HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

Case Study SWOT Analysis Solution

Case Study Description of HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version

In spring 1998, Pradeep Jotwani, vice president and general manager of the Consumer Products Business Organization of the Hewlett-Packard Co. (HP), was contemplating the increasing success of e-commerce and its implications for his division. The consumer products group had started selling refurbished printers through an Internet outlet center in December 1997, but Jotwani was now considering a move to sell new printers directly to consumers via this new channel. If he were to make such a move, he wondered which products to sell online at what prices, and how to communicate this strategy to the channel partners without damaging the existing distribution structure.

Authors :: Rajiv Lal, Edith D. Prescott, Kirthi Kalyanam

Topics :: Sales & Marketing

Tags :: Marketing, Pricing, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis

Swot Analysis of "HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version" written by Rajiv Lal, Edith D. Prescott, Kirthi Kalyanam includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Printers Jotwani facing as an external strategic factors. Some of the topics covered in HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version case study are - Strategic Management Strategies, Marketing, Pricing and Sales & Marketing.

Some of the macro environment factors that can be used to understand the HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, increasing energy prices, geopolitical disruptions, technology disruption, wage bills are increasing, there is increasing trade war between United States & China, increasing transportation and logistics costs, challanges to central banks by blockchain based private currencies, etc

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Introduction to SWOT Analysis of HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version

SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Printers Jotwani, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Printers Jotwani operates in.

According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.

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SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix

SWOT analysis of HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version can be done for the following purposes –
1. Strategic planning using facts provided in HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version case study
2. Improving business portfolio management of Printers Jotwani
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Printers Jotwani

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Strengths HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The strengths of Printers Jotwani in HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version Harvard Business Review case study are -

Strong track record of project management

– Printers Jotwani is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.

High switching costs

– The high switching costs that Printers Jotwani has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.

Effective Research and Development (R&D)

– Printers Jotwani has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.

Diverse revenue streams

– Printers Jotwani is present in almost all the verticals within the industry. This has provided firm in HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.

Learning organization

- Printers Jotwani is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Printers Jotwani is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version Harvard Business Review case study emphasize – knowledge, initiative, and innovation.

Cross disciplinary teams

– Horizontal connected teams at the Printers Jotwani are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.

Operational resilience

– The operational resilience strategy in the HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.

Low bargaining power of suppliers

– Suppliers of Printers Jotwani in the sector have low bargaining power. HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Printers Jotwani to manage not only supply disruptions but also source products at highly competitive prices.

Superior customer experience

– The customer experience strategy of Printers Jotwani in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.

Sustainable margins compare to other players in Sales & Marketing industry

– HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version firm has clearly differentiated products in the market place. This has enabled Printers Jotwani to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Printers Jotwani to invest into research and development (R&D) and innovation.

Successful track record of launching new products

– Printers Jotwani has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Printers Jotwani has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.

High brand equity

– Printers Jotwani has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Printers Jotwani to keep acquiring new customers and building profitable relationship with both the new and loyal customers.

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Weaknesses HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The weaknesses of HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version are -

Compensation and incentives

– The revenue per employee as mentioned in the HBR case study HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version, is just above the industry average. Printers Jotwani needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.

High dependence on star products

– The top 2 products and services of the firm as mentioned in the HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Printers Jotwani has relatively successful track record of launching new products.

Employees’ incomplete understanding of strategy

– From the instances in the HBR case study HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version, it seems that the employees of Printers Jotwani don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.

High cash cycle compare to competitors

Printers Jotwani has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.

Ability to respond to the competition

– As the decision making is very deliberative, highlighted in the case study HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version, in the dynamic environment Printers Jotwani has struggled to respond to the nimble upstart competition. Printers Jotwani has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.

Slow decision making process

– As mentioned earlier in the report, Printers Jotwani has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Printers Jotwani even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.

No frontier risks strategy

– After analyzing the HBR case study HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version, it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.

Lack of clear differentiation of Printers Jotwani products

– To increase the profitability and margins on the products, Printers Jotwani needs to provide more differentiated products than what it is currently offering in the marketplace.

Products dominated business model

– Even though Printers Jotwani has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version should strive to include more intangible value offerings along with its core products and services.

Workers concerns about automation

– As automation is fast increasing in the segment, Printers Jotwani needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.

High dependence on existing supply chain

– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Printers Jotwani supply chain. Even after few cautionary changes mentioned in the HBR case study - HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Printers Jotwani vulnerable to further global disruptions in South East Asia.

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Opportunities HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The opportunities highlighted in the Harvard Business Review case study HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version are -

Redefining models of collaboration and team work

– As explained in the weaknesses section, Printers Jotwani is facing challenges because of the dominance of functional experts in the organization. HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.

Identify volunteer opportunities

– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Printers Jotwani can explore opportunities that can attract volunteers and are consistent with its mission and vision.

Leveraging digital technologies

– Printers Jotwani can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.

Developing new processes and practices

– Printers Jotwani can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.

Lowering marketing communication costs

– 5G expansion will open new opportunities for Printers Jotwani in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.

Remote work and new talent hiring opportunities

– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Printers Jotwani to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Printers Jotwani to hire the very best people irrespective of their geographical location.

Building a culture of innovation

– managers at Printers Jotwani can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.

Using analytics as competitive advantage

– Printers Jotwani has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Printers Jotwani to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.

Increase in government spending

– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Printers Jotwani can use these opportunities to build new business models that can help the communities that Printers Jotwani operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.

Manufacturing automation

– Printers Jotwani can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.

Harnessing reconfiguration of the global supply chains

– As the trade war between US and China heats up in the coming years, Printers Jotwani can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.

Better consumer reach

– The expansion of the 5G network will help Printers Jotwani to increase its market reach. Printers Jotwani will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.

Finding new ways to collaborate

– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Printers Jotwani can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.

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Threats HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis

The threats mentioned in the HBR case study HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version are -

Increasing international competition and downward pressure on margins

– Apart from technology driven competitive advantage dilution, Printers Jotwani can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version .

Trade war between China and United States

– The trade war between two of the biggest economies can hugely impact the opportunities for Printers Jotwani in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.

Aging population

– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.

Increasing wage structure of Printers Jotwani

– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Printers Jotwani.

Stagnating economy with rate increase

– Printers Jotwani can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.

High dependence on third party suppliers

– Printers Jotwani high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.

Barriers of entry lowering

– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Printers Jotwani with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.

Backlash against dominant players

– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Printers Jotwani business can come under increasing regulations regarding data privacy, data security, etc.

Easy access to finance

– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Printers Jotwani can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.

Technology acceleration in Forth Industrial Revolution

– Printers Jotwani has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Printers Jotwani needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.

Technology disruption because of hacks, piracy etc

– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.

Environmental challenges

– Printers Jotwani needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Printers Jotwani can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.

High level of anxiety and lack of motivation

– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Printers Jotwani needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.

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Weighted SWOT Analysis of HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version Template, Example

Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants. We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –

First stage for doing weighted SWOT analysis of the case study HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.

Second stage for conducting weighted SWOT analysis of the Harvard case study HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.

Third stage of constructing weighted SWOT analysis of HP Consumer Products Business Organization: Distributing Printers via the Internet, Spanish Version is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Printers Jotwani needs to make to build a sustainable competitive advantage.

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