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Hewlett Packard: SWOT and GAP Analysis

DDBA 8582: AN HR PLAN FOR ORGANIZATIONAL AGILITY

Looking Ahead

Throughout the course you have examined each component of an HR operating plan. Although each plays an important role in organizations, maintaining agility is an essential part of sustaining an effective HR operating plan. Remaining watchful of HR and even organizational trends will remain an essential part of HR performance management. For this Discussion, review this week’s Learning Resources and explore some of the trends that have developed due to continuing globalization and advances in technology.

Respond to the following:

  • In looking to the futureexplain one evolving HR trend and how it could affect an HR operating plan. 
  • How might the continuing trend of virtual teams or remote workers create strategic possibilities or impediments in an HR operating plan? Explain one example.
  • How might social networks be leveraged in an HR operating plan? Explain one example. 
  •  Describe one-way globalization might change HR overall and how global political unrest might impact the best of HR plans.

Reflections

Reflect upon key lessons derived from this course, in content, discussion, and opposing views. Consider how you might synthesize lessons learned into action plans as an HR leader.

Respond to the following:

In reflecting upon key lessons derived from this course, in content, discussion, and opposing views, how could the possibility of organizational restructuring be accounted for in an HR operating plan? Also, explain how a contingency plan might be developed. 

  •  As a final thought for the course, explain how you would integrate the information you have learned in this seminar into a philosophy of strategic HR efforts.
  • Have your viewpoints changed from when you first began this course? Discuss how your viewpoints changed, if at all, and why.

When you first began this course? Discuss how your viewpoints changed, if at all, and why. 




Answer

SWOT Analysis

Hewlett Packard (HP) is among the global consumer durable giants. It deals in a very wide spectrum of products meant for the consumers as well as businesses. The company has global brand in a range of IT products including desk-top, laptop, photocopy machine, and enjoys global leadership in printers. In this part of the textan analysis of the company’s internal environment – strengths and weaknesses, and external environment – weaknesses and threats (SWOT) is given.

Strength

1.Brand value: The Company has an awesome brand equity commanding a value of $19.3 billion, biggest in the consumer durable segment. It ranks 50th among the top 100 brands in the globe. 

2. Sector rankingHP has marked presence in the IT sector with 10th position. It competes with Apple, Google, and Facebook.

Brand value and sector ranking of IT companies


3. Excellence in productThe Company enjoys a clear competitive advantage in terms of product excellence. Every second the company ships 2 personal computers and 2 printers. It is ranked second in terms of volume of PC shipment. The company enjoys 21.5% share in PC market and 40.5% share in global printer market. 

worldwide Traditional PC shipment and Percentage of worldwide market share


4. Product differentiationProduct differentiation is another source of competitive advantage of the company. The company’s innovation foot-print is clearly visible in HP Spectre a fantastic laptop equipment. Performance and durability of the photocopy machine and printer meant for bulk production are also superb in performance and durability. 

5. Research and DevelopmentThe company spends fabulous amount on research and development in order to stay ahead of rivals in technology implementation. The R&D activities of the company are deeply focused on technological innovation a key growth driver for the company.

R&D Expenditure of HP

6.Marketing:The company spends considerable amount on marketing. The company I known for smart and penetrating ads for its products.

Weaknesses

1. Declining demandHP’s core business, printers, is declining steadily since 2012 by 4.04% per year. This is due prevalence of mobile devices in the era of booming mobile technologies (Poletti, 2018). 

2. Declining earnings: Earnings of the company has $2,666 million to $2,526 million from 2016 to 2017 (HP Annual Reports, 2017). 

3. Poor after sales service: Quality of desktop and laptop after sales service of the company has drastically declined (Marketing91, 2018).

Earning of HP from 2007-2017

Opportunities

1. High potential of Hyper-converged infrastructure in cloud marketing:The company is focusing on expansion of integrated system in cloud marketing (Networkworld, 2017).

2. Global growth opportunity of 3D printersThe global 3D printer market is projected to grow at CAGR 30.2% from 2017 to 2022. Thus total market size would increase from US$5.933 billion in 2017 to US$22.200 billion by 2022 (Businesswire, 2017). 

3. Projected growth of electronics market: The global electronic market is poised to grow by 2.7% CAGR till 2019, to reach $299 billion (Marketing91, 2018).

Threats

1. Declining product line: Growth of PC has declined globally (Marketing91, 2018).

2. New product from Dell: Dell's launch of a new mono laser based MFP will add a new competitive market segment against HP (EE Times, 2018).

3. Competition: The company is facing increasing competition from Apple, Acer, Lenovo, Dell, Toshiba, Lenovo, and Samsung in the PC segment, and from Canon, Lexmark, Epson, Seiko, and Xerox in printer segment ((Marketing91, 2018).

SWOT Matrix

        

 
 
 
 Helpful
 
 Harmful
 
 Internal
 
 Strength
  •    Brand value
  • Sector ranking
  • Excellence in product
  • Marketing

 Weakness
  •    Declining demand
  • Declining earnings
  • Poor after sales service
 External
 
 Opportunities
  •    High potential of Hyper-converged infrastructure in cloud marketing
  • Global growth opportunity of 3D printers
  • Projected growth of electronics market

 
 
 Threat
  •   Declining product line
  • New product from Dell
  • Competition


 

Gap Analysis

Gap analysis refers to the technique of determining steps to be taken for moving from current state to desired future state. It shows what the business is doing today and what the business will do tomorrow.

Gap Matrix 

                    

 Objective
 
 Current state
 
 Future state
 
 Gap identification
 
 Gap  
 description
 
 Factors
 
 Remedial  
 action
 
 To increase annual revenue  
 
 $2,526 million
 
 $3,000
 million
 
 Yes
 
 $472 million
 
 Decrease in sales
 
 Better marketing strategy
 
 To earn profit of 8% of sales
 
 5% of sales
 
 8% of sales
 
 Yes
 
 3% of sales
 
 Increase in production cost
 
 Business process re-engineering
 


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