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One of the ways to improve the organization is have a good planning. HP is a large organization in the world among their competitors; therefore they need to have several strategies to maintain the reputation of the organization. HP used a lot of strategies, such as product development, diversification, merging or partnership with other company and public relation.
HP will be a well known company is because they understand the market really needs and willing to fulfill the needs. But HP also has a lot of the competitors who appear in the available market. Therefore, the product development is one of the important strategic that HP used to bring their product out of their company to the market and slowly develop to other country and become internationally well known. HP also will make research and survey on several social groups to understanding the behavior and requirements of the buyers, suppliers or even the stakeholders before their running their plan and produce a new product. HP Company always meets their customer's satisfaction. At the same time, they also keep on focus on their product quality to protect company's reputation and presentation and make sure their always have strengthen against their competitors.
Besides that, HP also realizes that to run a business is not only to earn profit for company but it also has to bring benefits to the market and peoples. Nowadays, technology is so advanced and develop well, is totally different from last time or every second, which means that the computers is one of the importance devices to people communicate together. Since it is show the important, so it must have a lot of IT Company will enter to the market. At the technology field now, HP has lots of the competitors such as Dell, Acer, Toshiba, and Asus and even is Apple. HP had realized that the only way to survive at the market is outstanding, creative, and specialty to attract the consumers.
HP had carried out diversification process to organize their product. Diversification means keep on changing a lot on their product every second, more choices and more options to be choose. For example, HP produces small laptop which called netbook to the market. This new product have success attracts a lots of the people due to the design and convenient which the size of the netbook. Besides, HP also introduced the LaserJet Printer to the market, and this printer became the company's most successful product ever. The LaserJet Printer had change the old printer printing style which slow and more ink to used. HP also develops their product to scanners, digital cameras and others.
. HP has successful lines of printers, scanners, digital cameras, calculators, PDAs, servers, workstation computers, and computers for home and small business use computers; many of the computers came from the 2002 merger with Compaq. HP today promotes itself as supplying not just hardware and software, but also a full range of services to design, implement, and support IT infrastructure. HP also builds partnership on articles and books regarding global citizenship. This partnership helped to increase the understanding of global citizenship issues are perceived by customers.
Last but not least, the public relation that HP used to build strong bonds with their customers. HP created a web site and a call center for customers. By having web site and call center, HP can easily get feedback or any complaints from customers. At the same time, there have specific people to responses to the inquiries and customer's doubt. This will help to increase the competitive advantage too.
As of 2008, Hewlett-Packard has made a total of 116 acquisitions since 1986. Its first acquisition was the F.L. Moseley Company in 1958. This move enabled HP to enter the plotter business, which was the predecessor to its printer business today. In 1989, HP purchased Apollo Computer for US$476 million, enabling HP to become the largest supplier of computer workstations. In 1995, the company bought another computer manufacturer Convex Computer for US$150 million. In 2000, HP spun off its measurement, chemical and medical businesses into an independent company named Agilent Technologies. The company's largest acquisition came in 2002, when it merged with Compaq, a personal computer manufacturer, for US$25 billion. The combined company overtook Dell for the largest share of the personal computer market worldwide in the second quarter.
Since then, stream of acquisitions strengthened HP position in the software business. The largest software company purchased during this time was Mercury Interactive for US$4.5 billion. This acquisition doubled the size of HP's software business by US$2 billion in annual revenue. The majority of companies acquired by HP are based in the United States.
5.0 Key Selection Criteria
The Development Costs
Lack of capital
Risky to invest
Looking for more investment
Partnership is encouragement to turn competitor to members
Time to Release New Product
Looking best planning
Have great estimation of time
Product process on the plan
The Knowledge Worker
Lack of knowledge and experiences workers
Promote potential worker
Willing accept older but experiences workers
The Challenges (Smart phone)
Less advantages against competitors
Lack of deeper development
Create new products
Create own smart phone but have more specialty
HP tried many strategies to improve the organization. Before that, HP was really success among their competitors, but they also had faced a lot of problems and difficulties too. Which is include the cost that needed to carry out all of the development and chances, the time limitation, the amount of the employees need and the stronger or new competitors that slowly entering the market. HP has to face all of these problems and challenges before they success in their plan and running their business in the future smoothly.
First of all, the development cost is a huge problem that may affects the selection of strategies. A company can't run business and development their product without costs and capital. Costs need to be counted before the plan is carried out. Will this plan costly and may working? Will this plan bring us profit and benefit? Therefore HP had decided to merge with Compaq to reduce the cost needed. Besides, HP also may share the technology and IT knowledge between both of the company and produce the best product enter to the market.
Nowadays, people always say the time is precise; therefore, time limit might be one of the major problems that HP has to face during the process of selecting the strategic used. In the business era, everything need to done or complete fast than their competitors. If a plan need longer period to achieve, then it will affect the production directly which slow down the production of the company and make a company lose and lost the chances. At the same time, the competitor may gain advantage during the period.
The other criteria that might affect the strategies will be lack of the professional at certain section. HP is a large company that produced technology electronic. This means that they need a lot of the professional and experienced worker to run the company. As we know this is not easy to get those worker who really excellent in this sector. Therefore, this might be one of the barriers that affect HP to carry out their strategies.
Lastly, HP had faced a big challenge now and future which is the smart phone has gain the place in the market and it may replace laptop and desktop. The larger smart phone company, Apple Company is the stronger and largest competitor to challenge HP. Nowadays technology is so advance and develop faster, so that most of the people having a mini laptop but iPhone and iPad which Apple company product had change the concept of cell phone. The Apple product is perfect enough with its design, quality of the product, convenient and multipurpose. For example, iPhone is not only a phone, but it can work like a computer, such as access to the internet, do the paperwork which use Microsoft Office and play games. It totally similar to laptop but it is small and convenient. On the others hand, HP product have nothing change and develop or evolution much specially is size of the laptop.
Based on the criteria stated above, the recommendations for HP is focus more on product diversification. Nowadays, the people will keep on looking new and advance thing, specially is IT product. The time is going every second, so the IT product also should change and develop every second as well. For example, Apple Company is a success company which develops the Mac desktop to Mac Book and now the iPhone and iPad is entering to the market. They keep the traditional of their operating system but keep changing the size of the product. At the same time, Apple Company has added more new and advance systems of the product. HP is recommended to learn from Apple Company due to the product diversification. Besides, HP also may create something new than other competitor is not produce. New fresh product will always attract people and it may increase the company reputation as well. For a company, product diversification may change their company reputation and be strengthen among the competitors. 'We live to learn, we live to change'.