SWOT Analysis for Hewlett Packard Enterprise

SWOT Analysis for Hewlett Packard Enterprise

BUS: 402 Strategic Management & Business Policy

When someone hears the name Hewlett Packard, they automatically think computers but initially they did not start out making computers. Hewlett Packard started in 1939 when two classmates from Stanford University, “Bill Hewlett and Dave Packard built a resistance-capacitance audio oscillator (HP 200A), an electronic instrument used to test sound equipment” (MarketLine, 2015, p. 7). Hewlett Packard produced microwaves in 1943 and “entered the computer market in 1966 with the HP 2116A, which was designed to control HP’s product line of test and measurement equipment” (MarketLine, 2015, p. 7)., and the scientific calculator in 1970, but did not produce their first personal computer until the 1980s.

Hewlett Packard is headquartered in California and is a globalized organization with companies throughout the world. Their first customer for the purchase of the HP 200A was Walt Disney who used it to test the sound system for the movie Fantasia. Hewlett Packard “is a global provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the government, health and education sectors” (MarketLine, 2015, p. 3). Hewlett Packard is a name that is recognized worldwide and used by many.

Hewlett Packard started out with just the two friends from college, the organization now have over “300,000 employees worldwide and their operations span across seven business segments: Personal Systems, Enterprise Group, Printing, Enterprise Services, Software, HP Financial Services (HPFS), and Corporate Investments. HP acquired Compaq (and thus the merged remains of DEC, Tandem, and a few other firms)” (CHM, n.d.). Some of Hewlett Packard’s products consist of:

MarketLine (2015, p. 25-26)

MarketLine (2015) states that Hewlett Packard’s main competitors are “Accenture, Acer, Amazon.com, Apple, ASUSTeK Computer, BMC Software, Brother Industries, CA Technologies, Canon U.S.A., and Cisco Systems” (p. 33) to name a few. Also, a few of the competitors have a strong financial presence and being in a competitive market, this can lead HP to lose customers and there may be a decline in the market share of the company.

Financial information provided by Mergent Online shows five years of key financials.

MergentOnline, Company Financials (n.d.)

Performing a SWOT analysis on Hewlett Packard Enterprise will consist of determining the internal perspective based on the strengths and weaknesses of the organization that impacts executives, board members, employees, customers and key performance indicators (KPIs). Whereas the external perspective will be based on the opportunities to invest in and threats to monitor that will impact mega trends, the industry, market and their competitors. Hewlett Packard’s SWOT analysis is shown below:

The strengths of the swot analysis states that “HP is one of the largest technology companies in the world. The company serves close to one billion customers across 170 countries in the world. The company addresses more than 13 billion credit card transactions and 2.4 billion healthcare transactions per year” (MarketLine, 2015, p. 28). Because HP has such a formidable market position, this provides a strong platform for continuous improvements, and the company presents a wide portfolio of products and services that “include Personal Systems, Enterprise Group, Printing, Enterprise Services, and Software” (MarketLine, 2015, p. 29). Hewlett Packard also has an equitable stream of revenue across its segments and increase focus on research and development to strengthen its products and services portfolio.

Weaknesses that Hewlett Packard suffer are a decline in revenue across the different segments, opportunities is that Hewlett Packard has a chance to strengthen their AI portfolio, launch smart devices in the mobile hardware industry as well as strengthen their presence in the mobility market. Acknowledging that Hewlett Packard can do well in other markets, there are some threats that are being faced with the growing need to improve their business model, challenging competitors, the environment and structural downturns.

Areas of Hewlett Packard that has a specific need for change would be to increase their presence in the mobile market. Increasing their mobile presence can reach a broader market, as most everyone has a smartphone or tablet and they are cheaper, smaller, portable and Hewlett Packard can reach their target market as well extend their reach. Artificial Intelligence which is “the theory and development of computer systems able to perform tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making, and translation between language” (Dictionary.com, n.d.) which is why Hewlett Packard has purchased the supercomputing pioneer Cray and “this portfolio will be further strengthened by leveraging Cray’s foundational technologies and adding complementary solutions” (Robinson, 2019, p. 29).

Hewlett Packard’s competitive environment has changed tremendously. Changes in the “competitive environment is reflected in the average revenue distribution of individual products and services, and some challenges they are facing are reduced capital expenditure by customers together with a shrinking of total investment in information technology and declining growth in industries to name a few” (Feurer, Chaharbaghi, & Wargin, 1995, para. 9). Hewlett Packard must strategically think about a model change and make sure that everyone in the organization is working toward one common goal.

Hewlett Packard lead the way to new trends in Healthcare Information systems. “HP Consulting (Hewlett-Packard’s consulting business division) is hardly a newcomer. It has been present in the healthcare sector for more than a decade now–delivering solutions to hospitals all over Spain: ADT Systems; Outpatient Scheduling and Appointment Systems; Advanced Billing Systems; Nursing Care Plan Systems; Shift Management; Multimedia Electronic Patient Records” (New Trends, 2001, para.1) and many more solutions. Hewlett Packard is equipped to handle an always-on infrastructure along with wireless internet and hand-held devices which can capture and send data instantly without the hassle of waiting. Receiving information instantly can be critical in a medical crisis and well as when making business deals, and in this instance, Hewlett Packard is ahead of the pack with technological consulting, infrastructure and information access devices.

References

CHM, (n.d.). Hewlett-Packard Company (HP). Retrieved from: https://www.computerhistory.org/brochures/g-i/hewlettpackard-company-hp/

Dictionary.com (n.d.). Retrieved from: https://www.dictionary.com/browse/artificial-intelligence?s=t

Feurer, R., Chaharbaghi, K., & Wargin, J. (1995). Analysis of strategy formulation and implementation at Hewlett-Packard. Management Decision, (n9). Retrieved from http://search.ebscohost.com.proxy-library.ashford.edu/login.aspx?direct=true&db=edsbig&AN=edsbig.A17844211&site=eds-live&scope=site

Hewlett packard enterprise company (HPE) – financial and strategic SWOT analysis review. (2018). (). London: GlobalData plc. Retrieved from ABI/INFORM Collection Retrieved from https://search-proquest-com.proxy-library.ashford.edu/docview/2214897286?accountid=32521

MarketLine Company Profile: Hewlett Packard Company. (2015). Hewlett Packard Company MarketLine Company Profile (pp. 1–41). Retrieved from http://search.ebscohost.com.proxy-library.ashford.edu/login.aspx?direct=true&db=bsh&AN=110913891&site=eds-live&scope=site

New trends in Healthcare Information Systems: Hewlett Packard leads the way. (Healthcare Information Technology). (2001). Eurowired. Retrieved from http://search.ebscohost.com.proxy-library.ashford.edu/login.aspx?direct=true&db=edsbig&AN=edsbig.A88175607&site=eds-live&scope=site

Robinson, D. (2019). Enterprise Hpc: Why Hpe is buying Cray. Computer Weekly, p. 26-30. Retrieved from http://search.ebscohost.com.proxy-library.ashford.edu/login.aspx?direct=true&db=edb&AN=137416051&site=eds-live&scope=site