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Hewlett Packard Company Analysis. Kylar Ferguson, Miguel Valencia, Vincent Condor, Jessica Sorey. Financial Overview. Overall revenue rose 7.9% in 2017 ($52.2 billion) Foreign growth rate of 8.4% Gross margin fell 0.3% Revenue on personal computers rose 11.3% in 2017 to $33 billion)
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Hewlett Packard Company Analysis Kylar Ferguson, Miguel Valencia, Vincent Condor, Jessica Sorey
Financial Overview • Overall revenue rose 7.9% in 2017 ($52.2 billion) • Foreign growth rate of 8.4% • Gross margin fell 0.3% • Revenue on personal computers rose 11.3% in 2017 to $33 billion) • Printer sales rose slightly to $18.8 billion
Management • CEO issues from 1999-2015 • Innovation and cost cutting • Stock prices?
Competitive Strength • Provide a wide array products to consumers in many different market segments all over the world • HP is currently the leading PC market • HP has a strong brand image • Focus highly on quality products and customer service
Premium PC & Gaming Systems • Premium PC market valued at $18.8 billion and Gaming systems market valued at $2 billion • HP currently has over 30% market share in the premium categories • HPs growth can be attributed to their ability to charge higher prices for their products • HP is able to outperform Dell, Lenovo, and Apple in market growth • 2017 second quarter Premium PC market expansion • 5.4% • 2.4% • - 8.4%
Continued Innovation • People are transitioning from from a standard PC to tablets • HP ramins competitive through their “detachable” product line • Elite x2 1013 detachable • HP ZBook x2 G4 Touch screen 2 in 1 Mobile workstation
HP Jet Fusion 3D Printers • Printers have been one of HPs core competencies • HPs Jet fusion 3D printers have continued that legacy • HP Jet Fusion 3d Printers • 10X faster than competitors • Prints at half the cost of competitors • Target customers • Shoe Companies • Car companies • Medical companies • Prosthetic Companies
HP Way • Management style developed by the HP founders • Trust and respect for the individual • Focus on a high level of achievement and contribution • Conducting the business with uncompromising integrity • Achieving our common objectives throughteamwork • Encourageflexibility and innovation • The company exists make technical contributions for the advancement and welfare of humanity
Cost Obstacles • Rising Commodity costs • Continuously increasing demand for raw materials • Decrease in the availability of raw materials • EX: Southwest Airlines purchasing large quantity of jet fuel before the price rose • Hard drive capacity • Currently only offer 1TB • External hard drives steal a lot of sales
S.W.O.T Analysis • Strengths • Brand evaluation of 19.3 billion in 2002. • Ranked 50th overall amongst the top 100 companies in the world • Weakness • World demand for printers and personal computer dropped by 8.3% in 2015 • the net revenue for desk PC’s has dropped by 17%, 2% in notebook PC’s, 9% in workstations and 8% amongst the rest of the industry revenues.
S.W.O.T Analysis Continued • Opportunities • demand for computer and computer parts only seems to be growing with the population increase. • They have been in business for a while • The 3D Market is expected to grow upwards of 30.2 billion dollars by 2022 and 94.9 billion in 2024. • Threats • The smartphone • Overall personal computer growth has slowed down.
Strategies • Product Development Strategy • The 2002 Compaq merge • Access to Palm mobile software program • Boosted HP to become no. 1 in overall in storage and no. 2 in servers