Comparison the Value Proposition of

4681 Words19 Pages
Comparison the Value Proposition of

Dell and Hewlett-Packard

Table of Contents
Introduction………………………………………………………………………...….4
Part One……………………………………………………………………………….4
1.0 Analyse the value proposition of Dell and Hewlett-Packard……………………...4
1.1 Mission analysis…………………………………………………………….…5
1.2 Market definition………………………………………………………………5
1.3 Market Segmentation………………………………………………………….6
1.4 Market Attractiveness………………………………………………………….6
1.5 Differentiating capabilities and Strategic position…………………………….7
1.6 Marketing assets……………………………………………………………….8
1.6.1 Customer Loyalty………………………………………………………..8
1.6.2 Demand Management……………………………………………………9
1.7 Brands………………………………………………………………………….9
2.0 Evaluation of Dell and
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In comparison, HP operates in seven segments: Imaging and Printing, Personal Systems, Enterprise Systems, HP Services, HP Financial Services, Software and Corporate Investments and their principal activity is to provide solutions and services to individual consumers and businesses.

1.4 Market Attractiveness "Market Attractiveness is the degree to which in opportunity fits with our goals and capabilities" whereas market position reveals how well we can do in this market or segment." (Piercy 2002) Dell is recognised for their products, true low-margin, high-asset-turn business that is much more concentrated on turning out a wide range of system desktop PCs, notebooks, etc.
Figure 2 Market attractiveness and position (Source: Piercy 2002 p434) High Low

Strong
Market
Position

Weak

In contrast, HP has a very valuable printer business that Dell does not have in their PC maker. The reason that printers are so profitable is because demand of ink and other necessities. In the PC market HP could not afford to Dell's price margin as they need to spend on their marketing and physical supplies.

1.5 Differentiating capabilities and Strategic position

According to Piercy, differentiating capabilities is put together
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