Hp Case Study - Marketing Strategy Class
Feb 22, 2007
Executive Summary
Hewlett-Packard (HP) is one of the largest technology companies in the world. Founded in 1939, HP employs nearly 88,000 worldwide, supports 540 sales and administrative offices, and distributes to more than 120 countries. HP is a technology solutions provider to consumers, businesses and institutions globally. The company offers IT infrastructure, global services, business and home computing, imaging and printing.
The case study reflects the appraisal of HP’s high performers, internal and external problems and the growth of the company’s future. We see their sales have grown but profits have fallen $230 million short. With a slow economy on the rise HP needs to find a solution to their growth problem. A clear cut to their problem I suggested is by merging with the rival company Compaq due to their same visions and tactics and it will decrease the competition while strengthening the company’s image in business field.
I have also elaborated the merger in my recommendation analysis by explaining how HP can gain its profits and find solution to its current problem. HP split is another solution to the problem which I have breakdown in the alternative analysis. This case provides overall problems HP has with a SWOT analysis given with an alternative solution and forwarded with a recommendation plan.
Situation/SWOT Analysis
Hewlett-Packard is striving to survive the tough competition in the market growth by trying to eliminate its competitors like Dell Computer in PCs, Sun in servers and IBM in services. HP has also seen profit margins erode in its cash cow business, printing and imaging, because of increased pressure from rival businesses. Due to the aggressive management extreme makeover the companies profit is even weaker were sales growth has beaten the company’s expectation but profit has fallen off $230 million short. What needs to be done now is the company’s motto and the new CEO of HP “Carleton S. “Carly”
Executive Summary
Hewlett-Packard (HP) is one of the largest technology companies in the world. Founded in 1939, HP employs nearly 88,000 worldwide, supports 540 sales and administrative offices, and distributes to more than 120 countries. HP is a technology solutions provider to consumers, businesses and institutions globally. The company offers IT infrastructure, global services, business and home computing, imaging and printing.
The case study reflects the appraisal of HP’s high performers, internal and external problems and the growth of the company’s future. We see their sales have grown but profits have fallen $230 million short. With a slow economy on the rise HP needs to find a solution to their growth problem. A clear cut to their problem I suggested is by merging with the rival company Compaq due to their same visions and tactics and it will decrease the competition while strengthening the company’s image in business field.
I have also elaborated the merger in my recommendation analysis by explaining how HP can gain its profits and find solution to its current problem. HP split is another solution to the problem which I have breakdown in the alternative analysis. This case provides overall problems HP has with a SWOT analysis given with an alternative solution and forwarded with a recommendation plan.
Situation/SWOT Analysis
Hewlett-Packard is striving to survive the tough competition in the market growth by trying to eliminate its competitors like Dell Computer in PCs, Sun in servers and IBM in services. HP has also seen profit margins erode in its cash cow business, printing and imaging, because of increased pressure from rival businesses. Due to the aggressive management extreme makeover the companies profit is even weaker were sales growth has beaten the company’s expectation but profit has fallen off $230 million short. What needs to be done now is the company’s motto and the new CEO of HP “Carleton S. “Carly”
Cited: Cravens, D. W., Piercy, N.F. (2006). Hewlett-Packard Co. – Case 6-18. Strategic Marketing 8th Edition. McGraw Hill International Edition, p. 620 - 626. Microsoft.com. (2005). Customer Solution Case Study. Microsoft Corporation (Online). Last retrieved on February 22, 2007 from download.microsoft.com/documents/customerevidence/21147_HP_13595_final.doc Osnews.com. (2005). An analysis of hp future strategy, post Carly Fiorina. OSNews (online). Last retrieved on February 22, 2007 from http://www.osnews.com/story.php/9810/An-analysis-of-HPs-future-strategy-post-Carly-Fiorina/page1/ Wikipedia.com. (2007). Hewlett-Packard Co. Wikipedia – The free encyclopedia (online). Last retrieved on February 22, 2007 from http://en.wikipedia.org/wiki/Hewlett_Packard