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HP Desktop

2K10MKT15 Md. Kalim Ahmed
2K10MKT16 Monodeep Basu Roy
2K10MKT17 Mukesh Kumar Sinha
2K10MKT18 Nilanjan Das Adhikari
2K10MKT19 Nirupam Saha
2K10MKT20 Pankaj Kumar
2K10MKT22 Pritha Chakraborty

To be Covered:
 Brief History Of HP
 Its Improvement over time
 HP Market share over time
 Supply Chain Improvement of HP
 HP Existence competency
 Marketing Strategy
 HP desktop Variety
 HP Desktop Reliability
 Comparative study: Dell & HP desktop
 Product Line Complexity Management of HP
Hewlett-Packard: History
Stanford University classmates Bill Hewlett and Dave Packard
founded HP in 1939. The company's first product, built in a Palo
Alto garage, was an audio oscillator—an electronic test instrument
used by sound engineers.
One of HP's first customers was Walt Disney Studios, which

purchased eight oscillators to develop and test an innovative

sound system for the movie Fantasia

200A audio oscillator: top HP's first product, the 200A audio

3 view oscillator
How HP came into Existence:
 One week long fishing expedition brought Bill
Hawlett & Dave Packard as close friends
 With the encouragement of Standford
professors they both started their common
 Thus Hewlett-Packard Company is
founded January 1, 1939
 They decide the company's name with a coin
 In 1942 Construction begins on the first HP-
owned building
 The building
 has an open floor plan
Early Years:
 The company was originally rather unfocused,
working on a wide range of electronic
products for industry and even agriculture.
 Hewlett-Packard's HP Associates division,
established around 1960, developed
semiconductor devices primarily for internal
 They introduced the world's first handheld
scientific electronic calculator in 1972

 In 1984, HP introduced both inkjet and
laser printers for the desktop
 On March 3, 1986, HP registered the HP.com
 In the 1990s, HP expanded their computer
product line, which initially had been targeted
at university, research, and business users, to
reach consumers
 On September 3, 2001, HP announced that an
agreement had been reached with Compaq to
merge the two companies


2000 $48.8billion 85500

2001 $45.2billion 88000
2002 $56.6billion 141000
2007 $104.3 billion 176000
2008 $118.4billion 321000

HP Pavilion

7 Barney Oliver, HP Labs Founding Direct

HP Existence:
 Constant up-gradation
 Active research Facility
 Variation in product line
 Sound technology to produce at least cost
 Heavy market research
 High distribution channel
 Limited advertising to control cost

Contd…with example:
 The company’s central research facility, have
proven the existence of the fourth
fundamental circuit element in electrical
 This scientific advancement could make it
possible to develop computer systems that
have memories that do not forget, do not
need to be booted up, consume far less
power and associate information in a manner
similar to that of the human brain.
 “memristor” – a blend of “memory resistor” –
which has the unique property of retaining a
history of the information it has acquired

Marketing strategies
 Profile : Profile HP is a technology solutions
provider to consumers, businesses and
institutions globally
 Products : Products HP is committed to developing
products, services and information that are
accessible to everyone, including people with
disabilities or age-related limitations
 Solutions :Solutions HP offers specific solutions for
your home or business
 Target Industry Segments : Target Industry
Segments IT & ITES Automobile, personal usage
& Auto Ancillaries Aerospace & Defense
Manufacturing Industries Engineering Service
Providers (ESP) Consumer goods Architecture &
construction Services – Telecom, Travel &
Commitment to excellence: HP lab
began an experimental economic
program in 1994
 HP Labs developed in-house experimental
economics capabilities instead of relying on
academic institutions for consultants because
business considerations make such consultation
impractical. Business decisions must be made in
a timely fashion, even if they are made with less
than perfect information. HP typically develops its
potential business in three to six months,
depending on the cycle of contract and policy
decisions. Thus, we often design our experiments
in the expectation that redesign and repetitions
are unlikely, except in the most critical situations.
Academic researchers generally want to establish
statistical significance, necessitating replications
11 and increasing the turnaround time.
HP Desktop Varieties:

 »HP Pavilion
 »HP Omni
 »HP All-in-One
 »HP TouchSmart PC
 »Compaq Presario

HP Pavillion:
 HP Pavillion p6000 series: photo music videos &
surfing: p6500, p6700. p6300
 HP Pavillion Slimline s5000 series: compact,
powerful & eleminates the bulk:
 HP Pavillion Elite: Designed to deliver speed,
performance & style
 Equipped with essential features for everyday
computing, the HP Pavilion Desktop PC is the
obvious choice for regular family use.

Easy to maintain, it comes complete with wireless

connectivity and ample media storage. Keeping
you connected to the world and entertained at all

HP Omni:
 Simple to set up
 Uncluttered your desktop
 HP MediaSmart 3.0 software
 The new HP Omni PC puts everything you need
in a single package. All it takes is just 3
simple steps – open the box, plug in a single
cable and get your digital life going. Explore a
world of possibilities, with easy access to all
your multimedia and entertainment content
via the HP MediaSmart application.

HP All in one:
 HP Pavilion All-in-One MS220 Desktop PC series
 HP Pavilion All-in-One MS230 Desktop PC series
 HP All-in-One 200-5100 Desktop PC series
 HP All-in-One 200-5000 Desktop PC series
 Everything you need packed into a slim &
stylish design. The HP All-in-One PC comes
with one power cable for easy setup, so you
can begin your digital adventure right out of
the box. Explore a world of possibilities, with
easy access to all your multimedia and
entertainment content via the HP MediaSmart
15 application.
HP Touch smart PC
 HP TouchSmart 600-1200 Desktop PC series
 HP TouchSmart 300-1200 Desktop PC series
 Easy navigation
 Nifty Magnet
 Quick access
 Galore of Apps
 The world’s first multi-touch notebook literally
puts the future right at your fingertips.

Compaq Presario:
 Compaq Presario CQ3500 Desktop PC series
 Compaq Presario All-in-One CQ1-1000 Desktop PC
 Compaq Presario CQ3400 Desktop PC series
 Compaq Presario CQ3300 Desktop PC series
 Compaq Presario CQ3200 Desktop PC series
 Space-saving design that brings together the
computer system and display monitor into
one stylish package
 Technology that’s ready to lend you a hand by
combining performance, productivity and
value More pleasant computing experience
with a quieter internal cooling fan
HP Desktop continues to disappoint

Main Competitor: Dell
 Three Golden Rules of DELL:
1. Avoid inventory
 2. Always listen to the customer
 3. Never sell indirect.

 Sales Of Computer Systems Directly To
 Elimination of Retail Middlemen
 Computer System Construction Based Upon
Individual Customer Needs
 Quick Introduction of State Of The Art Technology
 Elimination Of Heavy Inventory Investment

Dell’s Strategic Model

Dells strategic result:
 Effect on working capital

Cash Conv ersion Cycle
 0
2000 2001 2002 2003 2004 2005
 -20
 -30

 Reduction of
Inventories 2005

Days of sales outstanding 32 31 28 29 32 34

Days of supply in inventory 4 3 3 4 5 6

Days in accounts payable 73 70 68 69 58 58

Cash conversion cycle -37 -36 -37 -36 -21 -18

vDell computer used the same principal to sell
computers. The company focused on selling
customized products directly via mail to shabby
vDell assured product quality by extensively
pretesting all the configuration options it offered.
vA 24-hour telephone support system comprising
well-trained technical representative provided the
first post-shipment level of support.
vDell serviced its customers with combination of
home based telephone representative and field
based representative.
vDell maintained a month’s worth of component
inventory but it suppliers generally carried
supplemental buffer stock that could be
22 immediately shipped.

Custome Custome
r r

Virtual Integration

Supplier PUSH
Supplier s

Typical PC Supply Chain Dell Supply Chain

23(Compaq, HP, IBM, etc.)
HP Desktop Supply Chain

Cycle time for production and

Factory Cycle Time

1 Week


4 – 5 Weeks
Europe Asia

 HP is leader of the IT market and equal top with
AT&T in the ITC market
 Achieved revenues of $30.7 billion – an 11%
 Net profits were $1.8 billion
 Its IT market share has declined from 4.9% to
3.7% since 2003 (adding the revenues of
acquired companies)
 Has gained share in servers, PCs, outsourcing
and infrastructure software
 Has lost share in storage systems and
 Lacks the full-on approach of Apple
26Lacks the solutions approach of IBM
HP’s Share Grows In Asia Pacific, But
Declines Everywhere Else
 In the Americas (of which the USA is by far the
largest component) its share has dropped from
6.5% at the beginning of 2003 to 4.3% in
calendar Q2 2010
 In Asia Pacific HP’s market share has grown from
2.2% to 2.6% over the period between Q1 2003
and Q2 2010;
Dell Beats HP to in Indian Desktop

 Dell was already enjoying top position. By showing

tremendous growth in desktop PC sales during
the third quarter.
 Dell has retained the market leadership with an
increased market share of 16.7% while both HP
(13.7%) .
 In the second quarter of 2010, Dell had emerged
as the market leader in India for the first time
with a share of 15.2%, while HP (14.3%)

Supply Chain Improvement…
Im p ro ve m e n t d u rin g th e e a rly 1 9 8 0 s
Manufacturing cycle time reduced
8-12 weeks ==> 1 weeks
Average inventory reduced
3.5 months ==> 0.9 months
All finished goods inventory eliminated
Importance of response time and transportation time increased
Further improvements should be made on supply chain

Improvement of supply chain in 1990

Time between order and delivery reduced
Europe & Asia:
5.25 months ==> 1.25 months
4.25 months ==> 0.2 months
Importance of transportation time increased
Europe & Asia: 1% ==> 12%
North-America: 20% ==> 80%

Managing Product Line Complexity: HP Desktop
Hewlett-Packard's team of operations research professionals develops five-step process to
measure cost/value tradeoffs.

Step 1
 Identify cost areas impacted by product line complexity. The first step is
to identify which cost areas are impacted by product line complexity. To
avoid overlooking hidden costs, conduct a thorough review of material,
information and financial flows along the value chain.
At HP's consumer PC division, we conducted interviews with operations,
finance and marketing staff to gain a broad perspective on how complexity
31 their organizations. We subsequently identified the five cost
categories shown in Figure
Step 1

Thank You…