HEWLETT-PACKARD

By Ashish Jawadekar

Headquarters of HP

About the organization

• Hewlett-Packard is a Public Limited Company

• Founded : 1939 at Palo Alto in a Garage

• Founded by :Bill Hewlett, David Packard

• Headquarters at Palo Alto, California, U.S.

• Key people : Raymond Lane (Executive Chairman) Meg Whitman (President & CEO)

• Hewlett Packard has approximately 321,000 employees.

• Mergers and AcquisitionsHP acquired Compaq to Reduce Competition and Increase Business Operations at $25 billion on May 3 2002.

ECONOMY…

Revenue US$ 127.24 billion (2011)

Operating income US$ 9.677 billion (2011)

Net income US$ 7.074 billion (2011)

Total assets US$ 129.51 billion (2011)

Total equity US$ 38.62 billion (2011)

MARKET SHARE

17%

13%

12%11%6%

41%

PC Market Share in % of 2011

HPLenovoDellAcerASUSOthers

Mission

• Hewlett-Packard Mission Statement: • "To provide products, services and solutions of

the highest quality and deliver more value to our customers that earns their respect and loyalty."

Vision

• Hewlett-Packard Vision Statement:

"To view change in the market as an opportunity to grow; to use our profits and our ability to develop and produce innovative products, services and solutions that satisfy emerging customer needs."

Products : Printers

• Printers category:1. LaserJet printers (color and monochrome)2. ColorJet printers3. PSC/Photosmart All-in-one printers4. Photosmart printers5. HP Photosmart Express Kiosk6. HP Photosmart Studio Kiosk7. Officejet All-in-one printers8. Deskjet printers

Brand• According to a Business Week Study, HP is currently the

world's 11th most valuable brand. Since its creation, the HP Logo has remained largely the same. Because of its extreme simplicity, the logo is recognized all over the world.

• HP has successful lines of printers, scanners, digital cameras, calculators, PDAs, servers, workstation computers, and computers for home and small business use; many of the computers came from the 2002 merger with Compaq. HP today promotes itself as supplying not just hardware and software, but also a full range of services to design, implement, and support IT infrastructure.

Pc’s and Laptops• HP X-Terminal• Workstation Pc’s• HP TouchSmart PC• Personal desktops1. Compaq Presario Desktop2. HP Pavilion• Server PC’s• Business Desktops1. Advanced Series2. Elite Series

Other Products• Digital Cameras1. Photosmart2. HP E-series3. HP M-series4. HP R-series• Scanners 1. Scanjet series• Film scanners1. HP Photosmart2. HP S20• Plotters• HP 7470 2 pen• HP 7475 6 pen• External hard disk drives

PRICE• In 2003 Hewlett Packard introduced another first in pay-

per-use utility pricing by offering automated technology that can measure the percent utilization of each central processing unit (CPU) on HP Superdome servers, thereby offering significant advantages to customers during slow periods so they do not pay for processing they do not utilize.

• Hewlett seeks to design products with features and esthetics aimed specifically at consumers. It will first estimate how much consumers will pay, then design products to sell at that price.

Place• HEWLETT PACKARD COMPANY HEADQUARTERS ARE

LOCATED AT 3000 HANOVER STREET PALO ALTO CALIFORNIA.

• HP HAS SUBSIDIARIES LOCATED IN MIAMI, ONTARIO, GENEVA, TOKYO, HOUSTON, SINGAPORE, VICTORIA AND RIVONIA.

• HEWLETT PACKARD OPERATES A WORLDWIDE PROGRAM FOR INDEPENDENT SOFTWARE VENDORS, DEVELOPERS AND SYSTEM INTEGRATORS CALLED THE DEVELOPER & SOLUTION PARTNER PROGRAM (DSPP).

• THE HP WEBSITE PROVIDES A PARTNER LOCATOR SERVICE SORTED BY SMALL AND BUSINESS, HOME AND HOME OFFICE, LARGE BUSINESS ENTERPRISES, AS WELL AS TYPE OF PRODUCT NEEDED.

Promotion• HP launched a branding initiative called, “One Voice,” to better

integrate its vast line of consumer electronics and computer hardware products.

• HP uses many vehicles to tout its business solutions products and services, including a website with videos and navigation by sorted by business application.

• Key Hewlett Packard employees host blogs covering topics such as networking, servers, enterprises software and storage.

• Hewlett Packard employs a “Trade-in Program” whereby a customer can get a free quote on an old product and trade it in on eligible products.

• HP is promoting an instant $300 savings on its ISS Proliant AMD Servers.

• Hewlett Packard is offering limited time 0% financing on qualifying products and services.

Product• Hewlett Packard provides infrastructure technology, business

process outsourcing, technology support and maintenance, networking products and resources, application development and support, consulting and integration services; enterprise information technology infrastructure, and software, as well as personal computing and related access devices, imaging and printing related products and services.

• In 2007 HP introduced the TouchSmart PC, an all-in-one PC with a touch-screen display; HP also introduced a touch-screen consumer tablet PC. In 2008 In April, HP introduced a full-function, mini-notebook: the HP 2133 Mini-Note PC. designed for the education market.

• Hewlett Packard produces ProLiant, described as an affordable, entry-level rack and tower server ideal for small to medium businesses, workgroups, remote sites, and high-performance computing environments.

• HP’s product inventory also includes iPaq Glisten Smartphones, with features such as the ability to schedule meetings, email and text, send photos and manage a contact list.

• Hewlett Packard Home Networking Products such as the Linksys WRT54G2 Wireless-G router which provides a high-speed Internet connection with several computers.

• HP supports its products with tailored service packages such as the HP Care Pack designed to cost-effectively upgrade or extend a customers’ standard warranty with easy-to-buy, easy-to-use support packages. They reduce downtime risks with support levels from basic to mission critical.

People

• Hewlett Packard has approximately 321,000 employees.• Mark V. Hurd is the chairman, president and chief executive officer.• Hewlett Packard hired Davis Shirk in 2010 to run its worldwide marketing

for its business enterprise unit.• HP founders based their corporate culture on the integration and

reinforcement of critical opposites, known as the Hewlett-Packard Way - creating an environment that celebrates individualism, but at the same time one that is also wholly supportive of teamwork.

• Hewlett Packard provides a career development website to help guide its upwardly mobile employees.

• HP partners with other organizations such as InRoads and GEM to expand minority employee representation.

• Hewlett Packard provides chat, phone and email customer service options.

Physical Evidence• HPs’ “One Voice” project has a goal of developing a fresh

design to its packaging while staying on brand across thousands of product lines and dozens of packaging types.

• Hewlett Packard boasts on of the most thorough company websites online with a wealth of content ranging from an overview of products to philosophy and customer support.

• Since 1989 HP has worked to develop environmentally responsible packaging, recently the company teamed with the UC Santa Barbara Bren School of Environmental Science and Management and IoPP to create an up-to-date guideline for the electronics industry.

Process• In 1997, Hewlett Packard employed the “Hoshin”process in developing its strategic

plan. The Hoshin process is a systematic planning methodology for defining long-range key entity objectives without losing sight of day to day business measures.

• In 2002 HP divulged the supportive planning behind its planned merger with Compac including its goal of achieving a leadership position in every major segment of the information technology industry.

• Hewlett Packard has utilized Design for Supply Chain (DfSC) system, which is a systematic, repeatable process which allows HP to consider the impact of decisions: on supply chain partners, including suppliers, manufacturing and logistics service providers.

• One of CEO Mark Hurd's first acts as CEO, in flush times, was to cut 15,200 jobs (10% of the workforce), he has encouraged remaining employees to stress operational efficiency.

• Key pillars of the HP strategy include achieving meaningful innovation with speed and agility.

Channel Of Distribution

• HP Sells Their Pc’s and Laptops• HP also Distributes their Products through

Multibrand Malls and Computer Malls (like DCC).• It also has Dedicated Stores in Major Cities like

Mumbai,Delhi,Pune (at Deccan) and other major cities.

• Hp has recently closed their 2 stores and hence has lost some market share to Dell.

SWOT ANALYSIS• Strong Market Position• Prominent Brand Name Recognition • Successful Strategic Acquisitions

Strengths

• Weak Market Segment IntegrationWeaknesses

• Expanding presence in cloud computing market• Expanding portfolio of imaging and printing solutions• HP has launched several retail photo printing

solutions and servicesOpportunities

• Projected decreases in the IT markets• Hyper-competitive environment• Specifically, the company’s competitors

Threats

Thank You !!