Strategic Management; Gaining and Sustaining Competitive Advantage at Hewlett Packard

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The key strategic issues facing Hewlett Packard as it seeks to generate and sustain competitive advantage. The objective of any organisation is to "Create and sustain long term competitive advantage" get quote Corporate strategy is central to achieving this through making assumptions of an organisation's external environment, its resources, and formulating a plan of how they should operate. The organisation upon which I have conducted my research: Hewlett Packard (HP), have recently been reported of having "Some cost and profitability problems" (Analyst-Goldman Sachs 2005) Added to this has been the threat from competitive rival Dell as their profits and market share grew. Using key frameworks, I will examine and conclude…show more content…
Despite most organisations finding it "difficult, expensive and time consuming" (Anthony Becket 2007) to change their competences, this change is one of ‘evolving' rather than ‘invention. However, given the strategic issue of poor profit levels, a change was vital. HP, from this restructure and streamlining of processes and activities, can create greater value from their competences, enabling them to better deliver against critical success factors. It is said that "the continual improvement in cost efficiency is a vital strategic capability if an organisation is to continue to prosper" p156 HP's structural change is a positive move in their efforts to add this vital strategic capability, maintaining the edge on rivals, particularly Dell, as it is reported to save them $1.9 billion annually starting in 2007.Source: Mike Hurd, CEO HP Value Chain analysis "Organisations can achieve competitive advantage by delivering value to customers, and understanding how that value is created or lost" strat book p.136 The ‘Value Chain' can be used to highlight how this value is created or lost in Hewlett Packard's internal activities. Where

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