Appendix

References Issues/Problems Technical

Knowledge
1-1,2 HP had revenue of $91.7billion in 2006 compared -SWOT: Strength
-RBV: Unique
to $91.4billion for IBM.
Resources
-Financial Analysis:
adequate financial
performance
1-2,3,4 World’s largest technology vendor in term of sales. -Porter’s 5 forces:
Largest company in worldwide personal computer Threat of new
entrants (economies
(PC) sales.
of scale)
-Value Chain:
marketing and sales
-Generic Strategy:
Cost Leadership
1-5,6 Widened gap between HP and Dell. -SWOT: Strength
and Threat
1-8,9 Revenues reflect increased income from HP’s -BCG matrix: Cash
Personal System Group (PSG) and Imaging & Cow
Printing Group (IPG) and higher income from its -Ansoff matrix:
Enterprise Storage & Servers segment (ESS). Market Penetration
Diversification
1-11 ,12 Acquisition of Opsware Inc and acquisition of -Grand strategies:
Market Penetration
Neoware Inc.
and diversification,
horizontal integration
2-1,2 HP’s remarkable turnaround since 2005 has been -Value Chain:
Human Resources
headed by Todd Bradley. Who refocused HP on
Management
retail distribution of computer rather than trying to - Leadership
- Marketing stategy:
defeat Dell in the internet and phone PC business.
Distribution channel

2-2 HP unable to market its PCs successfully through -SWOT: Weakness

internet and phone PC business.
2-3 Dell began for the first time to sell PCs through -SWOT: Threat
retailers-Wal-Mart and Sam’s Club
2-4,5 Dell is the main fierce competitor with limited -SWOT: Weakness
- Porter’s 5 forces:
brick-and-mortar and able to reduce cost through
intense rivalry
fewer middleman expenses. -Dell’s marketing
strategies ( Dell has a
better Value Chain)
Increasing percentages of PCs being bought -SWOT: Opportunity
3.1 -PESTEL: Social
through physical stores.
cultural.
3-3,4 Increased its worldwide market share, while Dell’s -SWOT: Strength
-Ansoff matrix:
share dipped.
Market Penetration
4-1,3 HP’s Asian-Pacific region, comprised mainly of -Value Chain:
Outbound logistic
China and India, but also including Russia and
Japan, accounted for $4.5 billion of HP total
revenue $25.5 billion for the 3 months ended April
30, 2007.
4-4 16% increased in total revenue from HP’s Asian- -Financial Analysis
Pacific region. -SWOT: Strength,
Opportunity
fastest growing geographical area for HP.
4-5 By 2011, India technology industry will exceed -PEST: Economic
-SWOT: Opportunity
$110 billion in annual revenue, up from $48.5
billion in 2006.
4-6 HP has a 21 percent market share in India, well -SWOT: Strength
-RBV: Core
ahead others competitors.
competences

4-8,9 HP has 29000 employees in India, second behind -Value Chain: strong
R&D
the US in HP workforce numbers and a huge
-Kaizen (continuous
technology research lab in Bangalore, India improvements)
 HP well known for introducing numerous -RBV: Unique
Resources
innovative products.
-Ansoff Matrix:
5-1,2 Products
Development.
-Grand Strategies:
Innovation
5-2 The company provides technology solutions to -Value chain:
Human Resource
consumers, businesses and intuitions globally and
Management.
it’s headquartered in Palo Alto, California with
approximately 156,000 employees.
5-4,5 HP is one of the world’s largest information -SWOT: Strength,
-Value Chain:
technology firms.
Technology
-RBV: Core
competencies (strong
brand name)
6 Provide different kinds of IT related products and -KSF: provide all
dimensions of IT
services to different consumers need.
solution products and
services.
-BCG Matrix
-Ansoff Matrix:
Concentrated Growth
and Concentric
Diversification
- Generic Strategic:
Differentiation
7-1,2 Up selling and cross-selling opportunities, ESS, -SWOT: Opportunity
-Value Chain:
HPS and TSG.
marketing and sales
8 Different SBUs that serve for different consumers -RBV: Unique
Resources
-KSF: wide range of
product line to serve
different consumers
9-1,2 HP services (HPS) provides information technology Value Chain:
Service
services, consulting and integration, and managed
services.
10-1,2 Software provides management software solutions -Value chain:
Operation,
including support for organization to manage their
Infrastructure and
IT infrastructure, operation, applications, and Procurement.
business process.
11-1,2,3 PSG provide commercial and consumers PCs, -Marketing Mix:
Product
workstations, handled computing devices, digital
entertainment systems.
11-6,7 In recent years, there has been a shift from typical -SWOT: Opportunity
and Threat
desktop PCs to a more mobile product line such as
-PEST: Social
notebooks.
12-2,3 IPG is moving towards more commercial and -Ansoff Matrix:
Product development
industrial printing solutions such as outdoor signage
and Market
and graphic arts business. development.
13-1,2,3 HP Financial Services supports and enhances HP’s -RBV: Core
Competencies
global product and service solutions by offering a
-Value Chain: Firm
broad range of financial management services to its Infrastructure
customers and this segment allows customers to
acquire and financial complete IT-related products
and services.
13-4,5 HP Financial Services add value to HP’s product Value Chain:
Service
packaging, allowing their customers alternative
financial solutions.
14-3,4 Corporate investments generate its revenues from -Ansoff Matrix:
Concentric
the sale of certain network infrastructure products
Diversification
such as Ethernet switch products and licensing -Grand Strategy:
licensing
specific HP technology to third parties.
15-1,2,3 HP continuous growth in sales, net earnings, and -SWOT: Strength
-Financial analysis
earnings per share.
16-1,2 HP promotes its products directly to consumers, -Value Chain:
Outbound Logistic
businesses, and through a variety of business
- Marketing
partners. Strategies: B2B,
B2C
17-2 – 17- HP’s key efforts in delivering superior products is -KSF: Those
4 continuous activities
to actively invest in research and development,
made the successes of
patent their new products, and manage their HP
-SWOT: Strength
procurement and labor expenses.
-Value chain: R&D,
Procurement, HRM
- TQM
- Kaizen
17-4,5,6 A new branding effort with its channel partners by -Marketing Mix:
New distribution
borrowing from Dell’s direct-sales marketing.
channel
Paragraph HP offers several choices to manage aging and -CSR: Indirectly
18 increase the image of
unwanted computers in order to minimize the
HP
impact on the environment. -PESTEL: Ecology
19-1,2 An increase in worldwide unit sales of PCs -SWOT: Opportunity
-PESTEL: Economy,
Social
- Porter’s 5 Forces:
Threat of New
Entrants
19-3,4,5 Only increased 3.6 percent in United State (US) and -SWOT: Threat,
Weakness
26 percent of sales worldwide from US.
- Porter’s 5 Forces:
Intense Rivalry
20-1 Technology products have short product life cycle. -SWOT: Threat

20-2,3,4 Consumers are aggressively shopping for new -SWOT: Threat,

Opportunity
products and are demanding new features and also
-PESTEL: Social
are becoming savvier in understanding technology Cultural
-Porter’s 5 Forces:
and use the Internet as a primary source for
Intense Rivalry
 research before making a technology-related
purchase.
Para 21 Sales of Apple computer (Macs) have kept pace -SWOT: Threats
- Porter’s 5 Forces:
with significant growth in overall PC shipments
Intense Rivalry
during the first quarter of 2007. Apple is one of the
fastest growing computer manufacturers. While
Microsoft’s Vista helped drive PC sales in the first
quarter of 2007, Apple was able to match the
market with stronger portable sales and an increase
in units moved through retail channels.
22-1 – 22- Intensive competition in laptop market targeting at -SWOT: Threats and
4 Opportunity
business customer segments since laptops are
-Porter 5 Forces:
priced about 10 percent higher than the industry Intense Rivalry,
Bargaining Power of
average. In laptop market, Lenovo controls about
Buyers
12% of the global corporate market, Dell Inc.
controls 19%, and HP has 16% of the market.
23-3,4 The substitute products such as ‘remanufactured’ -SWOT: Threat
-Porter 5 Forces:
or ‘refilled’ ink cartridges have been gaining
Threat of substitute
market share in the printing supply market. products
24,25 In the US, HP’s direct competitors are Canon Inc., -Porter’s 5 Forces:
Intense Rivalry
Dell Inc., and IBM.
26-1 – 26- China is one of the world’s fastest-growing -SWOT: Opportunity
4 -Ansoff Matrix:
computer markets. In 2006, computer shipments
Market Development
worldwide grew by 10%, where as in China the
growth was 21%, reaching $14 billion, making
China the second- largest computer market after the
US.
26-5,6,7 Dell announced that they are aggressively -SWOT: Threat
-Porter’s 5 Forces:
improving their global strategy by introducing a
Intense Rivalry
new computer (EC280) and will be available first in
China and then other countries such as India and
 Brazil.
27-1 – 27- In respect to market share in China, the market -SWOT: Threat,
4 Weaknesses
leaders are Lenovo and then Dell. Lenovo
-Porter’s 5 Forces:
dominates the Chinese consumer PC market and Intense Rivalry
has teamed up with Microsoft Corporation by
offering ‘pay as you go’ computer model.
27-5 – 27- China is a lucrative market in consumer PCs, -SWOT:
6 Opportunity, Threat
Lenovo, Dell, Acer and HP are aggressively
-Porter’s 5 Forces:
pushing their brands into Asia. Intense Rivalry
-Ansoff Matrix:
Market Development
and Market
Penetration
27-7 Over 60% of HP’s revenue was generated from -SWOT: Strength
-Ansoff Matrix:
outside the US.
Market Development

28-1 – 28- HP facing difficulties in penetrating Europe market. -SWOT: Weakness

4 (Lack of market
analysis
29-2,3,4 Although HP has just overtaken total revenue, -SWOT: Threat
-Porter’s 5 Forces:
market share and financial condition. However,
Intense rivalry
Dell still remain as a fierce competitors of HP, as
Dell has far dominant position in internet and phone
sales of PCs, and Dell computers are available in
retail stores such as Wal-Mart and Sam’s Clubs.
SWOT analysis
Strength
Ref Issues/Problems
1-1,2 HP had revenue of $91.7billion in
2006 compared to $91.4billion for
IBM.
1-5,6 Widened gap between HP and
Dell.
3-3,4 Increased its worldwide market
share, while Dell’s share dipped.
4-4 16% increased in total revenue
from HP’s Asian-Pacific region.
fastest growing geographical area
for HP.
4-6 HP has a 21 percent market share
in India, well ahead others
competitors.
5-4,5 HP is one of the world’s largest
information technology firms.
15- HP continuous growth in sales,
1,2,3
net earnings, and earnings per
share.
17-2 – HP’s key efforts in delivering
17-4
superior products is to actively
invest in research and
development, patent their new
products, and manage their
procurement and labor expenses.
27-7 Over 60% of HP’s revenue was
generated from outside the US.
Justification Rank
Increase in annual revenues 1
show that HP’s good brand
name and reputation.
HP is able to surpass the 9
performance of Dell.
HP is able to increase its 8
worldwide market share and
well ahead Dell market share.
Asian-Pacific region is one of 5
the strong territories of HP.
HP has a relative high market 4
share and revenues in India
market.
A very strong brand equity 2
establishing all around the
world.
A good financial performance 6
over the years makes HP more
profitable and competitive.
HP is able to provides superior 3
products and enhance products
quality to its consumers.
HP has started seeking 7
businesses and generates profits
outside the US market. As the
US market was saturated with
many competitors.
Weaknesses
Ref. Issues/ Problems
2-2 HP unable to market its PCs
successfully through internet and
phone PC business.
2-4,5 Dell is the main fierce competitorDell is getting more aggressive
with limited brick-and-mortar and
able to reduce cost through fewer able to reduce cost through
middleman expenses.
19- Only increased 3.6 percent in
3,4,5 United State (US) and 26 percent
of sales worldwide from US.
27-1 – In respect to market share in
27-4
China, the market leaders are
Lenovo and then Dell. Lenovo
dominates the Chinese consumer
PC market and has teamed up
with Microsoft Corporation by
offering ‘pay as you go’ computer
model.
28-1 – HP facing difficulties in
28-4
penetrating Europe market.
Opportunities
Ref. Issues/ Problems
3-1 Increasing percentages of PCs
being bought through physical
stores.
Justification Rank
HP less of certain competencies 3
in market its PCs through
internet and phone sales.
1
in market its PCs through the
new channel- retailers and yet
limited physical stores and
minimize middleman expenses.
HP is unable to match Dell in
these areas and not operate in
low cost.
As HP have 26 percent of sales 5
in US but only a 3.6 percent
incensement. Which indicate
that HP’s US market in not
competitive enough.
Lenovo is the market leader in 2
China and having partnership
with Microsoft in China. HP
does not team up with any
corporation for the moment and
can’t really compete with
Lenovo.
HP is lacking understanding 4
and analysis of Europe market.
Justification Rank
It is a goof opportunity that to 7
focus only the stores sales since
the preference of the market is
favor through physical stores.
4-4 16% increased in total revenue Asian-Pacific region is a fastest 3
growing geographical area and
from HP’s Asian-Pacific region.
its show an attractive market
fastest growing geographical area potential in the future.
for HP.
4-5 By 2011, India technology Opportunity as in 2011, India 2
market will have a good
industry will exceed $110 billion
revenues and market potential.
in annual revenue, up from $48.5
billion in 2006.
7-1,2 Up selling and cross-selling Increase in sales volume of 6
related products and services
opportunities, ESS, HPS and
TSG.
11-6,7 In recent years, there has been a The market are prefer mobile 8
product line such as notebooks
shift from typical desktop PCs to
rather than PCs
a more mobile product line such
as notebooks.
19-1,2 An increase in worldwide unit Its show a good market 1
potential growth rate around in
sales of PCs
the world.
20- Consumers are aggressively As today consumers are seeking 9
2,3,4 for new innovative product
shopping for new products and
features. It is a good
are demanding new features and opportunity for a innovative
company like HP to introduce
also are becoming savvier in
some something new to match
understanding technology and use the market demand.
the Internet as a primary source
for research before making a
technology-related purchase.
26-1 – China is one of the world’s It shows a superior market 4
26-4 potential in China market as
fastest-growing computer
China is one of the fastest-
markets. In 2006, computer growing computer market in the
world.
shipments worldwide grew by
10%, where as in China the
growth was 21%, reaching $14
 billion, making China the second-
largest computer market after the
US.
27-5 – China is a lucrative market in
27-6
consumer PCs, Lenovo, Dell,
Acer and HP are aggressively
pushing their brands into Asia.
Threats
Ref. Issues/ Problems
2-3 Dell began for the first time to
sell PCs through retailers-Wal-
Mart and Sam’s Club
2-4,5 Dell is the main fierce competitor Dell is able to operate at lower
with limited brick-and-mortar and
able to reduce cost through fewer
middleman expenses.
11-6,7 In recent years, there has been a
shift from typical desktop PCs to
a more mobile product line such
as notebooks.
19- Only increased 3.6 percent in
3,4,5 United State (US) and 26 percent
of sales worldwide from US.
20-1 Technology products have short
product life cycle (PLC).
20- Consumers are aggressively
2,3,4
shopping for new products and
are demanding new features and
also are becoming savvier in
A lucrative market on China 5
PCs results in many competitors
fight for the market share. it
show a market potential in the
future.
Justification Rank
Dell break its history with start 1
a new distribution channel
through retailers it makes the
competition more
competitively.
3
costs to make the price more
competitively.
Threat for HP is because HP is
focusing more on PC rather
than notebook.
As US is getting saturated and it 8
is only a 3.6 percent increased
is means a threat for HP,
because the US market is hardly
to growth anymore.
As the technology product have 11
a short PLC,
Consumers are demanding new 10
feature products which make
the old feature products hard to
sell off, at the same time
consumers are becoming more
knowledgeable about IT-related
 understanding technology and use products, uneasy for company
to charge higher prices.
the Internet as a primary source
for research before making a
technology-related purchase.
Para. 21 Sales of Apple computer (Macs) Apple is gaining market share 7
in the shipments market. It is a
have kept pace with significant
threat for HP to compete with
growth in overall PC shipments Apple, as Apple Macs has a
very strong brand name and
during the first quarter of 2007.
innovative product.
Apple is one of the fastest
growing computer manufacturers.
22-1 – Intensive competition in laptop Threat as the laptop market is 6
22-4 highly competitive and the
market targeting at business
major market share leader is
customer segments since laptops Dell. It makes HP hard to
compete in the laptop market.
are priced about 10 percent higher
than the industry average. In
laptop market, Lenovo controls
about 12% of the global corporate
market, Dell Inc. controls 19%,
and HP has 16% of the market.
23-3,4 The substitute products such as The substitute products is 9
gaining market share. It is
‘remanufactured’
uneasy for HP to race for the
or ‘refilled’ ink cartridges have printing market.
been gaining market share in the
printing supply market.
26- Dell announced that they are It will cost the overall market 7
5,6,7 more competitively thus it is a
aggressively improving their
threat to compete in China
global strategy by introducing a market.
new computer (EC280) and will
be available first in China and
then other countries such as India
and Brazil.
27-1 – In respect to market share in Threat as Lenovo has dominates 4
27-4 china market and team up with
China, the market leaders are
Microsoft, it make others
Lenovo and then Dell. Lenovo competitors hard to market
itself in China.
dominates the Chinese consumer
PC market and has teamed up
with Microsoft Corporation by
offering ‘pay as you go’ computer
model.
27-5 – China is a lucrative market in China market is becoming more 5
27-6 competitively as many company
consumer PCs, Lenovo, Dell,
had aggressively pushing their
Acer and HP are aggressively brand into Asia
pushing their brands into Asia.
29- Although HP has just overtaken Dell remain the main threat for 2
2,3,4 HP, even HP has just taken over
total revenue, market share and
the market share. With the new
financial condition. However, distribution channel Dell is able
to widen its distribution and
Dell still remain as a fierce
reach to its consumers.
competitors of HP, as Dell has far
dominant position in internet and
phone sales of PCs, and Dell
computers are available in retail
stores such as Wal-Mart and
Sam’s Clubs.

Michael Porter’s Five Forces (Intense Rivalry)

Ref. Issues/ Problems Justification Rank

2-4,5 Dell is the main fierce competitor Dell may use it cost advantage 8
with limited brick-and-mortar and to offer lower price and
able to reduce cost through fewer competitors respond may create
middleman expenses. price war.
19- Only increased 3.6 percent in Slow market growth rate will 1
3,4,5 United State (US) and 26 percent causes firms to fight for market
of sales worldwide from US. share.
20- Consumers are aggressively Consumers high expectation 9
2,3,4
shopping for new products and and become more
are demanding new features and knowledgeable indicate
also are becoming savvier in consumers can easily switch to
understanding technology and use competitors product and make
the Internet as a primary source the industry more intense.
for research before making a
technology-related purchase.
Para 21 Sales of Apple computer (Macs) Macs increasing performance 7
have kept pace with significant indicate its potential in
growth in overall PC shipments becoming a strong competitor
during the first quarter of 2007. in the IT industry and drive the
Apple is one of the fastest industry to become more
growing computer manufacturers. intense.
While Microsoft’s Vista helped
drive PC sales in the first quarter
of 2007, Apple was able to match
the market with stronger portable
sales and an increase in units
moved through retail channels.
22-1 – Intensive competition in laptop Profits margin in business 6
22-4
market targeting at business customer segments is high but
customer segments since laptops the market leader cannot
are priced about 10 percent higher dominate the market so the rest
than the industry average. In of the competitors will compete
laptop market, Lenovo controls intensely to increase their
about 12% of the global corporate market share.
market, Dell Inc. controls 19%,
and HP has 16% of the market.
24,25 In the US, HP’s direct
competitors are Canon Inc., Dell
Inc., and IBM.
26- Dell announced that they are
5,6,7
aggressively improving their
global strategy by introducing a
new computer (EC280) and will
be available first in
China and then other countries
such as India and Brazil.
27-1 – In respect to market share in
27-4
China, the market leaders are
Lenovo and then Dell. Lenovo
dominates the Chinese consumer
PC market and has teamed up
with Microsoft Corporation by
offering ‘pay as you go’ computer leader will defending for their
model.
27-5 – China is a lucrative market in
27-6
consumer PCs, Lenovo, Dell,
Acer and HP are aggressively
pushing their brands into Asia.
29- Although HP has just overtaken
2,3,4
total revenue, market share and
financial condition. However,
Dell still remain as a fierce
competitors of HP, as Dell has far
dominant position in internet and
phone sales of PCs, and Dell
computers are available in retail
stores such as Wal-Mart and
HP needs to compete with few 10
strong competitors for market
share.
Dell aggressive move will cause 5
the IT industry become more
intensive because competitors
will aggressive promoting their
brand and product in order to
defend their market share.
Lenovo and Dell had 3
established a strong foothold in
China so HP will need to
undertake heavy marketing
activities to promote its brand
while at the same time market
market shares with same effort.
The increasing number of firms 4
entering the China market will
lead to intensive competition
for the market share.
Dell is expanding its 2
distribution to retail store and
trying to grab the market shares
from retailers who focus retail
distribution.
 Sam’s Clubs.

Michael Porter’s Five Forces (Threat of New Entrants)

Ref. Issues/ Problems Justification Rank

1-2,3,4 HP is the world’s largest HP had creating barriers for the IT 1
technology vendor in term of sales industry in term of economic of
and largest company in worldwide scale, brand identity and absolute
personal computer (PC) sales. cost advantage.

19-1,2 An increase in worldwide unit The industry growth may attract 2

sales of PCs new firm to enter the industry.

Michael Porter’s Five Forces (Threat of substitutes products)

Ref Issues/ Problems Justification Rank

23-3,4 The substitute products such as
‘remanufactured’ or ‘refilled’ ink
cartridges have been gaining
market share in the printing supply
market.
The increasing substitute product 1
for printer and printing market will
increase the degree of substitution
and impose price ceiling for the
suppliers.

Michael Porter’s Five Forces (Bargaining Power of Buyers)

Ref Issues/ Problems Justification Rank

22-1 – Intensive competition in laptop The bargaining power of business 1
22-4
market targeting at business customer segments will increase
customer segments since laptops due many suppliers in the market.
are priced about 10 percent higher
than the industry average. In
laptop market, Lenovo controls
 about 12% of the global corporate
market, Dell Inc. controls 19%,
and HP has 16% of the market
RBV (Unique Resources)
Ref Issues/ Problems
1-1,2 HP had revenue of $91.7billion in
2006 compared to $91.4billion for
IBM.
5-1,2 HP well known for introducing
numerous innovative products.
8 Different SBUs that serve for
different consumers.
RBV (Core Competencies)
Ref. Issues/ Problems
4-6 HP has a 21 percent market share in
India, well ahead others competitors.
5-4,5 HP is one of the world’s largest
information technology firms.
13- HP Financial Services supports and
1,2,3
enhances HP’s global product and
service solutions by offering a broad
range of financial management
services to its customers and this
segment allows customers to acquire
Justification Rank
It shows that HP has substantial 1
financial resources to make
investments.
HP has the innovative products 2
to provide to the market
demand.
Several SBUs that create value 3
to its customers
Justification Rank
Its show that HP has a very 2
good positioning in the India
market.
HP has the largest information 1
technology firm in the world; it
shows HP has a very strong and
powerful in operating their
business.
Not all the company provide 3
this kind of service to its
customers but HP do, it makes
HP has a good services in term
of the financial services to its
customers
 and financial complete IT-related
products and services.

Corporate Social Responsible (CSR)

Ref. Issues/ Problems Justification Rank

Para. HP offers several choices to manage
18 aging and unwanted computers in
order to minimize the impact on the
environment(Indirectly increase the
image of HP)
Several activities that HP 1
organized to manage aging and
unwanted computers show its
CSR.

Ansoff Matrix (Market Development)

Ref. Issues/ Problems Justification Rank

12-2,3 IPG is moving towards more HP has development the new 4
market for its IPG.
commercial and industrial printing
solutions such as outdoor signage and
graphic arts business.
26-1 – -China is one of the world’s fastest- HP has development its market 2
26-4 to china.
growing computer markets.
-In 2006, computer shipments
worldwide grew by 10%, where as in
China the growth was 21%, reaching
$14 billion, making China the second-
largest computer market after the US.
27-5 – -China is a lucrative market in HP aggressively pushing its 3
27-6 brand into Asia market.
consumer PCs, Lenovo, Dell, Acer
and HP are aggressively pushing their
brands into Asia (Market
Development and Market Penetration)
27-7 -Over 60% of HP’s revenue was HP generate its revenue not 1
only is US market but also
 generated from outside the US
(Market Development)
Ansoff Matrix (Concentric Diversification)
Ref. Issues/ Problems
1-8,9 Revenues reflect increased income
from HP’s Personal System Group
(PSG) and Imaging & Printing Group
(IPG) and higher income from its
Enterprise Storage & Servers segment
(ESS)
Para 6
Provide different kinds of products
and services to different consumers.
14-3,4 Corporate investments generate its
revenues from the sale of certain
network infrastructure products such
as Ethernet switch products and
licensing specific HP technology to
third parties.
Ansoff Matrix (Product Development)
Ref Issues/ Problems
5-1,2 HP well known for introducing
numerous innovative products
12-2,3 IPG is moving towards more
commercial and industrial printing
solutions such as outdoor signage and
outside US market.
Justification Rank
HP not jus only focus on one 2
core business but also diversify
its business to several related
businesses in technology and
provide all dimension of IT
solution to its consumers
Several businesses that related 1
to the technology business also
provided by HP.
By using this SBU, HP has 3
diversified its businesses to
other parties.
Justification Rank
HP is a company that famous 1
in development new products
to the market.
HP concentrate on developing 2
its products to provide better
quality products or services to
its customers
 graphic arts business.

Ansoff Matrix (Market Penetration)

Ref Justification Rank

Issues/Problems
3-3,4
Increased its worldwide market share,
while Dell’s share dipped.
Para. 6
Provide different kinds of products
and services to different consumers
HP concentrates on its current 2
business and growth.
Although HP has several 1
businesses to serve different
consumers but HP also
focusing on the same market.

PESTEL Analysis

Social:

Ref Issues/Problems Justification Rank

3.1 Increasing percentages of PCs being People are more interested in 2
bought through physical stores. buying PCs through retail
outlet.
11-6,7 In recent years, there has been a shift The changes of preferences of 4
consumers towards notebook
from typical desktop PCs to a more
rather than PC
mobile product line such as
notebooks.
19-1,2 An increase in worldwide unit sales of Increasing usage of PCs 1
worldwide.
PCs
20-1 – Consumers are aggressively shopping Consumers are more aware of 3
new products
20-4 for new products and are demanding
new features.

Ecological:

Ref Issues/ Problems Justification Rank

Para HP offers several choices to manage Manage unwanted computer in 1
18 aging and unwanted computers in a more environment friendly
order to minimize the impact on the way.
environment.

Technology:

Ref Issues/Problems Justification Rank

20-1 – Technology products have short Technology products are more 2
20-4 easily obsolete.
product life cycle.

20-1 – Consumers also are becoming savvier Consumers are becoming more 1
20-4 knowledgeable in purchasing
in understanding technology and use
technology-related purchase.
the Internet as a primary source for
research before making a technology-
related purchase.

TQM

Ref Issues/Problems Justification Rank

17-2 – HP’s key efforts in delivering superior
17-4
products is to actively invest in
research and development, patent their
new products, and manage their
procurement and labor expenses.
HP is keen to provide better 1
products by doing research and
development, have better
management on procurement
and labor expenses to be able
to deliver superior product.
This is to provide competitive
advantage for HP.

Kaizen

Ref Issues/Problems Justification Rank

4-8,9 HP has 29000 employees in India, Continuous improvement in 2
India market. The
second behind the US in HP
improvements include market
workforce numbers and a huge share, workforce and
technology lab.
technology research lab in Bangalore,
India.
17-2 – HP’s key efforts in delivering superior
17-4
products is to actively invest in
research and development, patent their
new products, and manage their
procurement and labor expenses.
HP is keen to provide better 1
products by doing research and
development, have better
management on procurement
and labor expenses to be able
to deliver superior product.
This is to provide competitive
advantage for HP.

Value Chain Analysis

Primary activities:

Operations

Ref Issues/ Problem Justification Rank

10-1,2 Software provides management HP operates its business like a 1
chain of activities to provides
software solutions including support
all IT solution to its customers
for organization to manage their IT
infrastructure, operation, applications,
and business process.

Outbound logistic

Ref Issues/ Problem Justification Rank

4-1,3 HP’s Asian-Pacific region, comprised Wide distribution of HP’s 1

product that accounted for
mainly of China and India, but also
large amount of revenue.
including Russia and Japan, accounted
for $4.5 billion of HP total revenue
$25.5 billion for the 3 months ended
April 30, 2007.
16-1,2 HP promotes its products directly to Effective distribution channels 2
to reach variety of business
consumers, businesses, and through a
partners.
variety of business partners.
Marketing and Sales

Ref Issues/Problems Justification Rank

1-2,3,4 World’s largest technology vendor in Able to make itself it the 1
world’s largest in PCs sales.
term of sales. Largest company in
worldwide personal computer (PC)
sales.
7-1,2 Up selling and cross-selling Well to market its different 2
SBUs and create sales volume
opportunities, ESS, HPS and TSG.

Service

Ref Issues/ Problem Justification Rank

9-1,2 HP services (HPS) provides
information technology services,
consulting and integration, and
managed services.
13-4,5 HP Financial Services add value to
HP’s product packaging, allowing
their customers alternative financial
solutions.
Provides different kinds of after 1
sales services to its customers
and enhance its value.
This additional services that 2
provided by HP has enhance
their value and increase the
sales as the customers get can
the alternative financial solution
if they wish too.

Supportive activities:

Firm infrastructure

Ref Issues/ Problems Justification Rank

10-1,2 Software provides management
software solutions including support
for organization to manage their IT
infrastructure, operation, applications,
and business process.
13- HP Financial Services supports and
1,2,3
enhances HP’s global product and
Its show that HP organization 1
structure is inter-links one with
another and provides support
activities to its core business.
This special control system has 2
solved the consumers’
problems if they are facing
 service solutions by offering a broad financial problems.
range of financial management
services to its customers and this
segment allows customers to acquire
and financial complete IT-related
products and services.

Human Resource Management

Ref Issues/ Problems Justification Rank

2-1,2 HP’s remarkable turnaround since Good leadership by Todd 1

Bradley to refocus HP’s retail
2005 has been headed by Todd
distribution.
Bradley. Who refocused HP on retail
distribution of computer rather than
trying to defeat Dell in the internet and
phone PC business.
5-2 The company provides technology The ability of HP to manage its 2
significant increasing in labor
solutions to consumers, businesses and
forces with superior
intuitions globally and it’s performance in the industry.
headquartered in Palo Alto, California
with approximately 156,000
employees.

Technology, Research and Development

Ref Issues/ Problems Justification Rank

4-9 Huge technology research lab in A place for HP to create more 3

innovative products
Bangalore, India.
17-2 – HP’s key efforts in delivering superior Investment in research and 2
17-4 development to be able to
products is to actively invest in
produce superior products
research and development, patent their
 new products, and manage their
procurement and labor expenses.

5-4,5 HP is one of the world’s largest HP has good reputation in the 1

IT firms.
information technology firms.

Procurement

Ref Issues/ Problems Justification Rank

10-1,2 Software provides management With the several activities HP 2
does it can help to lower down
software solutions including support
the cost.
for organization to manage their IT
infrastructure, operation, applications,
and business process.
17-2 – HP’s key efforts in delivering superior HP can save the cost of inputs 1
17-4 materials.
products is to actively invest in
research and development, patent their
new products, and manage their
procurement and labor expenses.

Boston Consulting Group (BCG)

Ref Issues/ Problems Justification Rank

1-8,9 Revenues reflect increased income PSG, IPG and ESS represent 2
the cash cow of the business.
from HP’s Personal System Group
(PSG) and Imaging & Printing
Group (IPG) and higher income
from its Enterprise Storage &
Servers segment (ESS).
Paragraph Provide different kinds of products Several businesses that serve 1
6 to14 HP’s consumers represent
and services to different consumers.
each SBU and each business
portfolio.
TOWS analysis:

Strength Opportunity

1. HP had revenue of $91.7billion in 2006 1. Increasing percentages of PCs being

compared to $91.4billion for IBM.
2. Widened gap between HP and Dell.
3. Increased its worldwide market share,
while Dell’s share dipped.
4. 16% increased in total revenue from
HP’s Asian-Pacific region. Fastest
growing geographical area for HP.
5. HP has a 21 percent market share in
India, well ahead others competitors.
6. HP is one of the world’s largest
information technology firms.
7. HP continuous growth in sales, net
earnings, and earnings per share.
8. HP’s key efforts in delivering superior
products is to actively invest in research
and development, patent their new
products, and manage their procurement
and labor expenses.
9. Over 60% of HP’s revenue was
generated from outside the US.
Strength / Opportunity
bought through physical stores.
2. 16% increased in total revenue from HP’s
Asian-Pacific region. Fastest growing
geographical area for HP.
3. By 2011, India technology industry will
exceed $110 billion in annual revenue, up
from $48.5 billion in 2006.
4. Up selling and cross-selling opportunities,
ESS, HPS and TSG.
5. In recent years, there has been a shift from
typical desktop PCs to a more mobile
product line such as notebooks.
6. An increase in worldwide unit sales of PCs.
7. Consumers are aggressively shopping for
new products and are demanding new
features and also are becoming savvier in
understanding technology and use the
Internet as a primary source for research
before making a technology-related
purchase.
8. China is one of the world’s fastest-growing
computer markets. In 2006, computer
shipments worldwide grew by 10%, where
as in China the growth was 21%, reaching
$14 billion, making China the second-
largest computer market after the US
9. China is a lucrative market in consumer
PCs

1. Continues to focus on the India market as the market share and the potential market can
be match. Good sign in growing in the future. (S4, S5, S6 and Q2, Q3 )
2. Focus on the physical stores sales to get the PCs sales. (S1 and Q1, Q6)
3. Consider to invest in China market as the market is one of the fastest growing area and
huge profits can be generated from there. (S7, S8 and Q8, Q9)
4. Design the new features and increase in the product line such as notebook. (S7, S8 and
Q5)
 Strength
1. HP had revenue of $91.7billion in 2006
compared to $91.4billion for IBM.
2. Widened gap between HP and Dell.
3. Increased its worldwide market share,
while Dell’s share dipped.
4. 16% increased in total revenue from
HP’s Asian-Pacific region. Fastest
growing geographical area for HP.
5. HP has a 21 percent market share in
India, well ahead others competitors.
6. HP is one of the world’s largest
information technology firms.
7. HP continuous growth in sales, net
earnings, and earnings per share.
8. HP’s key efforts in delivering superior
products is to actively invest in research
and development, patent their new
products, and manage their procurement
and labor expenses.
9. Over 60% of HP’s revenue was
generated from outside the US.
Threat
1. Dell began for the first time to sell PCs
through retailers-Wal-Mart and Sam’s
Club.
2. Dell is the main fierce competitor with
limited brick-and-mortar and able to reduce
cost through fewer middleman expenses.
3. Only increased 3.6 percent in United State
(US) and 26 percent of sales worldwide
from US.
4. Technology products have short product
life cycle (PLC).
5. Consumers are aggressively shopping for
new products and are demanding new
features and also are becoming savvier in
understanding technology and use the
Internet as a primary source for research
before making a technology-related
purchase.
6. Sales of Apple computer (Macs) have kept
pace with significant growth in overall PC
shipment during the first quarter of 2007.
7. Intensive competition in laptop market
targeting at business customer segments
since laptops are priced about 10 percent
higher than the industry average. In laptop
market, Lenovo controls about 12% of the
global corporate market, Dell Inc. controls
19%, and HP has 16% of the market.
8. The substitute products such as
‘remanufactured’ or ‘refilled’ ink cartridges
have been gaining market share in the
printing supply market.
9. Dell announced that they are aggressively
improving their global strategy by
introducing a new computer (EC280) and
will be available first in China and then
other countries such as India and Brazil.
10. In respect to market share in China, the
market leaders are Lenovo and then Dell.
Lenovo dominates the Chinese consumer
PC market and has teamed up with
Microsoft Corporation by offering ‘pay as
 you go’ computer model.
11. China is a lucrative market in consumer
PCs, Lenovo, Dell, Acer and HP are
aggressively pushing their brands into Asia.
12. Although HP has just overtaken total
revenue, market share and financial
condition. However, Dell still remain as a
fierce competitors of HP, as Dell has far
dominant position in internet and phone
sales of PCs, and Dell computers are
available in retail stores such as Wal-Mart
and Sam’s Clubs.
Strength / Threat

1. HP needs to minimize the unnecessary cost in order to operate at low cost as compare to
Dell. (T2)
2. Dell has widen his distribute channel through retails stores and far dominant phone and
internet sales as compare to HP. Thus HP needs to invest and increase its direct
marketing channel (S7 and T1, T12)
3. HP needs to analyses the China market before making any investment. A form of
partnership strategy is needed in order to compete in China market. (S7, S8 and T10,
S11 )
4. Invest in the laptop business customer segment since it can earn 10 percent more than
average and HP has the capabilities to do so. (S1, S6, S7, S8 and T7)

Weakness Threat

1. HP unable to market its PCs
successfully through internet and phone
PC business.
2. Dell is the main fierce competitor with
limited brick-and-mortar and able to
reduce cost through fewer middleman
expenses.
3. Only increased 3.6 percent in United
State (US) and 26 percent of sales
worldwide from US.
4. In respect to market share in China, the
market leaders are Lenovo and then
Dell. Lenovo dominates the Chinese
consumer PC market and has teamed up
with Microsoft Corporation by offering
‘pay as you go’ computer model.
1. Dell began for the first time to sell PCs
through retailers-Wal-Mart and Sam’s
Club.
2. Dell is the main fierce competitor with
limited brick-and-mortar and able to reduce
cost through fewer middleman expenses.
3. Only increased 3.6 percent in United State
(US) and 26 percent of sales worldwide
from US.
4. Technology products have short product
life cycle (PLC).
5. Consumers are aggressively shopping for
new products and are demanding new
features and also are becoming savvier in
understanding technology and use the
Internet as a primary source for research
5. HP facing difficulties in penetrating before making a technology-related
Europe market. purchase.
6. Sales of Apple computer (Macs) have kept
pace with significant growth in overall PC
shipment during the first quarter of 2007.
7. Intensive competition in laptop market
targeting at business customer segments
since laptops are priced about 10 percent
higher than the industry average. In laptop
market, Lenovo controls about 12% of the
global corporate market, Dell Inc. controls
19%, and HP has 16% of the market.
8. The substitute products such as
‘remanufactured’ or ‘refilled’ ink cartridges
have been gaining market share in the
printing supply market.
9. Dell announced that they are aggressively
improving their global strategy by
introducing a new computer (EC280) and
will be available first in China and then
other countries such as India and Brazil.
10. In respect to market share in China, the
market leaders are Lenovo and then Dell.
Lenovo dominates the Chinese consumer
PC market and has teamed up with
Microsoft Corporation by offering ‘pay as
you go’ computer model.
11. China is a lucrative market in consumer
PCs, Lenovo, Dell, Acer and HP are
aggressively pushing their brands into Asia.
12. Although HP has just overtaken total
revenue, market share and financial
condition. However, Dell still remain as a
fierce competitors of HP, as Dell has far
dominant position in internet and phone
sales of PCs, and Dell computers are
available in retail stores such as Wal-Mart
and Sam’s Clubs.

Weakness / Threat

1. HP needs to invest in his phone and internet sales, because HP still far away from Dell.
(W1 and T12)
2. HP needs to look at where are the areas can lower down the operating cost in order to
 operate at the lowest cost. (W2 and T2)
3. HP is advice to look at any form of strategies such as joint venture or strategy alliance to
better position itself in China market. (W4 and T10, T12)

Weakness Opportunity

1. HP unable to market its PCs 1. Increasing percentages of PCs being

successfully through internet and phone
PC business.
2. Dell is the main fierce competitor with
limited brick-and-mortar and able to
reduce cost through fewer middleman
expenses.
3. Only increased 3.6 percent in United
State (US) and 26 percent of sales
worldwide from US.
4. In respect to market share in China, the
market leaders are Lenovo and then
Dell. Lenovo dominates the Chinese
consumer PC market and has teamed up
with Microsoft Corporation by offering
‘pay as you go’ computer model.
5. HP facing difficulties in penetrating
Europe market.
bought through physical stores.
2. 16% increased in total revenue from HP’s
Asian-Pacific region. Fastest growing
geographical area for HP.
3. By 2011, India technology industry will
exceed $110 billion in annual revenue, up
from $48.5 billion in 2006.
4. Up selling and cross-selling opportunities,
ESS, HPS and TSG.
5. In recent years, there has been a shift from
typical desktop PCs to a more mobile
product line such as notebooks.
6. An increase in worldwide unit sales of PCs.
7. Consumers are aggressively shopping for
new products and are demanding new
features and also are becoming savvier in
understanding technology and use the
Internet as a primary source for research
before making a technology-related
purchase.
8. China is one of the world’s fastest-growing
computer markets. In 2006, computer
shipments worldwide grew by 10%, where
as in China the growth was 21%, reaching
$14 billion, making China the second-
largest computer market after the US
9. China is a lucrative market in consumer
PCs

Weakness / Opportunity

1. Careful examine before make any serious investment in China. (W4 and O8, O9)
2. HP needs to continue seeking business outside from the US market. (W3 and Q2, Q6,
O8, O9)