Expand services and enterprise solutions divisions. HP provides various services (cloud, security and infrastructure) and enterprise solutions (servers, networking and storage), which are the most profitable HP’s businesses at the moment. The company should focus on growing these divisions as they promise better growth opportunities and higher profit margins.
Increasing demand of cloud based services. The cloud computing market is expected to grow by an average of 22% each year from 2011 to 2020. By 2020, the market is expected to reach $240 billion value. Currently, HP is offering many services related with cloud computing and is well positioned to benefit from the growing market.
Acquisition of more technology related patents. R&D is expensive to engage in and the best alternative to that is to acquire patents from other companies in the market. HP has a lot of free cash that could be used to acquire companies holding the necessary technology patents. With strengthened patent portfolio, HP would be able to compete with the rival firms in the table market.