Discussion: SWOT Analysis

I worked at Hewlett-Packard from 2009 - 2014 as an editor for HP Printables. This was a product that allowed consumers to print on demand or scheduled newspapers and other content (crossword puzzles, coloring pages) from their web-connected printer. 

My team was organized into an R&D unit within the HP printer division (home to everything from HP DeskJet / OfficeJet printers to printer cartridge (pen) design and two-story “web” presses for industrial application). That team is based at the HP site in Corvallis, Ore. At one time, that site housed 10,000 employees (surprise, there are more than 10,000 people in Oregon!) in a town of 60,000. Today, there are fewer than 2,000 employees at that site. 

Strengths

• International manufacturing, marketing and distribution capabilities
• International name brand recognition for consumer, SMB and enterprise electronics
• International leader in printers, print cartridges and scanners

Weaknesses

• Distributed functional teams are slow-moving and have trouble managing priorities across BUs
• Recent hardware developments (HP TouchPad, Envy Laptops) are second-class
• Recent leadership changes have led to drastic business strategy changes (Mark Hurd, Cathie Lesjak, Léo Apotheker, Meg Whitman)
• Carly Fiorina’s bid for the GOP presidential nomination - and inherent rehash of her “failure” - is not boosting anyone’s confidence in HP

Opportunities

• Corporate relationships and brand recognition provide opportunity to win big on enterprise services - including cloud services, software and hardware. This is part of Meg Whitman’s strategy to split HP into two companies - HP Enterprise and HP Inc.
• Expertise in printing and manufacturing could provide opportunity to outdo competitors in emerging technologies like 3D printing. This will be the domain of HP Inc. led by Dion Weisler.
• Though HP manages all elements of the design and distribution of it’s hardware, it has yet to a) open retail stores or b) do 100% of manufacturing (component manufacture is outsourced) of its hardware. These could provide vertical integration opportunities.

Threats 

• Revenue from traditional consumer, SMB and enterprise printing is declining rapidly. For decades, revenue from print cartridges provided dollars for investment in R&D as well as supported other functions.
• At one time, HP was a leading manufacturer of office and industrial products like calculators, ASCII terminals, electronic test equipment (all before there were “PCs”). However, as HP moved to inkjet / laser printing and scanning technology, it lost traction on potential advances personal computers, mobile devices and tablets. 
• A quick scan of the jobs numbers shows that HP has shed 91,000 jobs since 2012. You can assume that these roles didn’t just dry up. The company has replaced much of its core workforce with contract and outsourced employees. From personal experience, this has caused the company to lose sight of its core tenets (“the HP way”) and innovative culture. 

http://www.hpmuseum.net/divisions.php?did=18
http://www8.hp.com/us/en/hp-news/press-release.html?id=1809455#.VhbI8BNVhBc