About Hp company - Research Proposal Example

any’s major product lines comprise personal computing devices, enterprise servers, related storage devices, printers, and imaging products (HP 2008). The company has been declared by market research firms Gardner and IDC as the largest global seller of personal computers surpassing its closest rival Dell Inc. After having long commanded the industry, the latter has been taken over by 3.9% gap in market share. During 2006, HP generated annual sales of $91.7 billion then jumped to $104 billion the following year making it as the first information technology company to exceed the $100 billion sales mark (HP reaches 100 billion 2008).

As opposed to other competing firms in the information technology industry like Apple, HP consumers are the middle and lower income consumers who opt for more affordable products. Even in its establishment, the company has long been committed in serving these consumers who are more price-sensitive and prefers more affordable products with lesser features. The company serves households and small and medium enterprises worldwide, always tailoring its products in order to suit the evolving needs and demand of the buyers.

The success of HP can be traced to its ability to price its product more competitively in the market. It should be noted that the company’s sales have been generated by ensuring that consumers’ have an affordable choice in order to suit all their computing needs. The mere size of the company is also an advantage. It should be noted that since the business organization caters to a lot of markets worldwide, it is able to distribute it cost more efficiently through economies of scale. The large number of output that it produces in its plants allows it to distribute fixed cost thereby making its unit production cost relatively lower.

This makes it possible for the company to charge prices which are more competitive than its other rivals in the industry. The company’s reach and exposure to both industrialized and