Isu strategi HP

 Divisi komputing HP yang terus merugi

 Compaq kurang dapat bersaing dengan IBM dan dell walaupun sudah mengakuisisi DEC,
sedangkan bisnis home pc (presario) sudah dalam tahap yang sangat jenuh

 Karena mengalami kerugian. Compaq ingin merekonstrukturisasi perusahaan nya dengan biaya
yang besar ( $700 - $900 juta)

Pre-Merge :
Compaq Life Cycle

 Branding competition : Compaq was a reference and standard leader.

 Market maintenance and development of new markets (2000: 58% revenues outside U.S.)

 Large Market Share.

 Product/service emphasis (strategic partnerships with Microsoft, Oracle…).

 Client base stable.

 Distributing dividends (1998).

 In 2000, emphasis on cost reduction and increase in gross margin.

 Competitor pressure

 Scope scale sales (ie, pocket computers)

Pre Merge :
Compaq Produtcs

 PC, (desktop and portable) – Manufacturing and selling

 Servers – Manufacturing, selling plus services

 Pocket Computer (handheld computer) –

 Manufacturing and selling

 Storage – manufacturing, selling, services and on-line storage

Pre Merge :
HP Life Cycle
 HP known as a brand name for printers and ink

 Held number 1 position in a number of areas, i.e Storage Area Network (SAN),RAID and disk
storage systems

 Stable client base

 Competitor pressure

Pre Merge
HP Competitor

 IBM

- Servers, PC’s, storage and IT services

 Dell

- PC’s

 Canon

- Printers, fax, copiers, optical equipment

 Compaq

- Pc’s, Servers, Pocket computers

CPM analysis

Weight HP Dell IBM

Critical Succes Factor Rating Score Rating Score Rating Score

Financial Position 0.13 4 0.52 4 0.52 3 0.39

Market Advertising 0.13 4 0.48 3 0.36 3 0.36

R&D 0.17 4 0.68 3 0.51 2 0.34

Costumer Loyality 0.05 2 0.1 2 0.1 4 0.2

Quality Products 0.1 3 0.3 3 0.3 4 0.4

Price Competition 0.1 3 0.3 2 0.2 2 0.2

Management 0.05 2 0.1 3 0.15 2 0.1

Globe Expression 0.1 3 0.3 4 0.4 4 0.4

Market Share 0.08 2 0.16 3 0.24 3 0.24

Variety of Produts 0.1 3 0.3 4 0.4 3 0.3

3.24 3.18 2.93

IFE analysis
strength weight rating weighted score

technology advancement 0.14 3 0.42

branding obvius and easily recognizied 0.05 4 0.2

technology research labs 0.09 3 0.27

costumer loyality 0.05 3 0.15

international trade 0.06 3 0.18

world's leading brand 0.05 3 0.15

product line extension 0.07 4 0.28

larger IT firm (application industry) 0.1 3 0.3

engineering design 0.05 3 0.15

weakness

unit vendor shipment 0.08 2 0.16

lack of- in house management consulting division 0.07 2 0.14

decrasing R & D budget 0.1 1 0.1

not using online selling 0.09 2 0.18

1 2.68

SWOT ANALYSIS
 Threats Competitive Enviroment Economic Downturn

Employee Morale Organizational

Culture Conflict

Opportunities Innovation Overlaping Management

Integration Overlaping Product Line

Customer Loyalty

Market Share

Stable Growth

Cost Savings

Strengths Weakness

Post Merger :
HPQ Strategic Profile Design Factor

 Sustainability – The new HP must retain and grab additional market share

 Uniqueness – Largest I.T company in the world

 Value added – Merger must demonstrate success

 Enhancement – Increased product line

 Flexibilty – Adaptation to market forces

 Stability – Retention of customer/client base

Post Merger :
HPQ Strategic Profile Design Factor Conts

 Fit – Was the merger of HP/Compaq a good strategic move? Only time will tell!!!!
 Performance – Results of merger to be monitored over a long period of time, i.e: 12 – 24 months and
continuously benchmarked against competitors

 Consistency – HP must demonstrate in new corporate structure

 Stretch – CEO and Chairman Fiorina to lead merged company aggressively

Post Merge :
Conclution HP Strategy

 Balance between the innovation/being first to the market and pure, raw, low cost.

 Maintaining both company brands and strength.

 Adjust and optimize product line.

 Enhance high-end Service.