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Swot matrix and space matrix for hp

These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets. Based on Fern Fort University extensive research — some of the strengths of HP are — High level of customer satisfaction — the company with its dedicated customer relationship management department has able to achieve a high level of customer satisfaction among present customers and good brand equity among the potential customers.

Successful track record of developing new products — product innovation. This brand portfolio can be extremely useful if the organization wants to expand into new product categories.

  1. It represent a great opportunity for HP to drive home its advantage in new technology and gain market share in the new product category.
  2. It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical.
  3. Financial planning is not done properly and efficiently.

Good Returns on Capital Expenditure — HP is relatively successful at execution of new projects and generated good returns on capital expenditure by building new revenue streams. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in. Strong Free Cash Flow — HP has strong free cash flows that provide resources in the hand of the company to expand into new projects.

Reliable suppliers — It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks. It has successfully integrated number of technology companies in the past few years to streamline its operations and to build a reliable supply chain. Strategy is about making choices and weakness are the areas where an organization can improve using SWOT analysis and build on its competitive advantage and strategic positioning.

HP SWOT Analysis / Matrix

The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories.

HP has to build internal feedback mechanism directly from sales team on ground to counter these challenges. The marketing of the products left a lot to be desired. Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors.

Organization structure is only compatible with present business model thus limiting expansion in adjacent product segments.

  • Strategy is about making choices and weakness are the areas where an organization can improve using SWOT analysis and build on its competitive advantage and strategic positioning;
  • The new technology provides an opportunity to HP to practices differentiated pricing strategy in the new market;
  • New environmental policies — The new opportunities will create a level playing field for all the players in the industry;
  • SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies;
  • Right now the investment in technologies is not at par with the vision of the company.

Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors. One of the reason why the days inventory is high compare to its competitors is that HP is not very good at demand forecasting thus end up keeping higher inventory both in-house and in channel.

High attrition rate in work force — compare to other organizations in the industry HP has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees. Financial planning is not done properly and efficiently. The current asset ratio and liquid asset ratios suggest that the company can use the cash more efficiently than what it is doing at present.

Weighted SWOT Analysis of Hewlett Packard Enterprise Company

Limited success outside core business — Even though HP is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture. Opportunities for HP — External Strategic Factors The new taxation policy can significantly impact the way of doing business and can open new opportunity for established players such as HP to increase its profitability.

A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines. Economic uptick and increase in customer spending, after years of recession and slow growth rate in the industry, is an opportunity for HP to capture new customers and increase its market share. New customers from online channel — Over the past few years the company has invested vast sum of money into the online platform.

This investment has opened new sales channel for HP. In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics.

  • The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding product standards in those markets;
  • Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company's performance.

Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in bank the company can invest in new technologies as well as in new products segments. This should open a window of opportunity for HP in other product categories.

Fern Fort University

The new technology provides an opportunity to HP to practices differentiated pricing strategy in the new market. It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions. Government green drive also opens an opportunity for procurement of HP products by the state as well as federal government contractors.

New environmental policies — The new opportunities will create a level playing field for all the players in the industry. It represent a great opportunity for HP swot matrix and space matrix for hp drive home its advantage in new technology and gain market share in the new product category.

Threats HP Facing - External Strategic Factors New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future. The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding swot matrix and space matrix for hp standards in those markets.

Changing consumer buying behavior from online channel could be a threat to the existing physical infrastructure driven supply chain model. Increasing trend toward isolationism in the American economy can lead to similar reaction from other government thus negatively impacting the international sales.

Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors. Rising raw material can pose a threat to the HP profitability.

Intense competition — Stable profitability has increased the number of players in the industry over last two years which has put downward pressure on not only profitability but also on overall sales. Liability laws in different countries are different and HP may be exposed to various liability claims given change in policies in those markets.

Certain capabilities or factors of an organization can be both a strength and weakness at the same time. This is one of the major limitations of SWOT analysis. For example changing environmental regulations can be both a threat to company it can also be an opportunity in a sense that it will enable the company to be on a level playing field or at advantage to competitors if it able to develop the products faster than the competitors.

SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. The matrix is only a starting point for a discussion on how proposed strategies could be implemented.

It provided an evaluation window but not an implementation plan based on strategic competitiveness of HP SWOT is a static assessment - analysis of status quo with few prospective changes. As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix. SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies.

There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies. Organizations also assess the likelihood of events taking place in the coming future and how strong their impact could be on company's performance.

It also solves the long list problem where organizations ends up making a long list but none of the factors deemed too critical.

  • New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future;
  • Increasing trend toward isolationism in the American economy can lead to similar reaction from other government thus negatively impacting the international sales;
  • This investment has opened new sales channel for HP;
  • The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding product standards in those markets;
  • In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics.

Limitation of Weighted SWOT analysis of HP This approach also suffers from one major drawback - it focus on individual importance of factor rather than how they are collectively important and impact the business holistically.

Porter, Competitive Strategy New York: Free Press, 1980 A. Chandler, Strategy and Structure Cambridge, Mass.: MIT Press, 1962 O. Williamson, Markets and Hierarchies New York: Free Press, 1975 ; L.