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Information Technology Services. Brian Phelan. Agenda. Industry Statistics Industry Supply Chain & Economic Drivers Industry Structure Hewlett-Packard Background Hewlett-Packard SWOT Analysis. Key Statistics. Source: Ibis World US. Industry Supply Chain. Source: Ibis World US.
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Information Technology Services Brian Phelan
Agenda • Industry Statistics • Industry Supply Chain & Economic Drivers • Industry Structure • Hewlett-Packard Background • Hewlett-Packard SWOT Analysis
Key Statistics Source: Ibis World US
Industry Supply Chain Source: Ibis World US
Corporate Profit & Industry Employment Source: Ibis World US
Industry Structure Source: Ibis World US
Industry Structure Source: Ibis World US
Hewlett-Packard Background • Founded in 1939 • Offers: personal computing, imaging and printing products and services, enterprise information technology infrastructure, and multi-vendor customer services • $112,298,000,000 total 2013 revenue Source: Ibis World US
HP 2013 Earnings Statement Source: HPX 10k
HP SWOT Analysis Source: OvidijusJurevicius at Strategic Management Insights
Strengths • China • Economy growing by ≈8% • Increased investment and offerings • Brand reputation • 15% PC market share • HP brand valued at $26bn • Diversified products • More diversified than competitors • Moving from PCs to enterprise solutions and services Source: OvidijusJurevicius at Strategic Management Insights
Weaknesses • Poor acquisitions • 50 acquisitions in last 10 years majority failures • Autonomy $11bn purchase → $8.8bn write down • 29% of income from PCs • PC market is mature • Projected slow growth followed by decline • Low tablet market share • High projected market growth • Slate and TouchPad lack of success Source: OvidijusJurevicius at Strategic Management Insights
Opportunities • Grow services and enterprise solutions • Highest profit margin of HP businesses • Increase demand for cloud services • 22% growth rate from 2011 to 2020 • $240bn value by 2020 • Acquisition of tech patents • Large cash reserve to use in acquisitions Source: OvidijusJurevicius at Strategic Management Insights
Threats • Increased competition • High profit margins increase firm entrance • Low barriers to entry • Slow PC market growth • Tablets are replacing PCs • Saturation of PC market • Technological Changes • Rapid tech changes in industry • First to adopt new technology has advantage Source: OvidijusJurevicius at Strategic Management Insights