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Case Study of Hewlett Packard

Satisfactory Essays

HP study case analysis
Introduction
Hewlett Packard provides an array of products that range from but are not limited to personal computers, computer hardware, and software to its customers. Turban, Sharda, Delen, Aronson, Ling & King (2011) averred that HP's wide product portfolio makes it easy for its customers to make viable choices. This has helped enhance market appeal for its products. A wide variety of products that HP deals in has exposed it to challenges like huge operational costs. HP has been exposed to overall demand volatility, reduced forecast accuracy, and a host of revenue and cost impacts across its products' life cycle. It has had to soak in increased inventory costs, poor order responsiveness, high operational costs, high research and development costs, and bludgeoning marketing and administrative costs. HP has also experienced increased liabilities to channel partners. Complexity in a product line has threatened to drive HP's business to its competitors. Its Personal System Group order fulfillment performance has been poor relative to its competitors'.
Analysis and Evaluation
Turban et al (2011) attributes HP's poor show to issues pertaining to customer satisfaction and market share. Kathy Chou, the vice president of the Worldwide Commercial Sales at HP opined that as HP's product variety grew, their forecasting accuracy suffered.
For purposes of product variety management and responding to diverse needs of businesses throughout its products'

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