Headquarters of HP

CONTENTS
Channel Management Factors leading to Managing different channels Activites/Functions History Mergers and Earnings Traditional Approach Why HP went online Benefits of going online Why HP choosed FedEx Supply Chain Solution Summary

HP PSG Market share In Pakistan

11%
7% 5% 10% 7%

60%

HP

Lenovo

Dell

Acer

Asus

Others

HP PSG PRODUCT SHARE IN PAKISTAN MARKET

Laptops per Qtr. On avg. Desktops per Qtr. On avg. LCD/LEDs per Qtr. On avg. 4500 units 3500 units 6000 units

HISTORY
HP is an American multinational information technology Bill Hewlett and Dave Packard are the founders of H.P The company originated in a garage in nearby Palo Alto In 1939, Packard and Hewlett established (HP) in Packard's garage with an initial capital investment of US$538 HP incorporated on August 18 1947, and went public on November 6 1957. Their very first financially successful product was a precision audio oscillator, the Model HP200A The Walt Disney Company was one of earliest customers of H.P

MERGERS AND EARNINGS

HP's posted net revenue in 2009 was $115 billion In 2006, the intense competition between HP and IBM tipped in HP's favour In 2008 HP became #2 globally in IT services as reported by IDC & Gartner

In November 2009, HP announced the acquisition of 3Com

On April 28, 2010, HP announced the buyout of Palm

On August 6, 2010 CEO Mark Hurd resigned

DISTRIBUTION IN PAKISTAN
DISTRIBUTORS
Paksitan Office products (POP) Advance Business Systems Spectrum

TIER-1 PARTNERS
Mushko Electronics Pvt.Ltd Jaffer Brothers Pvt.Ltd Premier Business Systems New Horizon Computers

CHANNEL OF DISTRIBUTION
HP Sells Their Pcs and Laptops thru multi-channel i.e. on-line, disti,retail outlets etc.

HP also Distributes their Products through Multibrand Malls and Computer Malls (like HP Experience Zone)
It also has Dedicated Stores in Major Cities like Karachi,Lahore and Islamabad and Multan. On-line retail channel www.hpshopping.com

WHY HP WENT ON-LINE?

Since couple of decades HP has a reputation of exceeding customers expectations.
The main parameters of going online was Reducing costs, Increase Sales revenue, and strengthen customer relationships

HPs online store (www.hpshopping.com) was launched in early 1998 and experiences revenue growth of over 500% annually.
HP decreases returns cycle times by 80%. Online status tracking offers complete visibility throughout the returns process

ONLINE CHANNEL LEADS TO

- Direct contact with customer. - Removal of intermediaries. - Reduction in cost. - Reduction in time. - Proper assessment of customer needs

FACTORS LEADING TO CHANNEL

Competition like Dell/Aer/IBM Lenovo/Fujitsu siemens Competitive pressure

e-commerce a dimension less medium comprising hundreds of opportunities for every buyer and sellers.
Cost reduction

Desire to manage vertical markets

HPSHOPPING.COM
- Hpshopping.com was ranked #1 in retail revenue and #3 in PC product sites. It also ranked in the top ten for overall revenue and brand recognition.

WHY HP CHOOSED FED-EX?

HP wanted a provider with industry-leading experience and capabilities, including: Proven expertise in information technology. Experience in e-commerce and channel management HP shopping.com asked FedEx to develop a comprehensive solution that would manage the entire processfrom order management to order fulfillment

CHANNELING SOLUTION Recommendations

1. Market segmentation (loosing market due to UAE) 2. HR Policies of retaining good people 3. Customized PC and Laptop offerings

CHANNELING SOLUTION Recommendations

1. Market segmentation (loosing market due to UAE) 2. HR Policies of retaining good people 3. Customized PC and Laptop offerings

ORDERMANAGEMENT PROCESS

Warehouse management