Hewlett-Packard Company, founded in 1939 is popularly calledHP, A multinational American information technologycompany founded by Bill Hewlett and Dave Packardwho are both graduates of electrical engineeringfromStanford Universityin 1935. HP is the world biggest and largest manufacturer of electronics. The company headquartered is located inPalo Alto,California, USA and second largest Industrial Corporation in California. HP is Americas largest and eighteenth in the world (hp.com). With branches and offices in almost every country of the world and is now one of theworld's largest information technology companies.
There are numerous businesses for HP; ranging from Electronic components and services, Computer products services and support, Medical electronic equipment and services, Test and measurement products and services to chemical analysis (Oppaper.com, 2011)
HP successfully retained it global leadership position in 2008 in the production of laser, inkjet, large format multi-functional printers and in addition, presently championing the leadership position in the hardware industry. HP was reported by IDC & Gartner to be the second in IT services provider globally (hp.com)
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HP, a famous and largest technology company in the globe, provides a wide range of services and products ranging from printing and personal computing products with IT services. It creates software and solutions that simplify the technology skill for consumers and organizations. HP creates new space of opportunities for technology to a sustainable impact on environment, individuals, businesses and including the governments. Hewlett and Packard the founders constantly emphasis that the rationale for Hewlett-Packard was relentless contribution, explaining the fact that every particular product of HP had to offer the customer a clear, distinguishable contribution compared to any other product from competitors. HP brings together a complete portfolio that spans personal computing, printing, software, IT infrastructure and services to solve it customers needs and problems (hp.com).
HP uses various important strategy of Merger, Acquisition and consolidated subsidiaries to again constant revenue and competitive advantage in the market place. HP has been able to employ marketing skills to make their products and services available and unique to the user.
Merger and Acquisition (M&A) are a very important business strategies employ by business managers in recent season in IT Corporation to create value and competitive advantage in the market environment. The business process in IT corporations requires spotting opportunities in other targeted firms and consequently acquiring the targeted firm and the number varies from small start up to big and well-established firms, this growth strategy can be used to create value and gain competitive advantage.
HP has experience huge success and high revenues by merging and acquiring over 116 companies since 1986 to around 2010. HPmergering withCompaqin the year 2002, and the subsequent acquisition ofEDSin 2008, led to high revenues of $118.4 billion rising up the no 9 positionin Fortune 500ranking of 2009.In 2009, HP made a move and acquired 3com for a cost of $2.7 billion.
Figure: 1. HP Service Business Model for 2009 and 2010 (Annex bulletin)
The acquisition of 3Com (3Com own tippingPoint) led to a foothold in security, routers, and switches making HP to becomes the No. 2 in networking vendor worldwide. By 2010, HP announced the acquisition of Palmfor a cost of $1.2 billion. From time on, different acquisitions boosted and strengthened HP competition in software business.
The largest software company acquired by HP was calledMercury Interactivefor a cost of US $4.5billion. This acquisition tremendously doubled the extent of HPâ‚¬â„¢s software business to US $2 billion annual revenue (hp.com).
The vast majority of different companies acquired by Hp doubled its business opportunities with great expansion. For instance, the acquisition of Apollo computers enabled HP to take part and become the present day largest and biggest computer workstation suppliers and the acquisition of the company know as F.L. Moseley created room of opportunity for HP to successfully part take in plotter business, which later revolutionized to the present printing group.
Figure: 2. HP + 3Com (hp.com, 2009)
HP, annual review revenue for the year 2010 reveals that the company was a huge success. HP's revenue for the fiscal year ended on Oct. 31, 2010: $126 billion. â‚¬Å“As HP continued to deliver quality product and services and expanding margins while experiencing growth and increasing earnings per share double digits," said Cathie Lesjak, HP executive vice president and chief financial officer. "We continue to invest in the business, in sales and in R&D, while driving further efficiencies." (hp.com)
Always on Time
Marked to Standard
Figure: 3. R&D Spending from 2007 to 2010 (Bnet.com, 2010)
Figure: 4. R&D Revenue percentage (bnet.com, 2010)
Over time of the Hpâ‚¬â„¢s fiscal year 2007, R&D spending including new products and development shown to have increased. HP using a good management style of high level of investment in R&D.
Net revenue for the full fiscal year of 2010 was $126.0 billion, up 10% compared with the prior-year or up 8% when adjusted for the effects of currency. GAAP operating profit was $11.5 billion, and GAAP diluted EPS was $3.69, up from $3.14 in the prior year. Non-GAAP operating profit was $14.4 billion, and non-GAAP diluted EPS was $4.58, up from $3.85 in the prior-year. Non-GAAP financial information excludes $2.1 billion of adjustments on an after-tax basis, or $0.89 per diluted share, related to the amortization of purchased intangible assets, restructuring charges and acquisition-related charges (hp.com).
Figure: 5. Hp one year price (seekingapha.com, 2010)
Figure: 6. Revenue by Quarter from 2007 to 2010, (bnet.com, 2010)
Figure: 7. Business segment and region 2010 (annex bulletin)
Fourth quarter revenue was up 10% in the Americas to $15.1 billion. Revenue was up 6% in Europe, the Middle East and Africa and up 8% in Asia Pacific to $12.4 billion and $5.8 billion, respectively. When adjusted for the effects of currency, revenue was up 9% in the Americas, up 11% in Europe, the Middle East and Africa and up 3% in Asia Pacific (hp.com).
Revenue from outside of the United States in the fourth quarter accounted for 64% of total HP revenue, with revenue in the BRIC countries (Brazil, Russia, India and China) increasing 12% while accounting for 10% of total HP revenue (hp.com).
Figure: 8. HPâ‚¬â„¢s Rvenue by Regions 2003 to 2010 (ITcandor, 2011)
HP serves more than one billion customers in more than 170 countries on six continents. HP revenue as at 2010 was $ 126.033 billion, Operation income was $11.479 billion, Net income was $8.761 billion, Total assets was $124.503 billion, Total equity was $40.449 billion and the numbers of employees increased after the acquisition of 3com to 304,000 worldwide(hp.com).
Figure: 9. Hp Revenue by Segment Q1FY10 (wikinvest.com, 2010)
Figure: 10.HP Revenue by Business Q4FY10 (annex bulletin)http://djurdjevic.com/Images2010/17HP_411.jpg
Figure: 11. HP Revenue by Business Q4FY10 (Annex bulletin)
Table: 1. HP Operational Segment Revenue for 2009 and 2010 (Bnet)
HP ranked No 10 in US, 26 in the Globe in 2010 Fortune 500 ranking.Shipping more thanone millionprinters per week. HP ship48 millionPC units annually. Oneout of everythreeservers shipped worldwide is from HP Company. HP Software makes calls possible for more than300 millionmobile phone customers around the globe. HP helps50 millioncustomers store and share over 4 billion photos online.HP supports the top200 banksand more than 130 of the worldâ‚¬â„¢s major stock exchanges (hp.com)
Gartner 2010 server shipments
Table: 2. Server vendor shipments 3Q10 (Techeye.net)
Figure: 12. Total Revenue of Companies, (pingdon.com, 2008)
Figure: 13. Total profit of Companies, (pingdon.com, 2008)
Figure: 14. Total assets of Companies, (pingdon.com, 2008)
HP's mission is to invent in technologies and services that create business value, drive social needs and benefit, touch and improve the lives of its customers with a clear focus of affecting a greatest number of people possible (oppaper.com, 2011).
Corporate Structure and Management Style
The founders, popularly called Bill and Dave by relatives and employees, successfully developed a unique management style that is unrivaled by any other firm, presently called The HP Way. In Bill's words, the HP Way is "a core ideology, which includes a deep respect for the individual, a dedication to affordable quality and reliability, a commitment to community responsibility, and a view that the company exists to make technical contributions for the advancement and welfare of humanityâ‚¬Â (House, Price, 2009).
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HP founders consider value not only in creating great products but also on creating a friendly and structured corporate culture. These beliefs became the establishment of the "HP Way." While "HP Way" is to earn the respect, trust and loyalty of others, also give respect to other individuals and create an enabling environment that both celebrates individualism and encourage and supports teamwork. From managers, it demands sharing the corporate objectives and assisting the employees in understanding their roles and responsibilities. The employees are taught to pursue the corporate goals through open mind and communication. The HP Way can be describe as an objective-oriented philosophy, in which all constituency can share a single value and work towards one goal. Primarily, the HP way inspires entrepreneurship spirit among all employees. Employees are encouraged and challenged to innovate that leads to growth in the company. Secondly, Hp shares the profit and employees are rewarded according to their contributions and performance. Thirdly, open communication and corporate teamwork are the core values of the company. Fourthly, management trusts and respect employees, fostering a co-operative organizational culture. One of the most important characteristics of the HP Way is the trust in the organization. Even if trust can be an intangible asset for a company, it would be the strongest competitiveness compared to other company and which can be differentiated from other company since trust is based on personal affection(House, Price, 2009).
The HP Way is clearly different from usual western management style, which is normally based on rational behavior. The HP Way clearly focuses on teamwork, forging into a highly developed and collaborative workplace thorough successful cooperation within the organizations. HP managed to avoid the traditional and habitual weaknesses of American companies (oppaper, 2011).
HP way tents are as follows:
Trust and respect for individuals.
Focus clearly on a high level of contribution and Achievement.
Doing business with uncompromising integrity.
Achieving common objectives through teamwork.
Encouraging flexibility with innovation. (hp.com, 2011)
HPâ‚¬â„¢s values, approach, attitude, culture and philosophy are built solidly into the fiber of its employees and practices, broadly determining its overall capability. The future can be inferred from the past. Not, of course, in a lineal revenue or even product sector projection, but absolutely in terms of competitive response and opportunity recognition. The legacy of the founders and cultural imprint of the HP way are not passing historical phenomena. They are deeply embedded. Rather than becoming anachronistic, even impediments to coping with todayâ‚¬â„¢s world, they are more relevant than ever to provide a compass for innovative and differential contribution, as this huge corporation, the largest high-tech firm on the globe becomes ever more virtual and diffuse (House, Price, 2009:5)
The HP has a unique management style in American business, with fundamental leadership lessons at many junctures. The evolution of a successful company with strong allegiances to its employees and it communities is compelling enough. When that evolution is coupled with consistent profitability and revenue growth comparably to the most powerful global corporations, it becomes imperative to understand HP strategies and approaches. HP is known primarily for its employee-centric HP way, has always been a high-tech electronic equipment manufacturer. HP atomized its division by an order of magnitude, creating unusual renewal strengths previously unknown in large enterprise and fueling a consistent growth rate far larger than in any other high-tech company. Moreover, HP cannibalized its roots repeatedly, replacing established products with bold new ideas. Focusing on contribution rather than endeavor, HP morphed six times into something else, changing it leading products each decade. Such transformation is unparalleled in modern business (House, Price, 2009).
Review of Key Literature and Analysis
SWOT (Strengths, Weaknesses, Opportunities and Threats) is a tool for analyzing an organizationâ‚¬â„¢s competitive position in relation to its competitors (Ron, 2008). SWOT analysis is a general technique and a suitable application useful for diverse management functions and activities. It is very important particularly during early stages of strategic and marketing planning. The SWOT analysis on HP involves identifying and recording the strength, weakness, opportunities and threats concerning HP. The analysis classically takes account of HP capability and internal resources (strength and weakness) and external factors within the organization (opportunities and threats) as a basis for assessing core capabilities and competence of the company.
Strong brand image
Interbrand ranked HP as the 10th in the Top 100 best global brands for 2010.HP has a strong brand image and continues to expand its product portfolio into the services category. HP has a highly diversified business and a wide range of audience, which creates unique challenges and opportunities. Evolving into more of a services provider and software provider, HP innovation in hardware business is observed in its newer business environment. The brand value $26,867, a 12% increase in 2010 (interbrand, 2010).
Emerged and diversified competitors, geographical distribution continues to set pressure on the brand, as it must take part in both local and global competitions. HP is working relentlessly to unify all the part of it businesses under a unique brand platform: â‚¬Å“Letâ‚¬â„¢s Do Amazing.â‚¬Â A recent launch of HP brand campaign aims was to highlight the extent of their portfolio and instill consistency across all segments. The continuous success of the company hinges on the commitment of all the business units and an effective management and engagement of its over 300,000 employee workforces.
Great financial performance
HP was recorded to be the first IT Company in history with revenues that exceeded $100 billion after reporting revenue of $104 billion in 2007. According to IDC, HP was the only major server vendor company to gain revenue share in the EPIC/RISC Blade server market, gaining 20.8% points year over year in the fourth quarter of 2010 (to a total of 62.3% market share in 4CQ10) (streetinsider.com). HP has been occupying a leadership position in the IT world from 2006 until date. During 2006 year of intense competition between HP and IBM, HP made more revenues of US$91.7 billion, compared to IBM with revenue of US$91.4 billion and subsequently widened to US$21 billion in the year 2009.
Figure: 15. HP leads the Blade Server Market (IDC, 2011)
Table: 3. Worldwide Server Vendors Revenue (datacenter, 2011)
Vast Business Segments and Diversification
In 2010, HP had the largest and best product releases in its history ranging from printers to PCs, cloud to the data center and creating solution for business-critical systems with superdome 2. HP experienced great performance in all regional areas with growth rate of 11% in America; 7% in Europe, Africa and the Middle East; and 16% in Asia pacific and Japan (hp.com).
Over the years, the large scale of operation demonstrates the power of diversification by performing across all economic cycles. The strength of Hp resilient businesses including supplies and services, imaging and printing, personal system groups, enterprise and server helped the company preserved revenues and earnings
Figure: 16. Services Revenue 2008 to 2010 (annex bulletin)
Figure: 17. IPG Revenue 2008 to 2010 (annex bulletin)
Figure: 18. PSG Revenue 2008 to 2010 (annex bulletin)
Figure: 19. ESS Revenue 2008 to 2010 (annex bulletin)
Good management solution portfolio
Over the years, HP business has quietly developed from extensive network management solution into the leading and largest infrastructure management vendors in the world. The company has a very good and comprehensive systems management solutions portfolio, supporting strong ecosystem partners that enhance and improve HP's product offerings and providing a strong channel to marketing. The recent acquisition of strategic company called Peregrine broadened OpenView's portfolio for Hp and brought about new base of large clients (Neil, Garbani, 2011).
In 2010, Hp held the no 1 rank in the Fortune Global 500 ranking. HP is still the biggest and largest company with business segments of servers, personal computers, and printers. The competition with Hp by other Companies is intense.
Figure: 4. Global 500 Ranking (Japanfocus, 2011)
The Companywas one time in a series of debt for many years, which kept Hp on the ground from investing in different business opportunities. This affected the company businesses and slow HP down at a particular time to succeed and compete successfully.
one major problem and complaint from customers about thehardwaresupplies of HP was its touch pads. The touch pads of the notebooks of Hp like the dm3, dv series, and Envy lines needs serious improvement. These touch pads are either unreliable, finicky, or are difficult to use because of friction. In addition, mouse buttons on various HP supplied machines are said to be clumsy to use, too. Poor shelling life of HP products plagued some mainstream systems and net books.
When it comes toSoftwarethat HP provides there are also some weaknesses. Some heavysoftwareâ‚¬â„¢s were paired with slowhardware like Touch Smart.
Lack of mainframe management
HP acquisition of Peregrine completed the HPâ‚¬â„¢s portfolio and made it further diverse and complete but OpenViewâ‚¬â„¢s lack of mainframe management capabilities created several problems (Neil, Garbani, 2011).The OpenView's lack of mainframe management capabilities is a problem that affected the company overall performance.
Lack of configuration database
Another serious weakness of HP OpenView is lack of a configuration management database (CMDB) product that includes application mapping and discovery. Some of the major clients of Hp may not be patient enough to wait and may result to other suppliers, which can potentially weaken the position of the company as a strategic management vendor (Neil, Garbani, 2011). Open view was an initial name forHewlett Packardproduct family comprising ofnetworkandsystems managementproducts. Open View was later rebranded in 2007 after it was combination with theHP Software Division
New market Expansion
Hewlett-Packard a global enterprise was ranked by Fortune 500 list in 20th position after its merger with Compaq,the company expanded andbecame no1 in the world in peripherals consort and computerhardware.
Hewlett Packard has operations in over 170 countries around the world including both developed and under- developed(hp.com)
Being a global leader of computerhardware as given the company, many competitive advantages in dominating the printers market, including inkjet and laser.The company focuses and attracts consumers from any newly found markets from around the globe.
The companyis constantly competing at all level both local level and international level. It has improved its competitiveness through different strategies and policies that promote and supports free-market economies. This adds to the reasons that make HP a leading and highest supplier in the booming IT markets. The Company has a complete product portfolio.
New industry development
Hewlett-Packard Company has invested in new areas of technologies and alliances, including its Electronic Business Framework. HP extends its core computing strategy, called the Extended Enterprise, to help customers address broad opportunities in the emerging electronic marketplace and reduce the total cost of ownership of their computing environment. HP's "Extended Enterprise" computing strategy, is a sweeping vision of pervasive information systems, and a practical approach in helping companies to reach beyond corporate workgroups and IT solutions that encompass remote workgroup, business partners, suppliers, and clients. Built on HP's core competencies and strategic partnerships, the Extended Enterprise strategy leverages key related technologies and the internet to meet critical customer requirements, including delivering the industry's best service at a reduced cost of ownership (bnet.com).
HP also made a move to Web-enable all its services and products, the move place Hp in the position of the only vendor providing the breadth of solutions required within electronic businesses. These solutions ranges from management, security and measurement to enabling technologies, Internet-enabled platforms and devices, including Web appliances, Web servers, Web printers, Web instruments and scanners
High customer satisfaction
In the first quarter of 2004, HP successfully earned the No. 1 ranking position in customer satisfaction among all vendors in corporate information technology (IT) support and service. This result has demonstrated HP's excellent service in providing the best and highest level of customer satisfaction in the IT industry. "Customers ranked HP as among the best in class vendors across all categories in our Corporate IT Service and Support survey, with special distinction in the category of phone support where HP performed much better than its competitors," said Julie Perron, manager of Primary Research (Technology Business Research Inc). "HP Services' consistent performance with regards to phone support is impressive in an area where customers have become particularly demanding" (hp.com).
Increase market growth
Hewlett-Packard reported strong profits in the first fiscal year of 2010, higher revenues in its core businesses of servers, PCs and printers, showing major strength against rivals and expanding the company for further investment in other markets.
Figure: 20. Total Worldwide Annual Market Growth vs HPâ‚¬â„¢S Market Share (ITcandor, 2011)
The technology company reported 38% rise in net income for the quarter to $2.13 billion, or 80 cents a share, compared to $1.55 billion, or 55 cents a share, for the same period a year ago. Revenue for the quarter rose 13% to $28.5 billion. "Reflecting our confidence in anticipated cost reductions and share gains in key markets, HP remains well positioned for profitable growth as we continue to focus on our numerous cost initiatives and improve our market coverage." Mark Hurd, chairman and chief executive for HP (hp.com)
â‚¬Å“Clients choose HP over any other server vendor so they can move from rigid IT silos to a more flexible infrastructure,â‚¬Â said Mark Potter, senior vice president and general manager, Industry Standard Servers and Software, â‚¬Å“HP continues to lead the market by delivering server innovations that enable clients to increase IT productivity, reduce energy costs and lower operational expensesâ‚¬Â (hp.com). The fourth quarter of 2010 x86 servers market was led by Hp with 38.5% revenue share. HPâ‚¬â„¢s x86-server revenue grew approximately 34% year over year, beyond the market growth of 29%.
Expanded products and services
Revenue from HP's personal systems group, which includes business PCs, grew by 24% from a year ago to $10.8 billion; Notebook sales increased 37%, with unit shipments up 27%, while desktop revenue was up 15%.
HP's printing group and imaging saw a 4% rise year over year growth to $7.3 billion, one of HP's most profitable businesses. The enterprise storage and servers unit was 9% increase to $4.8 billion. Operating profit for HP's software business almost tripled as revenue rose to 11% from a year ago to $666 million (hp.com).
The acquisition of Opsware a data center automation specialist helped boost software profits and sales to $1.6 billion and drove growth and margin expansion.
Figure: 21. HP Quarterly IT Market Share ( ITcandor, 2011)
Competition is a threat to almost all business organizations. Both HP and IBM have gone through massive challenges in the past decade by all measures in solution. HP a hardware company has a strong services unit with competitors like Cisco, Sun, Dell, Apple and a lot of others. Occupying the leadership role, HP faces intense competition. HP took the lead of PC from Dell last year.
Figure: 22. S& P Tech index (Logichp.com, 2011)
Corporate capacities are the necessary strategies a business needs to employ to be able to succeed in the competitive business environment. Every business requires capabilities to carry out successful product offering or services. Corporate business capabilities are unique and difficult to copy by competitor. There many aspects to be consider when analysing HP core compentence to create opportunities in new arenas.
Every product HP offers its customer has value and contribution to the customer and is striving to create value for its shareholders and achieve sufficient profit to sustain growth and development. HP's vision and mission directs towards several areas, which are Market, Customer, Profit, Growth, Employee, Leadership quality, Global citizenship.
HP focuses on it Customer Loyalty, striving to create products & services of greater and highest quality and ensuring they deliver value to the customer. The high tech company understands that its success is seriously dependent on it customers loyalty and the contribution of the product to customer's success which can only be achieved by actually understanding what the customer needs are.
Past CEO of HP, Mark Hurd, was described byForbesas â‚¬Å“aggressive,â‚¬Â someone who â‚¬Å“pushes,â‚¬Â and â‚¬Å“ruthlessly efficient.â‚¬Â The reason is that he wants to win, in an intense battle for market leader with large top companies like IBM, Oracle and Cisco. Hurd was determined in making HP the top dog. Some brilliant ways Hurd applied was with cost cutting for example consolidating 85 data centers into 6, this effort eventually reduce IT costs by $1 billion and condensing 120 HP Labs experiments into 21 applied projects. Reducing the number of business applications HP runs to 3,000 from 6,000 in 2005 (information week), as well as focusing and improving on sales by creating a one-stop-shop for consumers, especially with high regard to providingefficient services.
It is not all roses at HP, as most of the middle level employees are quoted unfolding life at HP as a â‚¬Å“sweatshop.â‚¬Â Hurd expected employee to get used to the new sales-driven style. Hurd told financial analysts that the company's profits were driven by a combination of cost cutting and higher sales. "Let me be clear, our cost savings are significant and ongoingâ‚¬Â he added that the company intended to "wring out more cost" through the rest of the fiscal year of 2010. Over the years, HP had good market skills to present it products and services to the customer and generated so much profit.
Corporate Social Responsibility
Morrison described corporations as social institutes serving the society or they have no business to exist (Morrison, 2006). HP is occupying the leading role of environmental sustainability.
IT and the Environment
Executive Vice President and Chief Strategy and Technology officer, Shane Robinson said, â‚¬Å“Global citizenship is integral to success of Hpâ‚¬â„¢s business. It drives us to accept challenges and pursue solutions that are the lifeblood of continuous innovation and growth.â‚¬Â HP has the largest IT supply chain in the global supply chain, local issue takes on worldwide significant which rise the question on how far their responsibilities extended? HP strongly believes IT can change the equation for meeting the worlds need, both day and tomorrow (hp.com)
HP is making a difference on crucial issues that are very important and significant to worldwide socioeconomic progress. For example, HP is creating products and designs that are energy and resource efficient, with a more effective affordable Health care system (hp.com).
HP is providing education that makes the most of the latest technology to prepare students to succeed and for the future. HP is leading in helping to develop the set of next generation of entrepreneurs and leaders by advancing innovative uses of technology to promote and enrich teaching and learning.
The idea of "core competencesâ‚¬Â can be regarded as one of the most important business ideas that is currently shaping the business world. Prahalad and Hamel argue In their key paper of 1990, "The Core Competence of the Corporation" , that "Core Competences" are some of the very most important sources of uniqueness: things a company can do uniquely well, that no other can copy easily and quickly to affect competition (mindtool.com).
Analyst for Gartner David Cearley, said. "HP is showing a very strong core business in devices (servers, PCs, and printers) across markets and geographies," Cearley said. "Their traditional device businesses are showing significant strength against their competitors." If HP's core businesses continue to thrive, then the company would have the money it needs to pursue its goal of expanding itssoftware and services businesses."HP today is a major device company with software and services capabilities," Cearley said. "The question is whether HP can rebalance that portfolio over the years to have a stronger software and services business relative to its traditional device business" (Information week). HP to date has strong focus on reducing expenses, which is important in increasing profit margins while using the money saved to reduce prices against major competitor like Dell and others.
Hurd, boiled down his thoughts on HP in a statement at Gartner conference, into what he calls the company's three core competencies: creating solutions, creating demand for those solutions and servicing those solutions (CNNmoney.com).
He explains that: Creating solutions means coming up with the right mix of server, PCs, printing equipments and computers in other words, the right technology that customers want. Creating demand is another fancy way of saying HP needs to do a very good job of selling what the product managers and technologists have in mind. While servicing the solutions and constantly making more money for the company by offering consulting, outsourcing services and maintenance to clients (CNNmoney.com).
Executive VP and general manager of the Computer Organization, Richard E. Belluzzo, said in a statement, "HP lead the adoption of open systems and for many years, customers have validated HP's position on standards-based computing.â‚¬Â And â‚¬Å“today, our electronic business strategy leverages our core competencies, working with strategic partners to deliver open, practical solutions to help our customers extend their enterprises as never before to build profits, increase productivity and improve competitiveness. Those customers who adopted an open-systems approach are ideally positioned to leverage the power of the Internet and create the Extended Enterprise." (Bnet, 2011)
Finding and Conclusion
In conclusion, HP is a leading specialist company in manufacturing and developing computing, networking hardware, data storage, designing software and delivering services. HP has a good marketing strategy for selling it products, which include personal computing devices, enterprise servers and related storage devices. In addition, with range of diverse printers and different kinds of imaging products. HP has been successful in marketing its products to householdâ‚¬â„¢s customers, from medium to large scale businesses and enterprises directly and indirectly with online distributions to office-supply retailers and consumer electronics suppliers, including major software partners and technology vendors, which is described as â‚¬Å“Aggressive marketing.â‚¬Â
HP is known for it strong customer loyalty and mass production and continuos rise in revenue and aslo because of its ability to create and offer products and services that have meaningful contribution to the customer.
In 2010, HP grew revenue by 18% to $33.3 billion, which make up 2.1% of the world ITC market share. HP gained heavily in PC, Server, Printer, and Infrastructural Software areas. Share of peripherals market had a slight decline from 22% to 18% over the period of 2003 to 2010; PCs business had a market share growth from 12% to 14%, with intense competition from Dell, Acer and Apple. Storage Systems had a decline from 8% to 6%. HP has experienced tremedeous growth in market share in both Infrastructure Software and Outsourcing business where it has made considerable investments in R&D and acquisitions. The 2009 recession affected HP more than its competitors (ITcondor). HP has a complete product portfolio.
HP was sized to be the largest IT vendor and equally the leading ITC vendor in the Globe. Evolution of HP IT market share growth can be trace back to 2001, the major acquisitions of companies like Compaq, EDS, 3Com and Palm created the opportunities that boosted HP market shares. HPâ‚¬â„¢s revenues have since shown stronger growth through constant enhancement.
As a new CEO, step onboard the company, he will be warmed by the excellent job the great team as been doing with HP. The company has been busy consolidating acquired businesses and building revenues but there are areas of the modern market he needs to seriously address to keep ahead of the competition (ITcandor).
I have a few suggestions to the present HP board: especially to the newly elected CEO of the high tech company LÃÂ©o Apotheker. The past CEO Mark Hurd did a great job with HP after taking over from Carly Fiorina. He improved on things in many areas from employee management, aggressive marketing, customer loyalty to building revenues for the company.
Looking at HP performance last year it is clear that in the Server, Printer and Storage business HP outperformed the competition, but very sluggishness in areas like Infrastructure software and Outsourcing. My advice to HP is to provide stronger and efficient Cloud Computing serviceses through partnership with major Telecom hosters or from its own data centres. HP is gaining massively from providing and supplying Infrastructure as a Service and helping it client build their own private cloud.
The CEO, most make moves that will substain HP product portfolio, by using the acquisition of palm to create a handset brand, HP needs to compet with Apple in that area. The Company also should part take in SaaS market, maybe by acquiring an apllication specialitist to increase status from just infrastructural software supplier and most importantly,
Renacting the old HP way, Incresae mass production and Cut down unneccessary spending
Respect employees, believe in the company by employee is a sourcess factor that can lead to efficient team work and innovation
Double R&D investments and strategic partnership to create new products and offer efficent servicese
Respect and loyalty to customer is a very important focus to substain the company and keep the revenue growing.
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Logichp.com,2011. Mark Hurd is a man on a mission<http://www.logichp.com/2010/03/25/mark-hurd-is-a-man-on-a-mission/>
Pingdon.com, 2009, The money made by big tech companies like MS, Google, Apple, IBM and more
Posted inMainon April 30th, 2009 by Pingdom < http://royal.pingdom.com/2009/04/30/the-money-made-by-big-tech-companies-like-ms-google-apple-ibm-and-more/>
WIKINVEST.COM, 2010 Hewlett-Packard (HPQ)< http://www.wikinvest.com/stock/Hewlett-Packard_(HPQ)>
ANNEX BULLENTIN, 2008, Analysis of HP's Third Quarter Business Results< http://www.djurdjevic.com/Bulletins2008/17_HP_3Q.html>
Japanfocus.org, 2010, the Asia-pacific: journal focus < http://www.japanfocus.org/-Jenny-Chan/3408>
Techeye.net,2010, Asia Pacific server shipments grow in Q3
IBM leads the way< http://www.techeye.net/business/asia-pacific-server-shipments-grow-in-q3>
Annex bulletin, 2011, Analysis of Hewlett Packard's Fourth Quarter Fiscal 2010 Results
Streetinsider.com,2011, HP Outperforms Competition in Server Revenue, Shipments for 2010 < http://www.streetinsider.com/Press+Releases/HP+Outperforms+Competition+in+Server+Revenue%2C+Shipments+for+2010/6331482.html>
Mindtool.com,2011, Core Competence Analysis
Get Ahead. Stay Ahead.< http://www.mindtools.com/pages/article/newTMC_94.htm>