Packard also has experienced this drop in its global markets. In 2009 2009, worldwide spending from it market also decreased by 4% and above.
Threats of cloud computing-Cybercriminals always are the first to fully capture the latest internet technology. Cloud computing also becomes their main aim for. The threat is based on cybercriminal's potential to permeate cloud providers' webs and run bot-nets that can inflict destruction within a cloud service. In order that, shared technologies signify shared risk. The greatest case of distributed technologies used in cloud computing is Virtualisation technology. It offers multiple companies to stocks investments and information across a piece of hardware, thereby reduce the costs. Sadly, it also become a way of data can enter the wrong palm.
Question
A. IN-MAY, 2002, Hewlett-Packard merger with Compaq Computer Firm to increase their property and then on May, 2008 HP take acquisition of EDS (Electronic Data System). This acquisition leads to HP getting the combined profits of 118. 4 billion All of us dollars in 2008 and became rank 9 in Bundle of money 500 in '09 2009. At November 2009, HP announced that that they had purchase 3Com Inc. This acquisition reported to be large in term of takeovers and acquisitions of technology giants to help them become one-stop series retailers. After that, this year 2010, HP won in a bidding battle for 3PAR Inc. which their rival declined to match. 3PAR Inc. is a supplier of systems and software for data storage area and information management. This supplier helps HP develop and change their IT products. Inside the same year, HP released the buyout of Palm Inc. The Hand Inc. actually was bidding by HTC, Dell, RIM and HP. Finally, HP gained the bidding by using 1. 2 billion in cash and arrears. This addition of Hand brings HP library of valuable patents like the webOS operating system looked after. This operating platform has enable HP to build up tablet devices. HP TouchPad, HP first developed tablet possessed launched at 1 July 2011. This TouchPad is using the webOS as the operating system and tablet have been said that "it works beautifully, and conveys a lot more information than the iPad 2, " in the mag of THE BRAND NEW York Times. This tablet got brought a new challenge to Apple's product.
B. Based on the annual financial reports of HP, their profit decline 31% in the next one fourth of 2012. The drop of the revenue is as a result of growing of the tablet and smart cell phones or others cellular devices. Horsepower has limited types or group of product and their product is less creative imagination because of the balance strategy. Their sales will continuous to drop if they still do not develop and unveiling some services. Somehow, their main opponents - Samsung gadgets will replace their places in the computer industry and Greenpeace's Guide. This 2 list rates the electronics manufacturers according with their procedures on sustainability, energy and weather and green products. Samsung gadgets grows rapidly and they develop their product in an exceedingly vigorous swiftness, for example their smart telephones Galaxy S2 and SIII. Samsung in addition has established a prominent position in the tablet market, by release the Android-powered Samsung Galaxy Tabs. Furthermore, nowadays, the material prices become unpredictable all the times, Horsepower would face the situation that's they need to purchase expensive materials to create their products. After they using more costly material to manufacture their product, they'll be forced to indicate up their products prices in order to hide back their cost as well. They might facing their market share would be lower and their sales will be lowers also, they'll not making many revenue and at last they would face their company going bankrupt like Nokia now.
Findings
After Horsepower merger with Compaq, Horsepower became the globe largest computer hardware and has a strong market position. This shows that your choice of merging is accurate. The method HP used to make decision is recognized as Decision-Accelerator, which speeds up strategy execution (i. e. execution) process. (M. Z. Deone, 2007). Decision-accelerator would emphasis on velocity and efficiency. Minimizing waste materials and drive toward outcomes are always examined by the facilitators during getting together with. The target is union of ideas with least divergence rather than having deep and durable dedication. Therefore, it is well suited for those senior level or top-level director when resolving distinctions and utilizing large, complicated tactical initiatives. However, there are the bad side of Decision-Accelerator. It handles hard-core decisions and involves limited creativity. Due to acquisitions with other company and improving procedures in laptop PCs, Draw Hurd, the CEO of HP, need to cut down 10% of labor force. But at the end, HP does dominate the global printing device market efficiently. Top of ForBottom of Form
HP Company has its own unique culture which is known as HP way. It really is a standard of manners that emphasized creativity and most of the engineers wish to focus on it. This is because HP respect and trust every individual who will work within the organization. (D. E Kimberly, 2012)Furthermore, toned management hierarchy is employed by the business. By using this hierarchy, levels of middle management that give slow output can be eliminated and increase the task. Employees are also permitted to decide how to their own work predicated on their creativeness. Therefore, this culture allows HP to compete with other rival such as Dell.
In 2011, HP wiped off $3. 3 billion to hide the concluding up of the webOS business which is used on mobile operating-system. This is because there may be less customer and programmer interest. WebOS was developed in about nine month and claimed that company required some shortcut from the idea to creation. According to Mr. Mercer who's recruited by Palm from Apple, fewer programmers are willing to understand webKit and the majority of the top expertise are snatched up by Apple and Google. [1] (X. C Brian, 2012) Therefore, an in depth planning is very important for a company. A company should know the market development and the true use of the IT product before starting. WebOS is an operating system built on a single technology used by many web browsers. Instead of putting it on on mobile, it is advised to be employed on forensic tools. Massive amount information can be extracted from the machine partition of webOS devices. These details includes call logs, SMS, e-mail communications, and other Web surfing around activities. Besides, deleted items could be retrieved through this operating-system. (C. Eoghan, 2011)
As recommendation, HP can increase their sales or profit by decreasing their advertising assets. Once we known, advertising would increase their company expanses and hence they need to increase their cost for their product. If they increased their cost of the merchandise, they have to mark up the market price to hide back the price or they have low profit. It is because large amounts of advertising ventures will lead up with the major decrease in how big is the local market and it further boost the company dependency on the house market rely upon the turmoil. (Harrigan, 2001) Horsepower would increase their risk when they make up their marketing price because their rival will sales out their product which having the same spec with HP's product with cheap. Somehow, they will increase their competitor fame as a result of low value of the merchandise. Although HP diminishes the advertising ventures, it is not stand for that their sales would drop. They could use some low cost advertising ways such like advertise through facebook or gadgets. By this way, they could advertise their product and also won't increase their product's cost.
