HEWLETT PACKARD’S MARKETING STRATEGY

| November 13, 2016

Global competitiveness is very important as it enables companies to sustain operations in the current business environment. It results from efficiency in operations, product development, marketing, and management. In relation to consumers, marketing, sales, and customer considerations remain the most important elements in increasing the success of the firm. From a global point of view, the operations of Hewlett-Packard (HP) Company are effective, as they have enabled it to assume an elevated niche in the current market. Market surveys show that the client base is satisfied with the quality of the products provided by the company. By making innovation a mainstream factor and pursuing diversification at the same time, the company has experienced a rise in revenue and earnings.[1] Company analyses show that there is as strong demand of its products on a global scale. The current trend can be attributed to its comprehensive marketing portfolio that enables it to match the right, services, solutions and products to their clients’ unique and specific needs.

As a well-known computer distributer, HP Company has had more strengths than weaknesses. In almost all approaches, HP has been better positioned than in the past. It has been highly ranked in its ability to maintain a high cost-cut. While IBM is leading in its consulting services and its ability to assist top brass install corporate strategy, HP is focused on assisting companies on how to handle the soaring costs of maintaining and powering their tech gear. Their goal is to use software devices and other automation technologies to reduce the number of tech workers. They want to set their devices in a way they will require very little human involvement.[2]  HP has also set prices that are affordable to the customers. This puts HP at a higher competitive advantage as it has set strategies that are different from those its competitors have set.

            HP employs the approach of value chains to achieve a competitive advantage. This method encompasses the activities that work together effectively and efficiently for the organization to gain a high competitive advantage. Marketing and sales is one o the activities whereby HP has ideally done well. IBM and DELL are HP’s main competitors where DELL deals with PC and server hardware while IBM focuses on IT service provider. HP has taken up both tasks but still maintained a large cash business, especially in the production of printers that perfectly serve clients in target markets. In addition, it has a firm infrastructure where it has taken up the cost reduction measures. It has six business divisions, which are Personal system, Imaging and Printing, HP services, Software and HP Financial services, and Enterprise Storage and Servers. HP also uses advanced technology to improve its relationship with the supply base. This approach of stratification allows every department to perform market analyses that suit their target consumers.[3]

In general, the marketing mix of HP has been dynamic with considerations laid on the products, pricing strategies, promotional activities, branding, and the tailoring of products to consumers’ needs and expectations. Just to mention, their introduction of the TouchSmart PC in 2007, the touch-screen tablet in 2008, and the mini-notebook in 2009 gave them a milestone in acquiring a large market share in corporate and educational sectors. They further improved this through competitive prices that are attractive and to consumers in the targeted sectors.[4]

In conclusion, it is clear that the higher percentage in HP’s cash inflow comes from the printing business. The business generates half of the income for HP, which means that the company should relocate its investment to Imaging and Printing. HP should also incorporate the Focus and Execute strategy where they mainly concentrate on the activities that will generate more income as compared to the previous periods. However, the only way to maintain their current market share and gain more from the market is to increase personalization of services and perform more market research on stratification and emerging demands.

 

Bibliography

Fraser, Cynthia. Business Statistics for Competitive Advantage with Excel 2010: Basics, Model Building, and Cases. New York: Springer Publishing, 2012.

Packard, David, David Kirby, and Karen Lewis. The HP Way: How Bill Hewlett and I Built Our Company. New York: Collins Business Essentials, 2013.

Viardot, Eric. Successful Marketing Strategies for High-Tech Firms. Norwood: Artech House Publishing, 2014.

Zhang, Hongni. “Research Hewlett Packard through Its Value Chain”. International Journal of Business and Management 5 (8) (2010), 179-189.

[1]. Packard, David, David Kirby, and Karen Lewis. The HP Way: How Bill Hewlett and I Built Our Company (New York: Collins Business Essentials, 2013), 78.

[2]. Zhang, Hongni. “Research Hewlett Packard through Its Value Chain”. International Journal of Business and Management 5 (8) (2010), 182.

[3]. Fraser, Cynthia. Business Statistics for Competitive Advantage with Excel 2010: Basics, Model Building, and Cases (New York: Springer Publishing, 2012), 301.

[4]. Viardot, Eric. Successful Marketing Strategies for High-Tech Firms (Norwood: Artech House Publishing, 2014), 34.

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