Stepwise SWOT Analysis of HP

Updated on: Sep 9, 2021
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HP is the 2nd largest personal computer vendor based on unit sales. It has a wide range of products in the market for its customers. It dominates the printer market with 40.2% of the market share.

Over the years it has implemented many strategies some of which became its strengths and due to some weak decisions has created some weaknesses.

In this blog, we will learn the SWOT Analysis of HP and how it has used different attributes in its favor but before we look at its SWOT analysis let us know about HP as a company.

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About HP
brand logo of HP-SWOT Analysis of HP | IIDE

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

HP laptops-SWOT Analysis of HP | IIDE

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.



  • Product innovation

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.

  • Brand Equity

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.

  • Large Workforce

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.

  • Increasing Revenue

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.



  • Decreasing demand

There is a decline in demand for laptops and PC due to the increase in demand for mobiles and tabs.

  • Operational cost

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

  • New technologies

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.

  • Economic uptick

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.



  • Competitors

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.

  • Currency fluctuations

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.

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On the study of the SWOT analysis of HP, we can see that the company has many strengths like innovation in products, Brand equity, a large workforce, and the increase in revenue in the previous year.

Although HP is facing several challenges due to e, reduced customer demand, and growing challenges before its printer business, the company has maintained its performance level through an increased focus on innovation. 

They there are several opportunities for HP in the market some of them which were discussed are the new technologies, MSP, and the economic uptick.

The threats that it faces in the market are the currency fluctuations in different countries, rising costs, and increasing competitors.

Wasn’t it interesting to know the SWOT analysis of HP? Learn how to market your brand online using digital marketing check our website for more information.

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Aditya Shastri

Lead Trainer & Head of Learning & Development at IIDE

Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs......[Read full bio]


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