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'
Able to diversify its product range to meet market demand including women’s wear, men’s wear, accessories and home wares.
(b) diversified its product portfolio; extend target customers and meet the variable needs of customers.
Changing Market Conditions In the early 1990's, while technological innovation continued to drive the company's success, many business units were being forced to compete on other dimensions. In consumer product lines, low prices, broad availability and ease of use had become competitive requirements. Lew Platt, HP's current President and Chief Executive Officer, once acknowledged the importance of improving customer service and responsiveness, We're not doing as good a job in order fulfillment as we need to. In fact, it's where we get our lowest marks from customers. We have to be a lot easier to do business with. Improvement in order fulfillment will strengthen HP's competitiveness, increase customer satisfaction and reduce expenses, so this is an
Hewlett Packard is about extending beyond the limits of classical physics and provides a quantum leap in performance, reliability and security. With the ever changing world of technology and the high demand to stay ahead of the curve, HP Labs is inventing today and for the next generation a new line of HP products and solutions. HP focuses on partnering with you, the visionary customer by solving your enterprise issues. HP has the scale, ideas, expertise and unmatched portfolio of products and services to deliver end-to-end innovation and value. 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.
Best Buy Co., Inc. is currently the world’s largest retailer for consumer electronics. The company has 1,400 brick and mortar stores and is a popular online retailer as well. The stores serve as display room for various online retailers. Best Buy consumers can purchase electronic products such as mobile, corded and cordless phones, televisions, cameras, personal computers, laptops, appliances and more (David & F.R., 2015). Today’s society relies on convenience and technology, forcing companies to implement new ideas and projects in an effort to maintain their ability to compete with other companies. For continued success the company must look at the internal and external issues the company may face as well as their competitors and their best practices that are contributing to their success.
HP, an expert in the hi-tech industry understands the fiercely competitive environment where technological and innovative advancements could create turbulent
• At the beginning life cycle (ramp-up) of product, the cost of stock out would be high because for every order lost would not only result in lost in revenue but also future revenue. The theory is the customers tend to buy similar product and/or brand to keep consistency. In addition, it takes over four life cycle of product before that customer returns to HP.
The PC group within HP PPS has been refocused around customer needs. The PC group changed its product line which had a stronger focus on product design. New business models have been the focus of the print group. Business models such as Ink Advantage, is a program designed to target price-sensitive customers in emerging markets. Ink in the Office is an initiative of the print group that targets business customers. The group has expanded differentiated services and solutions by leveraging HP's portfolio of hardware and software, including combining multifunction printers with Autonomy management solutions to develop cloud-based document management services (HP,
1) Evaluate HTC’s performance as described in the case. What are its competitive assets and liabilities?
2. What do you think of the way the team set out to find a market for the Kittyhawk? What correct turns and what wrong turns did they make?
PC industry is characterized by fast declining ASP year over year. Together with the increasing component costs from 2009, both Dell and HP are facing squeezing profit margins (HP 2010; Dell 2010). In the first quarter of 2011, HP’s gross margin for its Personal System Group (PSG) is as low as 6.4% (Epstein 2011). Similarly, Dell’s gross margin of PCs is often 3 to 5% (Wang 2010). This indicates that if both
The best strategy to resolve the problem of “What strategies that Hewlett-Packard Company should adopt to explore the Vietnam market” is joint venture with local distribute. The Hp Company doesn’t know with the environment there so through the Joint-venture, the company can more
• variety-based positioning - based on producing a subset of an industry's products or services; involves choice of product or service varieties rather than customer segments. Makes economic sense when a company can produce particular products or services using distinctive sets of activities. (i.e. Jiffy Lube for auto lubricants only)
It is aimed at the broad mass market and involves the creation of a product or service that is perceived unique throughout the industry. The company or
Page eight of the case begins to outline some of the challenges that the HP-Cisco alliance had already faced concerning the sale of joint products. For example, we learn that at HP, Cisco products did not count towards a sales representative’s quota and this resulted in a decline in sales of Cisco equipment by HP sales representatives. Further, if HP or Cisco sales staff had to master not only their parent company product line,