Elaborative SWOT Analysis Of HubSpot – An American Developer & Marketer Of Software Products

Updated on: Dec 11, 2021

In our previous interesting blog, we had discussed the elaborated SWOT analysis of one of the worlds largest publicly traded companies, SAP. In this blog, we will concentrate on the SWOT Analysis of HubSpot in detail. 

HubSpot is a cloud-based CRM designed to coordinate your sales and marketing teams, drive sales support, improve ROI, optimize your inbound marketing strategy, and generate more qualified leads.

Another aspect that has made HubSpot a giant today is marketing. Marketing changes as the world goes online,  and when you want to stay up to date – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.

Want to see how HubSpot has succeeded in the software industry? In this blog, you will learn about the SWOT analysis of HubSpot. Before we get started, learn more about HubSpot‘s company, how it was established, its products, financial position, and its competitors.

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About HubSpot

SWOT Analysis of HubSpot - Image of Founder & Co-Founder of HubSpot
(Image of Co-Founder & Founder of HubSpot, Source: HubSpot)

HubSpot is a US-based developer and seller of inbound marketing, sales, and customer service software products. Hubspot was founded in 2006 by Brian Halligan and Dharmesh Shah. 

On August 25, 2014, it requested a listing on the New York Stock Exchange with the ticker  HUBS. In July 2017, HubSpot acquired Kemvi, a company that uses artificial intelligence and machine learning to support sales teams. The company reported revenue of $1 billion in 2021. 

In February 2021, Axios announced that HubSpot would acquire The Hustle, a newsletter and email newsletter aimed at small business owners and entrepreneurs. In September 2021, HubSpot announced Yamini Rangan as its new CEO and Brian Halligan stepped down as the company’s chairman.

HubSpot products and services are focused on providing tools for customer relationship management, social media marketing, content management, lead generation, web analytics, search engine optimization, live chat, and customer support.

Bonus Tip: You can learn all these tools and skills from IIDE 13+ short term courses in digital marketing taught by digital industry experts. Learning these skills will not only upgrade your knowledge about digital marketing but will also provide you with immense career growth and future opportunities.


Quick Stats on HubSpot
Founder Brian Halligan, Dharmesh Shah
Year Founded 2006
Origin Cambridge Massachusetts, U.S.
No. of Employees 3,387+
Company Type Public
Market Cap $ 34.175 Billion (2021)
Annual Revenue US $ 883.026 Million (2020)
Net Income/ Profit US $ 85.031 Million (2020)


SWOT Analysis of HubSpot - HubSpot Suit
(HubSpot Suit, Source: The Cloud People)

Products of HubSpot

HubSpot has been in the Software industry for more than a decade and deals in:

  • Free Tools
  • Marketing Hub
  • Sales Hub
  • Service Hub
  • CMS Hub
  • Operations Hub

Competitors of HubSpot

The top 5 competitors of Hubspot are:

  • Agile CRM
  • Bitrix24
  • Close
  • Insightly
  • Pipedrive

As now we have a better understanding of HubSpot, let’s look into the SWOT Analysis of HubSpot.

SWOT Analysis of HubSpot

A SWOT analysis identifies a company’s strengths, weaknesses, opportunities, and threats. A proven and true management paradigm that allows HubSpot to compare its business and performance with competitors and the industry as a whole.

SWOT Analysis of HubSpot - SWOT Infographics of HubSpot

So let us go ahead and first have a glance at the strengths of HubSpot from the SWOT analysis of HubSpot.

Strengths of HubSpot

As one of the leading companies in the industry, HubSpot, Inc. It has numerous strengths that make it stand out in the market. These strengths not only help protect your market share in existing markets but also help you penetrate new markets.

  • Strong Free Cash Flow: There is a strong free cash flow that puts resources into the hands of the company to expand into new projects. 
  • Good ROI: It is relatively successful in new projects and provides a high return on capital expenditures through the creation of new revenue streams.
  • Strong Brand Portfolio: Over the years HubSpot has invested in building a strong brand portfolio. This brand portfolio can be very useful if an organization wants to expand into new product categories. 
  • Outstanding Performance in New Markets: HubSpot has accumulated experience to enter new markets and achieve success. The expansion has helped organizations create new revenue streams and diversify business cycle risks in the markets in which they operate. 
  • Strong Dealer Community: This not only allows dealers to promote company products but also creates a culture between distributors and dealers. We also invest in training our sales team to explain to our customers how to get the most out of our products.
  • Highly Skilled Labor: Highly skilled workforce through successful education and training programs. By investing enormous resources in the training and development of HubSpot employees, they not only create highly qualified employees but also motivate them to achieve more. 
  • Mergers and Acquisitions: A track record of successfully integrating additional companies through mergers and acquisitions. Over the past few years, he has successfully integrated several technology companies to optimize operations and establish a stable supply chain.

Weaknesses of HubSpot

Strategy is all about choices and weaknesses are areas where companies can improve through SWOT analysis and leverage their competitive advantage and strategic positioning.

  • More Investment is Needed in New Technologies: Given the scale of the expansion and the multiple geographic regions in which the company will expand, HubSpot overall integrating processes requires more money to be invested in technology. Current investments in technology are not aligned with the company’s vision. 
  • Financial Planning is Not Being Performed Properly and Efficiently: The liquid asset ratio and liquidity ratio indicate that a company can use its cash more efficiently than it currently is. 
  • High Labour Outflow: Higher dropout rates compared to other organizations in the industry, HubSpot, and have to spend significantly more on employee training and development than their competitors. 
  • Not Very Successful in Integrating Companies with Different Work Cultures: As mentioned earlier, HubSpot is successful at integrating small companies. It has its share of failures to merge firms that have different work cultures.
  • High Competition: The daily stock is high compared to its competitors, so the company has to raise more capital to invest in the channel. This could affect the long-term growth of HubSpot.
  • Product Marketing: Although the product is successful in terms of sales, its positioning and unique selling proposition are not clearly defined, making it vulnerable to attack from competitors in this sector.

Opportunities for HubSpot

Opportunities are potential areas for companies to focus on to improve results, increase sales, and ultimately profit.

  • New Environmental Policy: New opportunities will create a level playing field for everyone in the industry. This is a great opportunity for HubSpot, Inc. to realize the benefits of new technologies and gain market share in new product categories.
  • New Taxation Policy: New tax policies can have a significant impact on the way HubSpot does business and open up new opportunities for them to increase its profitability.
  • Open New Markets Through Government Agreements: New technology standards and government free trade agreements provided to HubSpot opens up opportunities for HubSpot to enter newly developed markets. 
  • New Customers Through Online Channels: The company has invested huge amounts of money in its online platform over the past few years. This investment opened up a new sales channel for HubSpot. Over the next few years, companies will be able to seize this opportunity by better understanding their customers and meeting their needs through big data analytics.
  • Economic Recovery: Economic recovery and rising consumer spending after years of recession and slow industrial growth are opportunities for HubSpot to attract new customers and increase market share.

Threats to HubSpot

Threats are environmental factors that can harm a company’s development. Here are some of HubSpot’s threats:

  • Legal Actions: The Company may face legal action in other markets given the continuing fluctuations in different laws and product standards in those markets.
  • Fierce Competition: Strong profitability has increased the number of players in the industry over the past two years, putting downward pressure on overall revenue as well as profitability.
  • Liability Laws: Vary from country to country HubSpot may face a variety of liability claims as a result of these market policy changes. 
  • Quantitative Increases in Commodities: This could jeopardize HubSpot’s profitability. A shortage of skilled labour in certain global markets threatens HubSpot’s continued earnings growth in the market.
  • Operates Globally: Because the company operates in many countries, it is exposed to currency fluctuations, especially given the unstable political environment in many markets around the world. This may face some challenges in the market and may result in some losses as well.

This ends our outstanding SWOT analysis of HubSpot. Let us conclude our learning below.

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To Conclude

HubSpot is a well-known software company with significant global positions. During the SWOT analysis of Hubspot, we found that the company is highly dependent and enjoys strong brand awareness and trust from its customers. It has a solid logistic base and covers all markets it serves, but suffers from more active research and development from an increasing number of manufacturers and competitors in the same space.

But being such a huge brand across multiple countries, HubSpot should continue to innovate and develop more products and launch them in the market with the best possible marketing strategies.

Especially digital marketing which is vital in today’s growing and expanding world, to get better results and to remain competitive in the market. If you don’t have any idea of what digital marketing is or want to learn more about it and upgrade yourself, here is IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.

We hope this blog on the SWOT analysis of HubSpot has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.

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Author's Note:

My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India.

Practical assignments, case studies & simulations helped the students from this course present this analysis.

Building on this practical approach, we are now introducing a new dimension for our online digital marketing course learners - the Campus Immersion Experience.

If you found this case study helpful, please feel free to leave a comment below.

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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