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HPE SWOT & PESTLE Analysis

ID : 52552553| Jul 2019| 15 pages

COMPANY PROFILE -HPE

Business Sector :Information Technology

Operating Geography :California, North America, Global

About HPE :

Hewlett Packard Enterprise was founded in 2015 from the splitting of parent HP Inc. which was founded in 1939 by William Hewlett and David Packard. HP Inc. retained the old HP's personal computer and printing business, while its spin-off HPE, is a business-focused organization with four divisions: Hybrid IT which offers a wide suite of services-led and software-enabled infrastructure and solutions, HPE’s intelligent Edge overseeing enterprise networking and security solutions, Corporate Investments includes Hewlett Packard Labs and certain business incubation projects and financial services. It is an American origin multinational enterprise information technology company headquartered in Palo Alto, California.
HPE provides technology and solutions to its customers with the motto of “Technology innovation that fosters business transformation”. It is really one of the most innovative and versatile fortune 500 organizations ranked at 107 positions in 2018. With a workforce of around 60000 people as of early 2019, focus on innovation, intellectual property portfolio and global research and development capabilities HPE is making significant breakthroughs constantly. HPE’s USP or unique selling point lies in untiringly endeavoring to introduce new products and services, exploring technology and market trends, and providing industry with deep insight and best practices.

HPE Revenue :


US$ 30.85 billion – FY ending 31st Oct 2018 (y-o-y growth 7%)
US$ 28.9 billion – FY ending 31st Oct 2017

Competitive Analysis of HPE

SWOT
PESTLE
The SWOT analysis of HPE is presented below:
Strengths
Weaknesses
1. Strong Global Presence, brand name and recognition
2. Diversified product portfolio and customized solutions
3. Strong distribution network and partner ecosystem
4. Multi-year technology and innovation footprint
5. Ground-breaking partnerships to accelerate innovation with hybrid cloud solutions
1. Organization structural issues
2. Loyalty among suppliers is low
Opportunities
Threats
1. New customers from online channel
2. Expanding business in more emerging markets
3. Rising adoption of new technologies
4. Fuelling future growth with HP labs
1. US China Trade war can seriously hamper business
2.Increasing Competition
3. Counterfeit and low quality product
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of HPE

 

Strength

1. Strong Global Presence, brand name and recognition: The origin of HP is dated back to more than 80 years ago which meant it inherited a legacy and a strong establishment of global presence and brand name. It is due to this legacy people do recognize the brand and trust on HPE products. HPE serves 80 countries across the globe in 30 languages with 25k people in its workforce. HPE focuses on enterprise hardware and the cloud and it came into existence when the hardware and printer division was made a separate entity from mothership and is now known as HP Corporation. HPE needs no introduction as it has established itself as a pioneer in the industry with all credibility and this gets added as an advantage to both the divisions formed in 2015. HPE is a major player across the globe when it comes to hybrid infrastructure, empowering data driven organizations, protecting digital enterprises and enhancing workplace productivity with the help of tools and software. HPE follows Global delivery model and its centres are located in Austria, US, UK, Australia, Egypt, Argentina etc. to name a few countries. Approximately 67% of total revenue is generated in the US alone. The four major segments in the business are Hybrid IT, Intelligent Edge, Financial Services and Corporate Investments. Hybrid Cloud is one of the Company’s key focus areas.

2. Diversified product portfolio and customized solutions: All the offerings HPE makes helps it to serve its clients across the globe in a most efficient and comprehensive manner. HPE combines their software-defined infrastructure and services capabilities to churn out one of the strongest portfolios of enterprise solutions in the IT industry. This American technology provider’s niche ability to offer a holistic IT strategy-from the cloud to the data center to the intelligent edge, through high-quality products and high-value added consulting and support services all under one roof sets them apart and gives them a great competitive advantage.
HPE follows a policy like IBM to shed off the low profitable business units because of which it cut loose EMC, x86 server businesses and sold them off to Lenovo. But even after letting loose less profitable ventures it has a very strong and diversified portfolio when it comes to the areas HPE is focused on - enterprise networking and security solutions, services-led and software-enabled infrastructure and solutions, financial services and corporate investments. It is into 3Com, 3Par, and Aruba assets which come under its cloud services and infrastructure, its own initiative known as The Machine, a next-generation server concept having a new architecture that focuses on in-memory computing and faster throughput. It continually introduces new products and services, explores technology and market trends, and provides industry insight and best practices which help its clients as well as HPE and provide it a competitive advantage. It almost covers all domains in service domain by providing consulting, IT consumption, operational support, education and training services and financial services. The products are offered under the range of server system, data storage, networking, software, industries and segments, applications.
Inovative financial solutions and IT consumption models facilitating HPE’s delivery of products and services to clients have been developed. Alongside flexible investment solutions and expertise which help customers and other partners to create unique technology deployments to meet specific business needs have also been developed by the American IT maverick.

3. Strong distribution network and partner ecosystem: Being an established organization provides HPE an edge or competency of having a detailed and well-functioning distribution network. Owing to the fact that the Company has been in operation for decades, this establishment of distribution network has been achieved by experience, expertise and leveraging technology. In 2018 it even held an annual distributor conference which is one of its own kind so as to maintain a healthy relationship with distributors and gain cognizance of the issues, suggestions and problems related to distribution network right at the ground level. The objective is to strengthen their presence and drive growth with their partner community. It’s Hybrid IT and position as market leader for Edge Servers also helps in leveraging the advantage of managing its distribution network. HPE Authorized Resellers, HPE Authorized Service Partners and Partner to Partner Association within a Partner Company are the models followed in its distribution network. Multi country, Multivendor and Multi language inclusive innovative technological solutions are also delivered to its customers depending on the complex requirements. With the largest go to market capabilities in the industry which includes a large ecosystem of channel partners, enables HPE to deliver multiple product offerings to its customers located anywhere on the planet.

The remaining section of “Strength” is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

SWOT & PESTLE (combined)
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Check out analysis of other relevant companies

TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
References used in HPE Analysis Report

1. HPE Company Information - https://www.hpe.com/us/en/about.html#companyinformation

2. A year after separation, HP and HP Enterprise are still trying to shed rust - https://www.pcworld.com/article/3145634/a-year-after-separation-hp-and-hpe-are-still-trying-to-shed-rust.html

3. A look back on HPE's first ever global Distribution Partner Conference - https://www.hpe.com/us/en/newsroom/blog-post/2018/10/a-look-back-on-hpes-first-ever-global-distribution-partner-conference.html

4. Problems with the organizational structure of Hewlett Packard - https://blogs.ubc.ca/junnanxu/2010/11/24/problems-with-the-organizational-structure-of-hewlett-packard/

5. Hewlett Packard Enterprise builds its e-commerce revenue - https://www.digitalcommerce360.com/2017/05/17/hewlett-packard-enterprise-builds-its-e-commerce-revenue/

Copyrights and Disclaimer

HPE SWOT and PESTLE analysis has been conducted by Shraddha Shukla and reviewed by senior analysts from Barakaat Consulting.

Copyright of HPE SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

HPE SWOT & PESTLE Analysis
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