Вы находитесь на странице: 1из 8

Introduction: In 1934 After graduating as electrical engineers from Stanford University, Bill Hewlett and Dave Packard become

friends during a two-week camping trip. 1938 Bill and Dave start casual work in the rented garage. Due to negative feedback of bills study, Bill and Dave invented his first product oscillator and named it HP Model 200A. Hewlett-Packard Company, the Company was established in a one-car garage area in Palo Alto by Bill Hewlett and Dave Packard, and is now one of the worlds biggest IT companies, operating in nearly every country. HP specializes in developing and production processing, information storage space, networking h a r d w a r e , d e s i gn i n g s o f t w a r e a n d d e l i v e r i n g s e r v i c e s . Hewlett-Packard Mission Statement: "To provide products, services and solutions of the highest quality and deliver more value to our customers that earns their respect and loyalty." Hewlett-Packard Vision Statement: "To view change in the market as an opportunity to grow; to use our profits and our ability to develop and produce innovative products, services and solutions that satisfy emerging customer needs."

Strategy: At HP, we believe diversity is a key driver of our success. Putting all our differences to work across the world is a continuous journey fueled by personal leadership from everyone in our company. Our aspiration is that the behaviors and actions that support diversity and inclusion will come from the conviction of every HP employee making diversity and inclusion a conscious part. BUSINESS STRATEGIES HP focuses on simplifying technology experiences for all of its customers from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure.


SWOT ANALYSIS ON Hewlett-Packard Strengths

Leading provider of personal computers and imaging and printing Multi-vendor customer services, including infrastructure technology and business process outsourcing, technology support and maintenance, application development and support services and consulting and integration services Organized into 7 business sections with strong position in each Strong financial condition

Weaknesses * Financial condition leans very heavily on the state of our economy not just in the US but worldwide * Lack of in-house management consulting division * R&D department has significantly less investments compared to historical spending * Pay cuts has brought low morale to employees * We depend on third-party suppliers, and our revenue and gross margin could suffer if we fail to manage suppliers properly[*]no vision and mission statement Opportunities * Emerging markets, particularly BRIC countries * continued growth in the traditional enterprise space whilst also opening up new vistas by combining consumer reach with the skills and technology to manage and manipulate an ever-increasing flow of data * Restructuring of internal IT structure

* Expanded Digital Printing Portfolio Threats * Major competition in PC branch from other companies * Increasing competition on imaging and printing * Slowdown in economic conditions in US, Europ * Foreign currency exchange rate changes Hewlett-Packard Company (HP), incorporated in 1947, is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the Government, health and education sectors. Its operations are organized into seven segments: the Personal Systems Group (PSG), Services, the Imaging and Printing Group (IPG), Enterprise Servers, Storage and Networking (ESSN), HP Software, HP Financial Services (HPFS) and Corporate Investments. The Companys offerings include personal computing and other access devices; multi-vendor customer services, including infrastructure technology and business process outsourcing, technology support and maintenance, application development and support services and consulting and integration services, and imaging and printing-related products and services. It also provides enterprise information technology infrastructure, including enterprise storage and server technology, networking products and solutions, information technology (IT) management software, information management solutions and security intelligence/risk management solutions. As of October 31, 2011, HP owned an approximately 99% equity interest in Autonomy Corporation plc. In December 2011, the Company acquired Hiflex Software GmbH. Personal Systems Group PSG provides commercial personal computers (PCs), consumer PCs, workstations, calculators and other related accessories, software and services for the commercial and consumer markets. The Company groups commercial notebooks, commercial desktops and workstations into commercial clients and consumer notebooks and consumer desktops into consumer clients. Commercial PCs include the HP ProBook and the HP EliteBook lines of notebooks and the Compaq Pro, Compaq Elite, HP

Pro and HP Elite lines of business desktops, as well as the TouchSmart and Omni PCs, HP Mini-Note PCs, retail POS systems, HP Thin Clients and HP Slate Tablet PCs. Consumer PCs include the HP and Compaq series of multi-media consumer notebooks, desktops and mini notebooks, including the TouchSmart line of touchenabled all-in-one notebooks and desktops. PSG provides workstations that run on both Windows and Linux-based operating systems. Enterprise Servers, Storage and Networking The Companys Business Critical Systems delivers Converged Infrastructure with a portfolio of HP Integrity servers based on the Intel Itanium processor that run the HP-UX and OpenVMS operating systems, as well as HP Integrity NonStop solutions. Business Critical Systems also offers HP's scale-up x86 ProLiant servers for scalability of systems. In addition, HP continues to support the HP9000 servers and HP AlphaServers by offering customers. The Companys storage offerings include storage platforms for high-end, mid-range and small business environments. Its flagship product is the HP 3PAR Utility Storage Platform, which is designed for virtualization, cloud and IT-as-a-service. The Storage business has a range of products, including storage area networks, network attached storage, storage management software and virtualization technologies, StoreOnce data deduplication solutions, tape drives and tape libraries. Its switch, router, wireless local area network (LAN) and TippingPoint network security products deliver solutions for the data center, campus and branch networks. Its networking solutions are based on HP's FlexNetwork architecture. HP Software HP Software provides enterprise IT management software, information management solutions and security intelligence/risk management solutions. Solutions are delivered in the form of software licenses or as software-as-a-service. HP Software solutions enables IT organizations to manage infrastructure, operations, application life cycles, application quality and security, IT services, business processes, and structured and unstructured data. HP Financial Services HPFS supports HP's global product and service solutions, providing a range of financial life cycle management services. HPFS enables its worldwide customers to acquire IT solutions, including hardware, software and services. The Company offers

leasing, financing, utility programs and asset recovery services, as well as financial asset management services for global and enterprise customers. HPFS also provides an array of specialized financial services to SMBs and educational and Governmental entities HPs Micro Environment: Porters Five Forces Rivalry Rivalry is considered to be the strongest and most important force in Porters model. It represents the presence and number of firms competing for each others economic profits. The level of rivalry within HPs environment can be described as high. This is mainly due to the presence of several competing companies of similar sizes. Moreover, rivalry level increases because of product and service differentiation inadequacy. Entrants The threat on entrants is highly dependent on the presence of factors known as barriers of entry. Basically, barriers to entry could increase or decrease the chances of new businesses offering products that could rival those produced by existing companies. Naturally, if the barriers are high, the threat on entrants will be low due to risks of decreased market share potential. There are several examples of barriers to entry. These include government regulations, trade restriction and inaccessibility of major distribution channels. For HP, the entrant factor can be considered as low due to a number of reasons. Buyers This aspect of Porters five forces pertains to the power of the buyers over the manufacturer or the company. In the case of HP, the buyer power is fair. This assessment is based on the nature of buyer power sources surrounding the company. For instance, the buyer power for HP can be low since product demand is high and buyer concentration is low. Suppliers Similar to buyer power, the power of the suppliers with the company is fair. This is because supplier concentration for electronic parts and components is low. HP

can deal with other suppliers for its production. Considering that HP is a major company, other suppliers will be very willing to supply goods to a large company. Substitutes As mentioned, the computer and printer industry is very competitive; HP is operating in a business environment where several major companies are producing and offering similar products or services. In addition, the target markets of these companies are similar as well. The consumers then have several product options to choose from, making the level of substitutes high for HP. Company: SWOT Strengths

Hewlett-Packard is a strong and well-established brand name within the computer and printer industry. This strength is particularly useful in market positioning, gaining new buyers as well as increasing profit margins. The company holds the majority of the computer and printer market as compared to other competitors. By means of this large market coverage, the company can continuously gain profit as well as acquire the capital to support its project plans and business strategies. HP has an access to major distribution channels which allows it to market its products in the most effective way. The company has the resources to maintain a large workforce; moreover, it also has the capability to subdivide its people into useful departments where highly talented and skilled experts can be assigned. With this workforce, the company can ensure the speed and quality of its production. The company has been operating for years; years of successful business operation strengthens its capability to overcome past and even new challenges with tried and tested strategies. This capability also allowed the company to introduce its new products and implement strategies at the right time and place.


The company has the ability to acquire useful customer data; however, due to volume, the company is unable to analyze all of the valuable information. It must have the team or instrument that will sort market details and construct them into usable concepts or strategies. The company had gone through times when it is unable to sustain constant growth.

Opportunities The company can use other means of distribution like internet retailing, which can possibly augment its sales and market access. The continuous use of computers and printers by office workers and home owners alike suggests that these gadgets will be in demand for several more years. The ability of the company to acquire pertinent consumer data allows it to develop products that are based on current consumer needs and preferences. This enables HP to develop new products as well as establish customer satisfaction and loyalty Threats

The computer and printer sectors are both highly competitive industries. In the computer industry major companies Compaq, Dell and IBM are some of the major companies producing similar products. On the other hand, Epson and Canon are some of the strongest rivals of HP in the printer industry. Various marketing risks are also considered as threats for the company. Though HP can apply any marketing strategy, its effect on the market can vary. These effects must be analyzed thoroughly as it could greatly affect the business outcome.

Company Analysis The data from the SWOT analysis showed that HPs strengths are basically derived from two major sources: human/financial resources and experience. Through these strengths, the company is capable of producing quality products that can be

marketed effectively. Its long experience and presence in the computer/printer industry have allowed the company to acquire a strong hold on the market. The access to these sources suggests that HP is capable of employing most marketing strategies successfully. Nonetheless, there are still obstacles.

INTERPRETATION With the merger of companies HP and Compaq, Hp has very clear benefit that resulted from the HP and Compaq merger. Both Compaq and HP were in an unwinnable price war with Dell. From the Porters five forces model of HP Compaq in laptops it is cleared that there are moderate entry barriers, threat of substitute is moderates, intercategory competition is high, bargaining power of buyers is moderate, bargaining power of supplier is High. HP focuses on simplifying technology experiences for all of its customers from individual consumers to the largest businesses. With a portfolio that spans printing, personal computing, software, services and IT infrastructure. HP top business priorities are to lower costs, IT systems/technology improvements, Increase business growth, Improve efficiency, Customer service improvements. The professional staff of the Hewlett-Packard Co. (HP) Market Research & Information Center is trained to be expert in research strategy and technique as applied to marketing decision making.