HP Case study analysis Essay

Hewlett Packard Company was founded in 1939 by Bill Hewlett and Dave Packard. The conjunction was incorporated in 1947 and became a public bon ton in 1957. HP is based in the United States and has its headquarters rigid in Palo Alto, California. The alliance has specialized in the bugger offment and manufacture of ad hominem computers, computer peripherals, software and hardware. The main products are personal computer hardware, information storage appliances and other related devices. HP market places its products to several(prenominal) customers as tumefyhead as corporate customers.The company has adopted both direct and online selling strategies for its products in the orbicular markets. Since its establishment, the company has encountered stiff ambition from other companies in the global markets. In the last one decade, the company has adopted several(prenominal) strategies to improve performance and create sustainable market lay out in the global scene. The merger with Compaq was established with an aim of improving the global point of the company as well as adopting repair technologies (Hewlett-Packard Development Company, L. P. 2010). HP has adopted various strategies to improve its market region in the global scene.Adoption of modern engine room has been a major success gene in the efforts to come up with place products. thither has been stiff competition in the market leading to decline in the market share for the company. The apportionment has made tremendous change to ensure its brands are pleasant in many another(prenominal) markets all over the world (Harris, 2007). External surroundings Technology in the personal computing fabrication has been very in advance(p) and this has been adopted by HP to manufacture competitive products. A team up of researchers has been hired to press out out innovative products.The company has a approximate system which integrates cultural diversity by grazeing with different force and cu stomers. The culture of the company is compatible with different national cultures as well as diversified social systems. HP employs people from different cultures to work in regions where they understand the cultural practices. Few cultural conflicts have been experient at the company. The political climate has been very good in the regions where the company has its operations. Global economic crisis of the 2007/2008 affected the performance of the company since the sales intensity level reduced by a great margin.The company is recovering from the electric shock of the economic crisis and profits have been recorded in the recent departed (Malone, 2007). Industry Analysis (Porters Framework) negociate power of emptors There is no iodin influential buyer in the industry. There are many buyers in the market this does not provide any single buyer a healthful bargaining power. Since the company markets its products to both corporate and individual customers, there are a diversif ied number of customers and in suit of clothes one customer fails, there are others to support the company (Banna, 2008). Bargaining power of suppliersSuppliers to the company are many and there is no single supplier with monopoly of providing materials to the company. This provides the company with enough control over its suppliers since prices for products are reduced. There is no dominant supplier in the market and the company has passable control over the pricing strategies adopted by the suppliers (Banna, 2008). Rivalry among competitors wet competition in the industry has resulted to rivalry among competing firms. Each company has differentiated its products to attract as many customers as possible.Use of modern technologies to develop market oriented products has been a common practice at the company and this has enabled the management to come up with better products. Rivalry among competitors in the market has resulted into price wars where companies are introducing diffe rent pricing strategies for their products (Banna, 2008). Threat of potential introduction of spic-and-span companies There is no regulation on entry of new companies in the industry and this has resulted into many companies entering the market. This has resulted into stiff competition for the accessible opportunities in the market.There are no barriers of entry to the industry and this has provided better opportunities for new investors to establish themselves in the market. The technology used in the industry is not restrictive and new companies discount access ideas and knowledge more or less proceeds of similar products. High profits made by animate companies in the industry have attracted more potential companies to invest in the industry. In addition, there are no barriers for excess capacity to divergence the industry. The potential profits in the industry have made the grownup number of competitors fail to exit the market and this has resulted into price wars (Banna , 2008).Threat of ease products Threat for convert products has been great since there are different products which can be switchd for the HP product range. There are no barriers to introducing substitute products and companies are free to come up with better alternative products in the industry. There are many substitute products in the industry and this has intensify the level of competition (Banna, 2008). Critical Success Factors (CSFs) HP has a strong brand image in the global market. The computing industry has accept that HP has developed better strategies of promoting its brand image.Brand management has been successfully been done by creating innovative technologies which provide better market position to the company. The quality of the products manufactured by the company is naughty and this has provided better opportunities to contest successfully in the global market. As the company maintains a high quality profile for its products, it has also managed to increase t he volume of output from its end product systems. The company has adopted mass production and this provides economies of scale. As the volume of production increases the cost of production decreases.The company has established strong systems of governance to manage its resources effectively. Project management strategies have been adopted to maintain high technology levels in the company. IT systems of the company have been developed to compete successfully with substitute products in the market. A strong team of research has been established to carry out market surveys for developing products which will provide a bigger market share in the current market situation and in the future (Hewlett-Packard Development Company, L. P. 2010).