1. Hewlett Packard
“Innovate at every touch-point of information—from creation to capture, from
management to delivery, and all the collaboration that goes on in between”
By
Abdullah AlSalem

2. 2
Background
• Founded in 1939 in Palo Alto, CA.
• In 1966, HP labs founded-development of HP’s
first computer.
• In 1972 HP came up with the world’s first
scientific pocket calculator (HP 35).
• Operates in 170 countries.
• Has around 304,000 employees.
• Revenue for the four quarters ended Oct. 31,
2010 was $126 billion.

3. 3
Background
• 1st
in LaserJet and inkjet printers.
• 1st
in notebook and desktop PCs.
• 1st
in blade servers.
• 411 patents granted to HP labs researchers in
2009.
• 93 technologies transferred from HP labs to
the business in 2009.

4. 4
Major Events
• 2002: Merging with Compaq.
• 2008: Acquisition of Electronic Data Systems.
• 2010: Acquisition of Palm Inc.
• 2010: Acquisition of 3Com.
• 2010: Acquisition of 3PAR.

5. 5
Products

6. 6
Products
• Personal computing devices.
• Enterprise servers.
• Storage devices.
• Printing and imaging.

7. 7
Revenue of three months ended Jan 31, 2011
$32.3 billion

8. 8
Fiscal year ended Oct. 31, 2009

9. 9
External Analysis
External Opportunities Weight Code Weighted Score
Increase in sales of tablet PC 0.20 3 0.6
Entry into the smart phone market 0.15 2 0.3
New technologies (Cloud computing) 0.10 2 0.2
Growth in digital printing 0.10 4 0.4
External Threats Weight Code Weighted Score
Intense competition 0.20 3 0.6
Global economic recession 0.15 3 0.45
Dependence on third party supplier 0.10 4 0.4
Cartridges manufacturers or re-fillers 0.05 4 0.2
1.00 3.15

10. 10
Internal Analysis
Strengths Weight Code Weighted Score
R & D 0.15 4 0.60
Growth rate 0.15 4 0.60
Market position 0.15 3 0.45
Significant brand recognition 0.10 3 0.30
Weaknesses Weight Code Weighted Score
Lack of significant software product 0.15 1 0.15
Lack of management consulting services 0.15 2 0.30
WebOS 0.10 2 0.20
Culture 0.05 2 0.10
1.00 2.70

11. 11
SPACE Analysis
Financial Strength (FS) Competitive Advantage (CA)
Return on investment 5 Market share 1
Leverage 4 Product quality 2
Working capital 4 Product lifecycle 2
Cash flow 5 Customer loyalty 2
Liquidity 5 Cap. Utilize 2
Ease of exit 2 Tech know-how 2
Risk of business 3 Supply & distribution 3
Average Score = 4.0 Average Score = 2.0
Environmental Stability (ES) Industry Strength (IS)
Technological change 2 Growth potential 5
Rate of inflation 4 Profit potential 5
Demand variability 4 Financial stability 5
Price of comp. prods. 2 Technology 5
Entry barriers 2 Ease of entry 2
Competitive pressures 1 Capital intensity 5
Price sensitivity 2 Productivity 5
Average Score = 2.4 Average Score = 4.6
FS - ES = 1.6 IS - CA = 2.6

12. 12
SPACE Analysis
Conservative Aggressive
CompetitiveDefensive
ISCA
FS
ES

13. Thank you