Windows 8 Tablet to Enhance HP Market Position - Essay Example

Manufacture Windows 8 Tablet to enhance HP’s market position With the increased drive towards windows 8 tablets manufacturing by most of HP’s main competitors, HP cannot afford to ignore the market trend. The company must manufacture its branded windows 8 tablets to maintain their superiority in the PC manufacturing. Background statement/introduction: The trend in the PC ownership has indicated that majority of people tend to move towards owning tablets more than any laptops. In a study conducted by Display Search, it was revealed that tablets purchase worldwide will hit 416 million, 23 million more than regular laptop’s 393 millions by the year 2017. This trend is supported by the increasing demand of the tablets from the emerging markets around the world. In the study, many people revealed their preference to tablets to be based on its user-friendly nature, classiness and convenience. According to Richard Shim, an analyst and a member of the team who conducted the research, consumers continuously shift towards mobile computing against the traditional notebook, a trend that has picked up well in mature markets around the world. For example, tablet PCs are expected to grow by annual average of 28% in the next 5 years within the mature markets of United States, Japan, and West Europe. The challenge for HP is to ensure it manufacture tablets that are sleek and trendy, which will resonate with the increasingly trendy consumer. In a market where internet business giants such as Google and Microsoft have taken by storm through their flagship tablets in the market, it is logical to note that any failure by the HP to embrace the tablet market will deal a big blow to its market share. The strategy is to ensure the company maintains or improve its 16% market share around the global consumption of PC usage. Problem statement: While many tablet manufacturers have concentrated their tablet market share within the established or rather mature markets, HP has not involved itself in the manufacturing of tablets despite the growing trend in the tablet PC usage around the world. Companies such as Apple, Samsung, Microsoft, and Google have consolidated their market share in the tablet PC manufacturing, leaving HP still struggling with its notebook PCs. A point to note, however, is that many of these companies only focus their products towards mature markets. This trend leaves the gap in the emerging markets, which are expected to grow in equal measure in the projected year. HP can take a leap into the emerging markets, which seem to be catching up with the established markets in the tablet PC usage on a daily basis. However, this should not mean that HP needs to ignore the mature markets, which sets trends for the emerging markets. The company, however, can develop cheap but classy tablets to match the buying trends in emerging markets. A proper study, however, will be needed to ensure a pricing criteria, design and consumption trend is established. The goal of this study is to establish the consumption trend, both in the mature as well as emerging markets. Methodology: The research will largely be an internet based, and phone calls. This study will involve web searches on what customers of competitors say on online forums, design online questionnaires, as well as feedback forms for HP notebook users. This strategy will ensure that information about the established and emerging markets are defined, the customers’ behaviours, and the future business prospects of both markets. This research will include acquiring of products information, analysis of the existing brands, profiling of the users psychology, and geographical information. Document Specification: Project description Windows 8 application has been used by different firms in enhancing both their mobile and tablet applications. This has been the case through combination with other apps to suite needs of the company. For instance, PageSuite is one of the firms that have integrated Windows 8 with other applications to suite needs of the company. The company collaborated with Microsoft in launching two newspapers and three magazines, with use of Windows 8 on tablets. This move has been picked by companies such as Samsung, Nokia, HTC devices and Microsoft Surface tablet. Together with Apple, these companies have established excellent marketing and distribution channels with competitive products that lay a platform for innovations. Currently, HP has been expanding its market share in networking businesses and high margin server. However, the company is likely to be overtaken by other firms that have entered the new market niche; therefore expanding their market share. Most of the company’s COEs have focused on high margin businesses that involve integration areas, mobility, data security and applications. These products are expected to increase revenues for the company by 20% by 2016. However, the company forecasts revenues to decline to 11% by 2013. In this financial year, operating margins fell by 0.6% to 9.2%. HP has initiated the project of manufacture of Windows8 tablets for the purpose of enhancing its market position. This move has been initiated by the company following the move by other companies such as Microsoft to manufacture and sell windows8 tablets. The move by other companies has proved to be a market threat to HP, which realized that if no action is taken, its market share is declining gradually. These tablets can be used by various companies and business organization, provided that appropriate integration of windows8 and other apps. Market Feasibility Currently, HP has shown gradual and impressive growth in the enterprise server, networking and storage in the market. The leading market for HP products has been China and there are high expectations that the upcoming windows8 tablet by the company will win many customers in the country. The company experienced a drop in market share but this was accompanied by growth of revenues. The company has also become the leading vendor in smart managed switches. The company has been able to overcome competition posed by other companies such as Motorola in the wireless LAN market. It is expected that the company’s new product will restore the company back to its former market position it had enjoyed before. The company intends to engage in mobile tablet PC to follow suite after the introduction of Microsoft’s Surface tablet. The company does not want to risk being left out in this new development in the market. The company expects to face stiff competition from Microsoft that launched its touch friendly windows 8 operating system in New York. Hp is set to launch its tablet running Windows 8 January, 2013. The company’s windows 8 tablet will be targeting enterprises rather than consumers. Competitors like Microsoft are set to manufacture and sell initial run of tablets based on Windows RT, the ARM-optimized variant of Windows 8. HP is also set to face competition from companies like Dell, Asus and Lenovo that are set to roll out new consumer tablets running Windows 8, google’s Android mobile operating system and windows RT. To edge out this competition, the company made sue that it had a product with tablet functionality ready during the official launch of Windows 8 by Microsoft. The company also showcased the Envy X2, an ultrabook running windows 8 during a forum that was held in San Francisco. The company will also ensure that it has incorporated unique features in its tablet o attract more customers. This includes incorporating a removable slate that can serve the purpose of a laptop’s screen when attached. Projected sales are expected to be moderate both in units and revenues. This is because the tablet will be introduced in the market at a time when other companies have already introduced theirs. There is also a likelihood that HP’s tablet will not be priced like other consumer tablets such as Google-Asus Nexus7, Apple’s iPad Mini and Amazon Kindle Fire this is because the HP’s tablet has not yet been proven in the consumer category as a true tablet. Several experts are required to provide labour during the manufacture and marketing of these tablets. The company must hire personnel that will design how the tablets will look like. Appearance of a product can be of crucial importance, especially in a market that has stiff completion. These tablets must be designed in a way that they look appealing to the customers. Features to differentiate it from other tablets must also be integrated. These include features such as attractive colours and embedding the company’s trade mark on it. It must also be small in size and not bulky to ensure portability. Software engineers and other computer experts must also be involved in designing and installing the windows 8 software into the tablets. There must also be a group of technician that will assemble and put together all the hardware to come up with a complete tablet. After this production process, the company must come up with a sales and marketing team to market its products. Since this is a new product being introduced in the market by an existing company, HP must carry out intensive marketing. This is to ensure that the product cuts across all areas in the market and reach as many potential customers as possible. Marketing can be done by advertisements through media such as television to reach many regions; therefore an expansion in the market. The sales team can be sent out to other countries across the United States, Japan and West Europe. These are some of the regions that the company needs to venture into to expand its market position since it is already well established in China. Economic Feasibility This section involves analyzing costs incurred in manufacturing a product and benefits to be realized from the sale of these products. Read More