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Hewlett Packard Company Opportunities and Threats Research Paper

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A Strength of Hewlett Packard Corporation

The first strength of Hewlett Packard is the possession of very innovative and affordable products. The company should use the above strength to develop the best online marketing strategies in order to benefit for this opportunity. The company can use this potency to achieve its goals. Several opportunities in this sector support this strength. The first opportunity is the sharp growth in enterprise servers, networking, cloud computing, and data storage. HP’s innovative products are affordable. This situation explains why the company should market its innovative devices using the best online marketing approaches. This approach will attract more customers and fulfill their expectations. Many companies such as Wal-Mart and Tesco Incorporation are planning to use online marketing practices (Macarthy 67).

This opportunity explains why HP can provide networking and cloud computing solutions to these companies. The company should produce and market its superior devices to these customers. Many entrepreneurs and customers are currently using enterprise servers. According to Kourdi (34), the number of online marketers will rise by 60 percent in the next five years. This opportunity can make HP a leading marketer in its business sector. The company should use its online marketing strategy to gather new information about the changing expectations of the customers. This plan will ensure HP sells its innovative products to more consumers. The proposed strategy will succeed because there is a sharp growth in enterprise networking and cloud business. The opportunity will make the marketing strategy successful. HP Incorporation will become a market leader in this sector. The decision to deal with this opportunity will create new options thus making the company a leading marketer. The business will use this opportunity to become the leading provider of different networking and cloud computing solutions.

The Use of Online Marketing Platform for Products and Other Services

It will be appropriate for HP Incorporation to use its large cash flow to produce and market its android devices to every potential customer. Hewlett Packard enjoys being a market leader because of its printing business. HP Incorporation has always increased its income and cash flow from its printing business (Lowitt and Grimsley 4). This position continues to attract more customers. The strength gives HP a competitive edge over its immediate competitors because of its stable cash flow. HP Incorporation can benefit from the current increase in tablet and android markets. The current number of customers for different tablets and android devices is on the rise. HP should use its cash flow to produce quality tablets and android devices for the growing market. Studies indicate that the number of users will increase by 2016 (Pearson 56).

This explains why Hewlett Packard should use it financial strength to produce quality and competitive android devices. The company should embrace the research and development (R&D) practices in order to manufacture quality products. The cash flow from HP’s printing business will also support the best marketing strategy for the products (Neti 6). HP Incorporation should consider the expectations of every consumer in order to produce quality devices and tablets. The potential buyers and users of these products and android devices include teenagers and young adults. The company should explore new markets across the United States in order to compete with some of the leading competitors such as Apple Incorporation, Nokia, Acer, and Toshiba. The company should use its cash flow to widen its market coverage. This approach will attract new customers. Many consumers will admire the company’s new android devices and tablet products. This situation explains why HP Incorporation should use its cash flow to produce the best products in order to realize its business goals.

A Variety of Innovative and Affordable Products

Hewlett Packard can use its strengths to deal with most of the threats affecting its business. Some of the leading threats are the declining market for personal computers (PCs) and the threat from substitute goods. Hewlett Packard should use its innovative products to inform more customers about their effectiveness and superiority. This strategy will deal with the above challenges. HP Incorporation enjoys its innovative and very affordable products. Most of these products include PCs, laptops, tablets, servers, and cloud computing devices. The company should ensure every product is available, affordable, and innovative.

The company should target more markets especially where the number of PC customers is decreasing (Pearson 73). HP Incorporation should inform its customers about the features and benefits of its affordable PCs. The company needs to produce similar devices such as laptops and tablets and promote them successfully. Such products will address the changing needs of the targeted customers. The availability and efficiency of HP’s innovative and quality products will ensure every customer purchases the company’s innovative and quality computers. The practice will deal with the increasing number of substitutes in the market. Some of these substitute products include personal computers and tablets from giant manufacturers. Some of these manufacturers include Acer, Apple, Samsung, Toshiba, Nokia, Dell, and Lenovo.

Most of these companies have a significant market share in the United States. HP’s innovative PCs can compete directly with these substitutes. The decision to market its superior products will attract more customers. The approach will revive the declining PC market in the United States. The products will also address the challenge of substitute goods in the market. HP’s research and development (R&D) strategy helps the company produce quality and competitive devices that can compete in the American market.

Large Cash Flows From Printing Business

Any global economic crisis is capable of affecting the company’s financial strength and business performance. Hewlett Packard stands a chance to overcome this threat. Hewlett Packard can use its financial position and cash flow from its printing business to monitor and forecast its performance throughout the economic crisis. Hewlett Packard can use its large cash flow gained from printing business to solve the current threat arising from global economic crisis. The cash obtained from this printing business can address every overdraft or shortage. The company will use its financial plan to focus on every short-term liquidity consideration.

The company’s cash flow will answer every question that appears to threaten its performance. HP Incorporation will set up a plan to reduce costs throughout the economic crisis. This strategy will support the idea to monitor and forecast its financial performance (Bepari, Rahman, and Mollik 235). This strategy will also ensure the company does not suffer or realize a sudden cash flow shortage. This situation will help the company support its business strategies throughout the period (Laplante 9). Every successful business should always monitor its cash flow in order to overcome every economic crisis. This discussion explains why Hewlett Packard should continue with its business strategy (Preston 46). It should also support its printing business in order to overcome any unforeseeable economic crisis. This practice will make the company a leading marketer of PCs and android devices in the American market. The company’s financial position will support its business strategy throughout the recession period.

Works Cited

Bepari, Khokan, Sheikh Rahman and Taher Mollik. “Value relevance of earnings and cash flows during the global financial crisis.” Review of Accounting and Finance 12.3 (2013): 226-251. Print.

Kourdi, Jeremy. Business Strategy: A Guide to Effective Decision-making. New York: Economist Books, 2013. Print.

Laplante, Mary 2005, . Web.

Lowitt, Eric and Jim Grimsley. “Hewlett-Packard: Sustainability as a Competitive Advantage.” Institute for Higher Performance 1.1 (2009): 1-15. Globalcitizenship. Web.

Macarthy, Andrew. 500 Social Media Marketing Tips: Essential Advice, Hints and Strategy for Business: Facebook, Twitter, Pinterest, Google+, YouTube, Instagram, LinkedIn, and More! New York: CreateSpace Independent Publishing Platform, 2013. Print.

Neti, Sisira. “Social Media and Its Role in Marketing.” International Journal of Enterprise Computing and Business Systems 1.2 (2011): 1-16. Print.

Pearson, David. The 20 Ps of Marketing: A Complete Guide to Marketing Strategy. New York: Kogan Page, 2013. Print.

Preston, Lynelle. “Sustainability at Hewlett-Packard: From Theory to Practice.” California Management Review 43.3 (2001): 26-37. Print.

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