suppliers
The power of suppliers is high within the market place. This is due to there being few large suppliers that a company would be able to rely on. Such as Intel for processors in their laptops and netbooks. (Intel 2011) There is also a difficulty for companies to manufacture the parts required themselves, therefore Hewlett Packard and others in the industry would be reliant upon its suppliers.
1.2.5 Competitive Rivalry
Competitive rivals account for all the companies which offer similar products. In the mobile technology industry, there are several competitors relating to Hewlett Packard. These include; Apple Inc, Nokia, Google, HTC, Blackberry and Sony. With all these companies having established brands. (BBC 2010)
1.3 Opportunities and Threats
1.3.1 Opportunities
The main opportunity for Hewlett Packard is for the company to grow, with it being predicted that the mobile phone market alone is expected to increase by around ￡2,500 million by 2015 (Mintel 2011) They also have to opportunity to move into the emerging market created by Tablets, With HP already having a product out, the HP TouchPad, to compete with the Apple iPad. There is also an opportunity from the patents gained from the purchase of Palm. These allow for new technologies to be explored.
1.3.2 Threats
The threats that face Hewlett Packard, can be seen to be competitive rivalry (Hewlett Packard 2010). There is aggressive competition within the industry with a variety of products competing with those of HP. The saturation within the market could harm future revenues. There are also security risks (Hewlett Packard) which could damage reputation, a recent example of this is Sony (Telegraph 2011)
Question 2
2. Internal Analysis 内部分析
To analyse Hewlett Packard internally the author has chosen to use the following, financial analysis as well as strategic capabilities and competitive advantage.
2.1 Financial Analysis
In 2010 Hewlett Packard had the largest revenues against those of its competitors reporting figures of $126,033 million. These compare to Apple who reported $65,225 million, and Dell who reported $61,494 million. The revenue can be seen to have risen from 2009 when it was reported to be $114,552. Dell and Apple can also be seen to have risen from the previous year, with Apple overtaking Dell and becoming a bigger competitor. Despite this marked improvement for Apple, HP still have almost double the revenue. This would suggest that the market for mobile technology is growing, which is further supported by the projections for growth by Mintel (2011). HP have seen the biggest growth in their revenue come from the non-U.S. market. This has seen a rise of $54,149 since the year 2000. Although growth has occurred in the U.S. market, it has not been quite so high. Hewlett Packard have seen their dividend per share remain at a constant level over the past 5 years, with it declining slightly from $0.30 to $0.29 in 2010. In comparison to Apple and Dell neither has issued a dividend over the 5 year period.
A decrease in net cash can be seen to of occurred over the last 2 years, although this could suggest poor performance it can be seen from the cash flow statement that the company has paid back $1731 milli
