About HP

HP was founded in the year 1939 by Bill Hewlett and David Packard. It is headquartered in Palo Alto, California. It is an American IT company that specializes in laptops, printers,3D printing solutions, etc. It is one of the first pc brands to bring different innovations to the pc market.
Here, we will carry out the SWOT analysis of HP to gather vital information on its strengths in current markets, weaknesses it suffers, opportunities in the future, and threats from various companies and social trends.
Now that we know about HP as a company let us see the SWOT analysis of HP.
SWOT Analysis of HP

SWOT represents the Strengths, Weaknesses, Opportunities, and Threats, and so a SWOT Analysis is a technique for evaluating these four aspects of your business.
It is used to make the most of what you’ve got, to your organization’s best advantage and you can reduce the chances of failure, by understanding what you’re lacking, and eliminating risks that would otherwise catch you unaware.
Now that we have known how SWOT analysis works,
Let us start by looking at the strengths of HP.
1. STRENGTHS
HP has been providing its customers with the best productivity and performance of its products. This was only possible with the help of proper research and development. In 2018, it spends around 1.4 billion on R&D.
By providing its customers with the best quality of products, and customer services and working on its brand image it has grown trust among its customers. It is among the most trusted PC and Laptop brands in the world.
Hp Boasts a large workforce which adds to around 35,000 workers. This enables HP to perform efficiently in various areas such as customer service, HR department, etc.
HP has seen an increase in revenue of 6.91% in the previous year. Its revenue for the year 2020 was $56.639 Billion.
Let us move on and look at the weaknesses of HP.
2. WEAKNESS
There is a decline in demand for laptops and PC due to the increase in demand for mobiles and tabs.
The operation cost of the company kept on increasing every year and decreased recently in 2020 which was $ 53.177 billion.
- Limited success outside core business
It has faced a lack of success in the business in which it operates other than its core business. Now let us see the Opportunities for HP.
3. Opportunities
Technological advancement provides an opportunity for the company to practice differentiated pricing strategies in the market. It helps the company to maintain its loyal customer base.
- Managed print services (MSP) Market
It is said that the MSP market will grow to $94.9 billion by 2023. This can be a big opportunity for HP to grow in the market.
With the increase in customer spending on new technology, it can increase the opportunities and customers for HP in the market. Now lastly we shall see the Threats to HP.
4. THREATS
The company is facing tough competition from other players in pricing. With people becoming more price-sensitive, pressure is mounting on HP to provide better features at a minimal cost.
As HP operates in many different countries it can face some problems due to the fluctuation in the currency value.
- The rising cost of raw materials and labor
Due to the rising cost of raw materials and labor, the production cost of the products will increase which will eventually lead to an increase in the price of the product which can affect negatively on company’s sales.