HP: The Computer is Personal Again SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of HP: The Computer is Personal Again
To maximize their effectiveness, color cases should be printed in color.In September 2008, Todd Bradley, executive vice president of Hewlett-Packard Company's Personal Systems Group (PSG) gathered his thoughts before a meeting with his top executives and managers for product design and marketing. On the agenda was a discussion of strategic next steps for the group. Hewlett-Packard (HP), a technology company providing a wide range of products and services including computers, handheld devices, servers and digital entertainment, employed 172,000 people and posted $104 billion in sales in 2007. PSG, one of HP's three major divisions, offered notebook and desktop personal computers, handheld mobile computing devices, monitors, workstations, and related support services. Bradley's PSG had played an important role in HP's financial success over the previous three years.
Swot Analysis of "HP: The Computer is Personal Again" written by Rajiv Lal, Catherine Ross includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Psg Hp's facing as an external strategic factors. Some of the topics covered in HP: The Computer is Personal Again case study are - Strategic Management Strategies, Customers, Financial management, International business, IT and Sales & Marketing.
Some of the macro environment factors that can be used to understand the HP: The Computer is Personal Again casestudy better are - – wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy, digital marketing is dominated by two big players Facebook and Google, talent flight as more people leaving formal jobs, challanges to central banks by blockchain based private currencies, competitive advantages are harder to sustain because of technology dispersion, increasing household debt because of falling income levels,
banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, etc
Introduction to SWOT Analysis of HP: The Computer is Personal Again
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in HP: The Computer is Personal Again case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Psg Hp's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Psg Hp's 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.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of HP: The Computer is Personal Again can be done for the following purposes –
1. Strategic planning using facts provided in HP: The Computer is Personal Again case study
2. Improving business portfolio management of Psg Hp's
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 Psg Hp's
Strengths HP: The Computer is Personal Again | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Psg Hp's in HP: The Computer is Personal Again Harvard Business Review case study are -
Highly skilled collaborators
– Psg Hp's has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in HP: The Computer is Personal Again HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Training and development
– Psg Hp's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in HP: The Computer is Personal Again Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to recruit top talent
– Psg Hp's is one of the leading recruiters in the industry. Managers in the HP: The Computer is Personal Again are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Psg Hp's 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 Psg Hp's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in HP: The Computer is Personal Again Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Psg Hp's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Psg Hp's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Superior customer experience
– The customer experience strategy of Psg Hp's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Organizational Resilience of Psg Hp's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Psg Hp's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Effective Research and Development (R&D)
– Psg Hp's 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: The Computer is Personal Again - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Low bargaining power of suppliers
– Suppliers of Psg Hp's in the sector have low bargaining power. HP: The Computer is Personal Again has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Psg Hp's to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Psg Hp's is present in almost all the verticals within the industry. This has provided firm in HP: The Computer is Personal Again 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.
Analytics focus
– Psg Hp's is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Rajiv Lal, Catherine Ross can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Sustainable margins compare to other players in Sales & Marketing industry
– HP: The Computer is Personal Again firm has clearly differentiated products in the market place. This has enabled Psg Hp's to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Psg Hp's to invest into research and development (R&D) and innovation.
Weaknesses HP: The Computer is Personal Again | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of HP: The Computer is Personal Again are -
Aligning sales with marketing
– It come across in the case study HP: The Computer is Personal Again that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case HP: The Computer is Personal Again can leverage the sales team experience to cultivate customer relationships as Psg Hp's is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study HP: The Computer is Personal Again, in the dynamic environment Psg Hp's has struggled to respond to the nimble upstart competition. Psg Hp's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Psg Hp's, firm in the HBR case study HP: The Computer is Personal Again needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Slow decision making process
– As mentioned earlier in the report, Psg Hp's 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. Psg Hp's 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.
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 Psg Hp's supply chain. Even after few cautionary changes mentioned in the HBR case study - HP: The Computer is Personal Again, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Psg Hp's vulnerable to further global disruptions in South East Asia.
Capital Spending Reduction
– Even during the low interest decade, Psg Hp's has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High cash cycle compare to competitors
Psg Hp's 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.
High operating costs
– Compare to the competitors, firm in the HBR case study HP: The Computer is Personal Again has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Psg Hp's 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Psg Hp's is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Psg Hp's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Psg Hp's to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Psg Hp's has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Psg Hp's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study HP: The Computer is Personal Again can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Opportunities HP: The Computer is Personal Again | 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: The Computer is Personal Again are -
Loyalty marketing
– Psg Hp's has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Building a culture of innovation
– managers at Psg Hp's 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Psg Hp's 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: The Computer is Personal Again, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Psg Hp's has opened avenues for new revenue streams for the organization in the industry. This can help Psg Hp's to build a more holistic ecosystem as suggested in the HP: The Computer is Personal Again case study. Psg Hp's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Psg Hp's can use these opportunities to build new business models that can help the communities that Psg Hp's operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Psg Hp's in the consumer business. Now Psg Hp's can target international markets with far fewer capital restrictions requirements than the existing system.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Psg Hp's to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Buying journey improvements
– Psg Hp's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. HP: The Computer is Personal Again suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Psg Hp's 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Psg Hp's can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
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. Psg Hp's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Psg Hp's is facing challenges because of the dominance of functional experts in the organization. HP: The Computer is Personal Again 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.
Manufacturing automation
– Psg Hp's 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.
Threats HP: The Computer is Personal Again External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study HP: The Computer is Personal Again are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Psg Hp's 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 Psg Hp's business can come under increasing regulations regarding data privacy, data security, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Psg Hp's.
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.
Consumer confidence and its impact on Psg Hp's demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Technology acceleration in Forth Industrial Revolution
– Psg Hp's has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Psg Hp's 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Psg Hp's 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.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Psg Hp's in the Sales & Marketing sector and impact the bottomline of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Psg Hp's will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
High dependence on third party suppliers
– Psg Hp's 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.
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. Psg Hp's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study HP: The Computer is Personal Again, Psg Hp's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Weighted SWOT Analysis of HP: The Computer is Personal Again 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: The Computer is Personal Again 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: The Computer is Personal Again 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: The Computer is Personal Again 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: The Computer is Personal Again 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 Psg Hp's needs to make to build a sustainable competitive advantage.