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Hewlett-Packard SWOT Analysis

Strengths
Hewlett-Packard is a global technology company and after its merger with Compaq it became world’s biggest computer hardware and peripherals company in the world, ranking 20 in the Fortune 500 list. Company is doing business in more then 170 countries including the ones that are developing and under-developed.
Hewlett-Packard generated nearly $6.1 billion in cash flow from its operations and increased its cash and equivalents by 3 billion in 2003 (Datamonitor, 2004).

Weaknesses
Hewlett-Packard’s majority of earnings are coming from its printing supplies division. This makes the company’s total earnings extremely sensitive to this segment. which is a potential weakness for HP.

Opportunities
Hp expects recovery in the personal computer market during 2004. The company launched more then 150 products between 2003 and 2004. Product launches are expected to support the growth of higher margin.

Threats
There is a great pricing pressure in the overall PC market. Dell is a strong competitor and has a focus on the standardized computer markets. The company eliminates inventories more efficiently then any of its competitors which is a main threat for HP.
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