E-Commerce in Hewlett-Packard Company - Case Study Example

………………………………………………………………………….xxxxxx …………………………………………………………………….xxxxxx …………………………………………………………………………xxxxx ………………………………………………………………………..xxxxx @2012 E-commerce in HP.com 1. Overview of the company HP was founded in 1939 by two classmates Dave Packard and Bill Hewlett. The first product by the company was an audio oscillator which was an electronic instrument used by sound engineers. The first customer to the company was Walt Disney Studios who made a purchase of eight audio oscillators in order to develop and test an innovative sound system they for their Fantasia movie. Hewlett-Packard Company (HP) headquarters are in USA. Its corporate objectives are growth, market leadership, customer loyalty, commitment to employees and profit generation. Its shared values include agility and speed, results obtained through teamwork, high passion for its customers, contribution and achievement and respect and trust for all individuals. HP products are highly differentiated to suit the varying customer needs. Branding is high in HP as the company aims at establishing differentiated and significant presence in the market which then attracts new customer and retains existing customers. HP Company has grown with changes in technology and consumers are able to purchase HP products online through its website. This is the perfect way of attracting new customers and retaining the existing ones. A customer is able to shop for the required product at the comfort of his seat or house. 2. The important users HP is a manufacturer of technological products like computer related products like laptops and desktops, scanner, calculators among many other products. The HP Company provides for its important users through its website, and this is through the many pages available in the website for each important user to view his required page. . 3. Website usability a. Use of images, color and typography The website has employed a heavy use of images. The images of all products manufactured by the company are found in the website. For example, in the website, we find images of laptops, printers and monitors among many other products. The images of the products also have the some of the features of that particular product displayed in them. That is, the images used in the website represent the actual product in all aspects. The main aim of using images in the website is to give the consumer the actual image and the looks of each and every product produced by the company. Use of images in the company website is a method of branding where the company creates an actual image on the consumers mind. A mixture of blue and black are the main colors which have been used in the website. Blue color is a cool color and is quite attractive and appealing to the eyes. The blending of the two colors in the website makes the website look quite appealing to the customer’s eyes making them want to visit and revisit the site. The products have also been displayed in the website in their actual colors making them look real. Displaying the products by their real color and image gives the customer an overview of the actual product. The website has made use of large fonts/typography. With the wording used in the website, one does not have to strain to read the details. That is, the text used is easy to read. Large font has been used in different tabs of the website and for the different products to enhance their readability. b. Personality The website is formal, and anyone can access the site. The quality of the products is also clearly indicated in the website. The photo or image of each product is given in the website and the characteristics, and its qualities indicated below it. A customer thinking of purchasing a certain product will have the chance to analyze the qualities of the product before purchasing it. c. How the website supports branding Use of colors in the website helps to support branding. Through the use of different colors in the website, the company aims at creating a unique image of each product in the minds of customers and this will attract new customers and retain the existing ones. Displaying each product by their true images and colors acts as a differentiation strategy for the company as this is done to enhance the uniqueness of their products. d. How to tell that the website is for the important users The content is designed using texts which are easy to read through the pages. The pages in the website do not have the same layout since the layout per page depends on the content of each page. From the catalogues, one can easily tell that the website is for important users as the necessary information about the company, products and services, HP support and drivers as well as how to choose the destination for the products have been well catalogued to ease access by the important users. HP website is quite appealing, and this is through the use of images, colors and texts. The company has integrated all these as a way of providing for its important users. In general, the website usability for HP.com is simply amazing. 4. Linking and searching Linking and searching is the online grocery shopping method used in HP. This method allows consumers to purchase products online. The customer links into the website and searches for the required product and then buys it online. After online purchasing, the product is shipped to the customers address. The HP.com website is easy to navigate through different pages, and this makes linking and searching for products quite easy for both existing and new customers. 5. Shopping carts a. Product catalogue Product catalogue is the management of product information. Product catalogue in the HP Company website include the features of the product, its specifications, reviews, accessories which go hand in hand with the specified products and owner support. For example, in the laptop product catalogue, an overview of the product including its features, internal specification of the product likes operating system, memory and processors has been provided. Customer ratings and reviews, all accessories like adapters, cables among others and owner support which is about HP total care has been provided. The product catalogues are helpful as the consumer views products in a consistent way. b. Shopping list For a shopping list, a consumer does not have to register first in order to buy online. It is not a must for one to register online in order to buy online. However, it is important for regular customers to register in the company website. Through registration, the customer will provide the required information like payment methods to ease the processing of their orders. c. Checkout Check out on the displayed product is done online. The customer views the product online together with its features and the required information from the product catalogue. For HP Company, honesty and respect are core values so it makes sure that the product catalogue is true on all products. During checkouts, the consumers are expected to agree with the terms indicated in the purchase of the specified product. After ordering for a product, shipping will be done after the order has been received and processed. The shopping carts for HP.com make it easy for the customer to view products together with its features in order for him to make decisions on whether to buy online. For as long a customer is able to pay for the order, there are no limitations set when it comes to placing orders by customers. 6. Payment- card/banking order/PayPal Paypal is the common method of payment used in paying for orders in HP. It gives customers the opportunity to shop online and pay over a specified time frame with Bill Me Later service. The company also accepts Visa, Discover Network, MasterCard, Paypal Express Checkout, American Express credit cards, hpdirect.com preferred account and HP Home and HP Office Store gift cards. The fact that HP.com accepts different payment system means that it can accommodate different customers regardless of the payment method they chose. Accepting different payment methods is to attract more customers which then helps in obtaining competitive advantage. 7. Delivery methods Free shipping method is offered for qualifying orders and this usually comes as a seasonal offer. Qualifying orders include HP services, free storewide shipping, paper supplies and toner and ink supplier. Other paid delivery methods are also available in the company. These delivery methods include next business morning, next business day, standard shipping, two business days and Saturday delivery. The shipping rates depend on the shipping method chosen with the Saturday delivery being more expensive and standard shipping being the cheapest. The shipping rates are charged as per the method of shipping and the total cost of the merchandise. The different delivery methods adopted by the company are quite important to the company as it leads to a repeat customer as the customers feel as part of the company. Table 1: Shipping and delivery options Delivery type Ready-to-ship items Customizable computers (ship as soon as they are built) Physical Gift Cards Next business day (economical solution for next-business-day with afternoon delivery) Ships same day Not available Not available Next business morning (fast delivery for a few dollars more) Ships same day Not available Not available Two business days (great value, timely service) Ships same day When will it ship? Not available Standard (when time is less critical, estimated 5-7 business days) Ships within 24 hours When will it ship? Ships within 24 hrs Saturday delivery (for orders placed on Thursday or Friday) Ships same day (not available in Hawaii, certain other areas) Not available Not available Source: http://shopping2.hp.com/webapp/shopping/shipping_policy.do Table 2: Shipping rates Your Merchandise Total (excluding support packs) Standard Two Business Days Next Business Day Next Business Morning Saturday (Order On Thursday) Saturday (Order on Friday) Less than $75.00 $5.25 $11.99 $16.99 $18.99 $18.99 $23.99 $75.01 - $150.00 $11.99 $15.99 $19.99 $21.99 $21.99 $26.99 $150.01 - $250.00 $15.99 $19.99 $22.99 $24.99 $24.99 $32.99 $250.01 - $500.00 $9.99 $39.99 $44.99 $52.99 $52.99 $62.99 $500.01 - $1,000.00 $9.99 $52.99 $62.99 $72.99 $72.99 $82.99 $1,000.01 - $2,500.00 $9.99 $69.99 $79.99 $89.99 $89.99 $104.99 $2,500.01 - $4,000.00 $9.99 $99.99 $104.99 $109.99 $109.99 $124.99 $4,000.01 - $6,000.00 $159.99 $179.99 $194.99 $209.99 $209.99 $229.99 More than $6,000.01 $229.99 $279.99 $314.99 $349.99 $349.99 $399 Source: http://shopping2.hp.com/webapp/shopping/shipping_policy.do 8. Other mechanisms Order status To all customers, they should enter their phone number, and order number in the order status page in the website to check for the status of their orders. The registered users should sign in by providing their email addresses. These two methods are used as a way of enhancing security. These two tools are used when viewing HP Home and Hone Office store orders which have been placed online or via phones. The difference between home, private users, SMEs and large corporation is the volume or quantity of products ordered. They also differ in they type of products which they order with a Large corporation ordering quantity and varying types of products, unlike home and home office. Conclusion It is quite evident that the website of HP.com is highly usable and caters for all important users. The website also makes it easy for customers to link with the company staff and to search for any required product. Shopping carts, payment methods and delivery methods used by the company are quite encouraging to the customers as they are aimed at ensuring a repeat customer. The order status page makes it for customers to know the progress of their already placed orders. References Deni, Conner, 2001. "Hewlett-Packard Unveils Bevy of Internet Appliances." Network World. Greenmeier, Larry, 2000. "How HP Carves Out the Magic—Hewlett-Packard Wants to Expand Its Service Offerings into the Product-Agnostic World of E-Business." InformationWeek. HP Home and Home Office Store. Available From: http://www.shopping.hp.com/. Accessed: 6th December, 2012 Kuballa, Juliane, 2006. Key factors of successful e-commerce - what HP can learn from Dell, Munich, GRIN Publishing GmbH Qin, Zheng, 2009. Introduction to e-commerce. Springer Hyatt, Karen, Chandler, Kreta, 2003. Customer-Centered Design: A New Approach to Web Usability. Prentice Hall Professional Satterlee, Brian, 2001. 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