Hp and Cisco

Hewlett-Packard is one of the largest corporations in the world. Hewlett Packard is divided into three general segments: imaging and printing systems, computing systems, and information technology services. After acquiring Compaq Computer Company, HP is currently the world’s largest computer company. HP is a growth oriented corporation that strives to stay ahead in all of its market segments.

The company has been undertaking partnerships with others in a way to advance new technologies

This level of partnership is critical in building relationships, improving interoperability and demonstrating commitment to our partners; however, the program operates at the tactical level.

In addition, Cisco only chose partners that complimented their abilities to integrate their expertise and products with those of Cisco’s in-house product line in order to gain a market share for their own product lines. One of the main successes of standardization was the acquisition process. Most acquisitions were fully integrated within 60-100 days. Cisco acquired many small and medium size businesses that brought technology into its product line. It allowed them to gain R&D for a relatively low cost. Standardization allowed Cisco to be systematic about the way things were done which helped to make it an easy, repeatable process that could be duplicated quickly.

Moving toward establishing win-win relationships in the context of strategic alliances, organizations are looking at total cost as a criterion, thus allowing win-win relationship building to lower total costs. Most public and private sector organizations are expected to use integrative (win-win) versus distributive (win-lose) negotiations, as they move away from adversarial and toward collaborative relationships with suppliers.

The Alliance System meant that leaders had to choose between backing off or fighting with all their might. It was simply common opinion that everyone had to be together, however each nation was unique

Reportedly, analysts mentioned that Cisco’s supply chain structured like a pyramid. Based on Figure 2 below, there were quite a number of contract manufacturers on the second tier who were responsible for final assembly and they were dependent on large sub-tier companies for components such as processor chips and optical gear. And in turn, those companies were dependent on an even larger base of commodity

As mentioned in Army Doctrine Reference Publication (ADRP) 6-0, establishing collaboration is difficult but necessary and all participants must share information, perspectives, question assumptions, and exchange ideas to establish and maintain understanding (United States Army, 2012). Having a shared understanding is the only method to resolve potential misunderstandings and effectively

Hewlett-Packard Company is the world’s largest technology company, providing IT services, software, personal computers, printing services and solutions for consumers and businesses (Hewlett-Packard, 2008). The company recently acquired Electronic Data Systems (EDS) which is part of HP’s strategy of building the world’s best hardware business (EDS, 2008). Hewlett-Packard has always been an innovative company with the products and services that they offer. The company has developed software applications to optimize the performance of hardware and differentiate it from its competitors in the marketplace. Over the past three years HP has acquired 26 companies, developing experience in integrating new businesses (EDS, 2008).

From incorporation in 1984 until around 2004, Cisco monopolized the industry of commercial routers and networking products. However, competition from rising giants like Juniper Networks Inc. (JNPR), Nortel Networks Corp (NT) and to some extent also Alcatel-Lucent (ALU) has given Cisco growing competition. Cisco is now in a position where competition drives its operating practices and inspires constant improvements in areas such as customer service and sales/marketing in order to maintain its market leadership. Though Cisco has lost market share to rising competitors, overall outlook remains good with new product lines set for production.

By the late 1990s, HP’s business was facing major problems which are reflected in its financial results. Despite a 9.71% increase in total net revenue, HP faced declining net earnings of 6% from 1997 to 1998. The company had also experienced a slow and decreasing growth in revenue in comparison to its main competitors. From 1996 to 1998, HP’s annual revenue growth decreased from 21.89% to 9.71%, while one of its main rivals, Dell, was able to maintain an over-40% revenue growth in each year within the same period. Moreover, HP’s failure to satisfy customer needs and catch

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.

2. Given the industries in which Cisco competes, what are the implications for the major types of buying situations?

Hewlett-Packard is a global technology company and after its merger with Compaq it became world 's biggest computer hardware and peripherals company in the world, ranking 20 in the Fortune 500 list. Company is doing business in more then 170 countries including the ones that are developing and under-developed. Being a large company gives HP many advantages like dominating the market for printers, both laser and inkjet, and both for consumers and companies using the economies of scale. The company is also taking an active role in developing the capacity of new markets all around the world, engaging with other multinational corporations, non-governmental organizations and other world

Jim Heal of Hewlett-Packard, Inc (HP) and Mike Thomas of Cisco Systems, Inc (Cisco) were both leaders of strategic alliance management teams that were formed in early 1997. Both teams were created to help facilitate the strategic alliance that was formed between HP and Cisco. As with all alliances, a wide variety of issues and challenges emerged that had be to be resolved and it was the purpose of the alliance teams to solve such issues. Beginning in February 2002, a formal contract to expand the HP and Cisco alliance was being negotiated and it was during this time that several important challenges emerged that would require the full attention of Mr. Heal and Mr. Thomas.