HPE SWOT and PESTLE Analysis

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.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

1. Global Diversity and Inclusion: This can be a core competency of an organization as human resources are tangible assets accompanied by intangible assets in the form of knowledge and skills and these play a major role in developing competency. In today’s time companies which includes all and helps them to develop themselves gain the most. To drive new business, innovate more, sustainability and for long term growth, organizations are including everyone and performance appraisals, promotions and rewards are based on skills and talent than origin. It gives equal opportunities for all and a healthy and encouraging work environment which indeed leads to successful organization building. The practices, culture and work ethics all are counted in inclusion. Building encouraging environment helps companies to succeed. The recent events proved the importance and positive effects of diversity inclusion.

2. Building smart cities delighting governments and citizens in a twin win: Smart cities are a project that is being widely adopted across cities and nations. In partnership with the Government of Dubai, HPE has been now able to transform the lives of millions of people by transforming their city into the smartest city. Watching this successful project of Dubai Government with HPE, other cities in the region are also getting interested in such projects which by the help of smart sensors integrated with analytics and real time dashboards help citizens, businesses and visitors with the best experience across dozens of cities. In collaboration with UAE ‘s leading Telecommunication provider du Telecom, HPE is providing expertise and big data technology to form the basic foundation of Smart Dubai Platform for building a future city with advanced application and services. HPE is the system integrator, providing services and technologies for its servers, storage and software. To create the best experiences for people, visitor’s ad businesses, Dubai is leveraging data which is analyzed and transformed into value by HPE. HPE is expected to provide technology and expertise to all cities planning to accelerate this smart city initiative so as to create technologically advanced, economically sustainable and citizen centric cities and Dubai is the leading city leaping rapidly in this direction in collaboration with HPE. This includes $8 billion future investment in future cities, 1000 smart government services and 250K smart meters, 1000 e-services, creating 2.5 gigabyte of data every year.

Technological

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Legal

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Environmental

1. Waste management in Technology sector: Acting responsibly HPE provides product take-back programs in various countries worldwide and hence helps in maintaining the E-waste that is generated. The e waste generated in 2018 was 49.8 million tons, with an annual 4-5 percent growth. Many technology companies are helping governments to make recycling policies from scratch so as to save our planet from the hazardous effects E- waste will have in the long term. Development of modern waste management facility is a major initiative taken by HPE across globe. With the help of a group of recycling experts, financiers, regulators and academics HPE is sure to bring about a change in the waste generation and management pattern and set example for others also. Strict government rules and regulations also encourage the technology based organizations to come up with new and innovative E-waste management approaches. The informal management of waste is inefficient and it accounts for 95% of total players.