The Company Targets Customers - Case Study Example

To Michael Hurd, CEO and President HP An Assessment of Product:HP Pavilion PC Introduction Hewlett-Packard (HP) based at Palo Alto, California, US, as we know, was by two visionaries in 1939 in a garage, and has now spread it wings spread out in 170 countries of the world . It is ranked 14th in the Fortune 500 countries and its revenue totalled 107.7 billion for the fiscal ending January 14th 2008. HP manufactures PCs, Printers, and business software. However, we will focus our study on HP’s PC division. In this report we will discuss the HP Pavilion series and how its marketing and retail network can be improved to meet our printer series. HP Bayak, HP Vectra are our special machines with higher configuration should only be targeted as hi-end Servers for companies and institutions. As a principle HP doesn’t reveal non-public product details, financial information, marketing, R &D, manufacturing and Personnel Data. We will work on whatever information the company discloses and is available in common domain of knowledge to assess our strengths, marketing mix, current strategies, current events and global information and discuss how they can be more streamlined in. In today’s world no amount of market strategising is enough, no amount of competitor’s latest strategies and innovation and we have always to remain in an ever evolving role. HP Pavilion and sister products We have chosen our Personal Computer as the product of our current study. Just for sake of recall, we make a mention of current product segmentation. HP products are divided into following segments: Notebooks and Tablet PCs, Desktops and Workstations, Gaming Systems, Printers and All-in-ones, Handheld calculators, Scanners and Fax, Digital Photography, Monitors, Servers, Blades, Storage, Softwares, Networking, Digital Presses, and Support Services. Personal Computer falls in Desktops and Workstations. The HP Pavilion PC series are priced as low as $299.99 and as high as $1299.99.The lower end PC provides general computing services and the high-end All-in-one PC is touch-enabled, with hands on entertainment experience and energy star qualified. The low-end PC is targeted at students, adults and executives, office administrator who has to surf, and carry out normal personal computing. Between these there more categories priced below $499, $400 and $ 600 and above $600. The higher ends PCs have cutting edge technology for entertainment, multi-media as a substitute for TV, and gaming. In order to encourage e-shopping from HP website we provide relaxation of 90-day period on all the products. Working The HP PC is equipped with AMD Althon XP and Intel Pentium 4 Processor. The processor is the heart of a PC and the Processor gives a high-speed computing experience making videos and music. The DDR SDRAM provides high bandwidth. Besides, the HP PCs have DVD-Writer Drive (DVD+RW/R) drive. HP PC is available in HP Pavilion Elite, HP Pavilion Slim line, HP Pavilion, Compaq Presario, HP Touchsmart brands. PCs work on Windows Vistas Basic, Premium, Home and Business configuration and loaded with Windows Vista Basic, Home Premium and Vista Ultimate and Vista Business. As far as technology is concerned we provide state-of-the-art products in conformance to the needs of an ever-demanding customer. HR Statistics HP has 400000 workers, over 400 contracted suppliers shipping over 1 million print cartridges, 110000 printers and 75000 PCs everyday. HP enjoys a place of prominence in the IT industry due to its brand presence and extensive range of computer peripheral SWOT ANALYSIS IBM Strengths of IBM: Strong global brand presence, Pioneers of PC Market, Introduced all Kinds of PCs from Mainframe to nanotechnology micro-PC, Large Multi-national Organisation, Diversified interests, Outsourcing Company and Software Company with a culture and work ethos. Very Strong R&D, Produced two Nobel Laureates Most patents than any other company. Made IBM System/360, IBM System/370 . Weaknesses : Sold the PC division to Lenovo. It was end of the era (news.bbc.co.uk ) It is behind HP in annual revenue. Oriented more towards novel ventures, Loss in reputation, Gigantic Size; Mammoth staff a liability. Lost the reputation in R &D. Dependant more on BPO and KPO Business, Loss of revenue. Missing leadership and making sporadic efforts. Opportunities : Leader in the outsourcing era, Strong brand presence, State-of- Art infrastructure all over the world, global channel partners Threat : With no main business company can lose investor confidence, can be acquired or dissolved in future. DELL Strengths: Second to HP in PC, Only online retail with number of Configurational and cost choices; continuously adding computer Peripherals to consolidate their sales. Direct retail market in only few. Stiff competition to HP. New company; easy to make management systems.Only online sales. Every product available on the Dell.com Strong 24X7 customer support. Strong leadership of . Michel Dell. Ever-growing brand value. Linux compatible PCs also Available. Always hiring new people and introducing new ideas. Only company to offer make your own PC offer. Strong business Process outsourcing Weaknesses: Relatively young in age and dominated by young executives lacks Maturity. Loses a lot of business due to non-retail activities. Believes Carrying out marketing only through the Internet and telephone. Less reputation. Needs a lot branding beyond American shores. Recently New Mexico Supreme Court allowed a class action suit against Dell on an appeal by a consumer activist (NMAG. Home).In May 2008, the Attorney General’ Office won a major law-suit that Dell indulged in fraud, false advertising, and deceptive business practices. ( www.oag.state.ny.us) Opportunities Branded PC market and gaming platforms are increasing. Dell can position itself to young customer and provide gaming platforms. Should enter software market. It should avail its retail network to Strengthen sales. Still far away from its true potential. Not entering the Software market. Threats The core activity of Dell remains the PC and Notebook market through Online retail. HP Strenghts Core IT company that literally has a role in development of every component to the modern PC. Today HP specialises in manufacture every component constituent of compatible to the PC. However, due expertise in Printing technology, the company is know more for Inkjet, Laser, All-in-one malfunction printer/scanner/faxes. HP Labs has a budget of $3.6 billion to keep HP strategically ahead in Technology. HP has been staging mergers and acquisitions from time to time thus enhancing its technology, strategic influence and development into a large organisation spread out all over the world. HP has unflinching belief in its Ethics and Compliance. The Corporate Social Responsibility of HP is a beacon of inspiration of not only IT companies and but other corporations as well. HP is synonymous with innovation quality and excellent customer support service. HP has far outgrown its American mould to grow into a global corporate identity. In a survey, conducted in India, HP is declared the best Paymaster.(Rediff.com) Weaknesses The foremost weakness that severely dented HP’s reputation was that of the case of Patricia Dunn, Chairwoman who was accused of spying on the Board members. She had to resign and some of criminal cases are still pending against her is the California Courts. This had severely dented the investor confidence in HP. Technically, HP is known more for its printing technology whereas it is multi-product manufacturing Company. The company has difficulties managing staff and channel partners around the globe. Opportunities With a strong brand position in IT technology, HP has an Opportunity to enter BPO and Internet in a big way. HP can associate With Microsoft to launch an Internet platform at least for HP computers. With its interest’s safe, HP has got the global platform to play on diversified pitches. Threats The biggest threat of competition to HP is from Dell. Besides, Dell the locally assembled PCs and down to earth Chinese market give HP to cut costs. Companies like Sony, Canon and Dell are giving fierce com- petition to HP in print technology. Results of Swot Analysis Here is the Swot analysis I carried out comparing our company with two or our main rivals IBM and Dell. Although, Dell poses us a considerable threat than IBM, is not longer a major competitor. But it is diversifying its operations, perhaps, anticipating a downturn in PC business. Thus we need to wary of be Dell and watch the operations of IBM because it is a known fact that what Dell does today, others do tomorrow. We have to keep s vigilant eye on the downturn in hardware and have to be flexible enough to change our operations. Our e-commerce is carrying out a valuable support for our retail operations and we need to over-emphasize its support until e-commerce proliferates more than real-time situation. Still customers like to see and feel the product they are buying. But to keep our leadership in the PC market, HP Pavilion has an unbeatable reputation, yet we can deliver much more value to the customer with a little more efforts. we will have to keep innovation and product differentiation , On the other hand after washing its hands off from PC by selling it to Lenovo IBM is consolidating is much more focussed on other business activities (news.bbc.co.uk ) Marketing Mix Marketing mix essentially consists of the four Ps: Product, Promotion, People and Price. HP employs all the Ps with a distinct approach of giving maximum value to the customer and keeping the investor level high with always keeping the bottom-lines booming. HP employs People without distinction of class, gender, community. It employs the best people and keep them happy through high pays and meeting the Global Citizenship Standards. With Global Citizenship, HP makes itself akin to the local socio-cultural environment. HP respects the labour and human rights, motivates people to join the environment conservation movement, realise their social responsibility thus making the HP a part of the community, where it has to sell its products. Headquartered At Palo Alto, the company operates on very efficient supply-chains making available the right inventory at the right place. Promotion: HP products are promoted through all kinds of media, targeting everyone from a student to a common man and high-ranking corporate executives. For each category of products there is the availability of a premium and non-premium product with a price differential. The products are generally promoted according to the place they have its utility. The HP Product suite of products are categorised for Home/Office, Small and Medium Enterprise, Large Enterprise, Government, Health and Education (products targeted at public welfare). The company makes all the products available at its website country-wise. Similarly, wherever the product is retailed comprehensive brochures explain their utilities, configuration and prices. People: The backbone of HP is the people who run it, the customers who buy its products, the community in which it operates, the management and most important of all its people. Even little children all over the world are targeted as future buyers of HP Pcs. Not only that the company is running a social program for providing e-tutorials children in Africa. However, HPs employees well-paid, promoted and transferred at right places according to the their abilities. In fact, HP is a pioneer of promoting in-house people to the highest echelons of power. Price: The PCs of HP are priced up-market. For those who wouldn’t like to buy a product with a lot of frills, simple products at much lower prices are also available. However, the company targets customers who are ready to shell out extra-money for a quality product and after sales service. Target Policy and Positioning of the Product: HP has always enjoyed a brand reputation for its printing devices, symbolic of a resurgent of economically powerful country of its origin—the US. HP never positions its products as one in which quality is compromised in any form. Rather it is always targeted at an upmarket executive who feels proud to work on HP PC or Lap-top. The company focuses the product through its globe wide network and international retails on the up-market customers and compatible to work on sophisticated technologies. The product is supported by good after sales service and customer support staff that can be contacted on the Internet. Conclusion and Suggestions: As of now, HP is doing well especially after the acquisition of Compaq-Presario. However, it is keeping its brand name separate. Compaq products are not allowed to be mixed with slightly elitist HP. Though HP is also transferring its manufacturing facilities to China, it is keeping management critical functions at the Palo-Alto. Founded about 80 years ago the company is indeed very protective about its brand reputation, which it has gained bit by bit and moment to moment of performance. We should target our high-cost PCs with gaming and multi-media features towards the target age of 20 to 35 years. This age-group is most hi-tech gadget aficionado rarely cringe about costs as long as they are slim stylish with r desired configurations, cutting edge technology, high performance gaming, and visual clarity and a platform that can be easily upgraded. References. The Hewlett-Packard Website, http://www.hp.com/ accessed August 20th 2008-08-24 Anonymous (2004) Chinese firm buys IBM PC business, “The BBC Website” bbc.co.uk Accessed http://news.bbc.co.uk/1/hi/business/4077579.stm Department of Law(2008)Attorney-General’s Office, The New York State Government Website, Accessed 20th August, /www.oag.state.ny.us Accessed 20th 2008http://www.oag.state.ny.us/press/2008/may/may27a_08.html Dell Decision (2008), The New Mexico Government Website /www.nmag.gov.Accessed August 20http://www.nmag.gov/Articles/newsarticle.aspx?ArticleID=451 The Dell Company Website “Dell.com http://www.dell.com/” Accessed 20th August 2008 The IBM Company Website http://www.ibm.com/ Accessed 20th August 2008 Read More