Hewlett Packard-Alsalem

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”

ByAbdullah AlSalem

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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.

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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.

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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.

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Products

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Products

• Personal computing devices.

• Enterprise servers.

• Storage devices.

• Printing and imaging.

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Revenue of three months ended Jan 31, 2011

$32.3 billion

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Fiscal year ended Oct. 31, 2009

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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

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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

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SPACE AnalysisFinancial Strength (FS) Competitive Advantage (CA)Return on investment 5 Market share 1Leverage 4 Product quality 2Working capital 4 Product lifecycle 2Cash flow 5 Customer loyalty 2Liquidity 5 Cap. Utilize 2Ease of exit 2 Tech know-how 2Risk 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 5Rate of inflation 4 Profit potential 5Demand variability 4 Financial stability 5Price of comp. prods. 2 Technology 5Entry barriers 2 Ease of entry 2Competitive pressures 1 Capital intensity 5Price sensitivity 2 Productivity 5

Average Score = 2.4 Average Score = 4.6FS - ES = 1.6 IS - CA = 2.6

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SPACE Analysis

Conservative Aggressive

CompetitiveDefensive

ISCA

FS

ES

Thank you