HP is an international giant in the information technology industry. The company offers a wide product portfolio from personal computers (PC), notebooks, serves, storage, printers, scanners, and digital camera to IT services. The company features a phenomenal growth history and has developed from a “garage” with a working capital of $538 in 1938 to a leading global provider with $100 billion revenue. However the global competition becomes fiercer today and HP has to face with different competitors in all business segments. Can HP continue its success story and beat the global competitors? This question will be tried to answer in the present study.
In this study the internal and external environment factors effecting HP’s business are analyzed. Thereby industry’s economic features and competitive environment, e.g. market segments, market size and growth, trends, competition, and driving forces are studied. Moreover, the SWOT of HP and its biggest global competitors as well as financial performance of HP over the last three business years (2005 – 2007) are analyzed. The diversified business portfolio of HP is evaluated using the Nine Cell Matrix and concrete recommendations for the senior management board of HP are provided.
It could be shown that despite fierce competition HP could remain its pole position in the world market. HP is worldwide No. 1 in the printing, PC, and server market and No. 2 in storage business. HP exhibited an impressive financial performance in the last 3 years. For the future HP should intensify strategic alliances and partnerships and boost the acquisition to strengthen competitive capability and to gain market share quickly. The company should follow strategies like rapid expanding into new geography markets, rapid product development and push the product innovation, penetration also in low-end market segments, expanding into online sale and business, and offering complete solution based on broad portfolio in order to meet customer needs. Moreover HP should improve its supply chain management, optimize manufacturing cost, and strengthen the effective marketing and channel partnership to boost the completive strengths.
Table of Contents
- Executive Summary
- Introduction
- Main Part
- Economic features of the industry segments
- IT Services
- Personal computers (PC)
- Enterprise Storage and Servers
- Imaging and Printing
- HP - a short overview
- Analysis of the financial performance of HP (2005 – 2007)
- SWOT analysis of HP and its biggest global competitors
- SWOT analysis of HP
- SWOT analysis of IBM
- SWOT analysis of Dell
- Evaluation of HP's business portfolio using Nine Cell Matrix
- Recommendations for HP
- Economic features of the industry segments
- Conclusion
Objectives and Key Themes
This study aims to analyze Hewlett-Packard's (HP) competitive position in the global IT market and assess its chances of maintaining its success against major competitors. It examines HP's internal and external environment, financial performance, and strategic options.
- Analysis of HP's competitive landscape within various IT market segments.
- Evaluation of HP's financial performance and key strengths and weaknesses.
- Assessment of the competitive strengths and weaknesses of HP's main rivals (e.g., IBM, Dell).
- Strategic recommendations for improving HP's competitive position and future growth.
- Application of strategic management frameworks (e.g., Nine Cell Matrix) to analyze HP's business portfolio.
Chapter Summaries
Introduction: This chapter introduces the subject of the study, focusing on Hewlett-Packard's (HP) position as a global IT giant and its competitive challenges. It establishes the main question of whether HP can continue to outperform its global competitors and outlines the approach taken to answer this question. The chapter lays the foundation for the detailed analysis that follows in subsequent sections. It sets the stage by briefly introducing HP's history, its diverse product portfolio, and the competitive intensity of the global IT market.
Main Part: Economic features of the industry segments: This section delves into the economic characteristics of the specific IT industry segments in which HP operates. It analyzes various aspects including market size, growth rates, competitive intensity, trends and driving forces within IT services, personal computers (PCs), enterprise storage and servers, and imaging and printing. It provides a detailed economic context for understanding HP's performance within each of these critical market segments. The analysis likely includes detailed data on revenue, market share and industry growth, providing a crucial background for further chapters.
Main Part: HP - a short overview: This chapter provides a concise overview of Hewlett-Packard's history, structure, and overall business model. It is likely to cover the company’s evolution from its humble beginnings to its current status as a major player in the IT industry. This provides the necessary context for understanding HP's current position and capabilities, setting the stage for a deeper analysis of its performance and strategic options. This overview likely includes information on key product lines, organizational structure, and overall business strategy.
Main Part: Analysis of the financial performance of HP (2005-2007): This chapter provides a comprehensive analysis of HP's financial performance over a three-year period (2005-2007). The analysis likely involves examination of key financial indicators such as revenue, earnings, profitability, and market capitalization. The purpose is to assess HP's financial health and provide insights into its overall business performance during that period. This lays a foundation for understanding HP’s ability to invest, grow, and respond to competitive pressures.
Main Part: SWOT analysis of HP and its biggest global competitors: This section performs a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of HP and its key competitors such as IBM and Dell. This involves identifying and evaluating HP's internal strengths and weaknesses alongside the opportunities and threats present in the external business environment. A similar analysis is conducted for each of the major competitors, providing a comparative framework to gauge HP’s relative competitive advantage. This analysis allows for a comparison of strengths and weaknesses, leading to a clearer understanding of HP's competitive standing.
Main Part: Evaluation of HP's business portfolio using Nine Cell Matrix: This chapter uses the Nine Cell Matrix to evaluate HP's diverse business portfolio. This technique assesses each business unit based on its market attractiveness and the company's competitive strength within that unit. The results offer insights into the strategic priorities for resource allocation and portfolio management within HP. This strategic framework helps identify areas for investment and divestment, and provides a more granular look at the company's diverse product lines.
Main Part: Recommendations for HP: This chapter presents concrete recommendations for HP's senior management based on the findings from the preceding analysis. This will likely involve suggestions for improving competitive capabilities, enhancing market share, optimizing cost structures and improving strategic positioning. The recommendations will incorporate insights from the SWOT analysis, the Nine Cell Matrix evaluation, and the financial performance assessment, resulting in a cohesive set of actionable suggestions.
Keywords
Hewlett-Packard, global competition, IT industry, strategic management, financial performance, SWOT analysis, Nine Cell Matrix, competitive advantage, market share, strategic alliances, product innovation, supply chain management.
HP Competitive Analysis: Frequently Asked Questions
What is the main focus of this study?
This study analyzes Hewlett-Packard's (HP) competitive position in the global IT market, assessing its ability to maintain success against major competitors like IBM and Dell. It examines HP's internal and external environments, financial performance, and strategic options.
What aspects of HP are analyzed in this study?
The study covers a wide range of aspects, including HP's competitive landscape across various IT market segments (IT Services, PCs, Enterprise Storage & Servers, Imaging & Printing), its financial performance (2005-2007), a SWOT analysis of HP and its key competitors, and an evaluation of HP's business portfolio using the Nine Cell Matrix. The study concludes with strategic recommendations for HP's future growth and competitive advantage.
Which IT market segments are examined in detail?
The study specifically examines the economic features of four key IT market segments: IT Services, Personal Computers (PCs), Enterprise Storage and Servers, and Imaging and Printing. This includes analysis of market size, growth rates, competitive intensity, and key trends within each segment.
What is the timeframe used for the financial performance analysis?
The financial performance of HP is analyzed over a three-year period, from 2005 to 2007. Key financial indicators such as revenue, earnings, profitability, and market capitalization are examined.
Which companies are included in the competitive analysis?
Besides HP, the study includes a comparative SWOT analysis of two major global competitors: IBM and Dell. This allows for a direct comparison of strengths, weaknesses, opportunities, and threats.
What strategic management framework is applied?
The Nine Cell Matrix is used to evaluate HP's business portfolio. This framework helps assess the market attractiveness and competitive strength of each of HP's business units, guiding strategic resource allocation and portfolio management.
What type of recommendations are provided?
The study concludes with concrete recommendations for HP's senior management. These recommendations are designed to improve HP's competitive capabilities, enhance market share, optimize cost structures, and improve overall strategic positioning. The recommendations are informed by the SWOT analysis, the Nine Cell Matrix evaluation, and the financial performance assessment.
What are the key words associated with this study?
Key words include: Hewlett-Packard, global competition, IT industry, strategic management, financial performance, SWOT analysis, Nine Cell Matrix, competitive advantage, market share, strategic alliances, product innovation, and supply chain management.
What is included in the provided document preview?
The preview includes the table of contents, objectives and key themes, chapter summaries, and key words. It provides a comprehensive overview of the study's scope and findings.
What is the overall objective of the study?
The primary objective is to determine whether HP can continue to outperform its global competitors and to provide actionable recommendations for maintaining and enhancing its competitive position within the global IT market.
- Quote paper
- Dr. Khanh Pham-Gia (Author), 2008, Case study: Hewlett-Packard – Any chance to beat its global competitors?, Munich, GRIN Verlag, https://www.grin.com/document/132249
