For investors, the task of determining the strategic performance of a firm is important because this helps the firm to make informed decision. The situation is naturally harder for technology firms given that technology keeps changing, bringing in new concepts altogether. Companies such as Yahoo.com were once evaluated at 100 billion USD, are now a little for 4 billion. Pro investors such as Warren Buffett refused to invest in big IPO such as Facebook, stating that these firms are naturally unstable and a small bubble might crush the firm. This means that a technology depended company risk facing poor sales. Hence, in this Capstone project, we are going to be evaluating the performance of HP in light with building a given investor confidence. We are going to be
2. My Company: HP
Hewlett-Packard or shortened as HP is an American Multinational Information technology company that is located in Palo California. The company provides a variety of the hardware and software components that are related to the different consumer services. The small-and-medium-sized business (SMBs) for the close enterprises for customers and the health related sectors. The company specializes in the developing different devices, which include
Networking computer components.
Networking hardware and design software.
Personal computer hardware
Smart devices including mobile phones and tablets
Specialized devices such as processors, boards, drives and power supplies and RAM for other devices
Infrastructure set-up, configuration, and development of client Enterprise Architecture.
The IT industry, especially in hardware manufacturing is a relatively young, but a vibrant industry with still competition and almost daily innovations. The industry is headed by companies mostly from United States, HP home ground; however Chinese and other South East Asia makers such as ASUS and Samsung are providing significant competition. In the year 2002, the company partnered with the Compaq with the revenues that soared to the $118.4 billion. As well, in the same year, the company acquired 3Com whose deal closed on April 12, 2010. Also, in the same year, HP won the war to acquire 3PAR for the close to the 2.07 challenging the closest rival Dell. So far, HP has partnered with other players at company or individual level. Such merging and acquisition are an extension of several factors that we are going to detail on the product analysis.
Table 1.0 Industry Analysis
Competitive Strategy Industry analysis
Cost LeadershipGiven that the company is importing organic products from Africa and America, it will be possible to state the prices that they will be retaining at.
Product Diversification The company has traditionally centred its strategy on product diversification so as to meet other industry expectations as well, for instance producing a variety of products at an efficient and cost effective manner.
Innovation The company is using strong innovation in advertising, supply chain systems as well as packaging. However, rivalling companies listed above will also be providing the same; hence there should be a revision of the possible intervention strategies.
Growth and MergingThe company is analyzing the possibility of the merging primarily looking at the need for the growth of the market positively and inwardly. The growth of the market is centred on the need to expand the sales volume
Strategic AllianceAs part of the competition, the growth of the market naturally depends on the ability to venture inwardly in the market while considering the various strategic units involved in the growth of the market. It is also important to consider the possibility of involving other players in the market. Some of the strategies are discussed below.
Like any other I.T market, HP market has been changing progressively and lucratively with time. HP fast ventured HP fast ventured in the market in 1935, by the efforts of the David Packard who was the chief electrical engineer at the Stanford University. The company first market was the light-bulb whose temperature was dependent on the resistors. HP began targeting the resistors market, by continuously meeting and investigating various semi-conductors for over a few years, the company has majored in traitorous eight with the William Shockley to create the Fairchild Semiconductor. By 1960s, HP partnered with the Sony and Yokagawa Electric companies to help in developing several high-quality products that were a huge success in general.
By 1970s, the company had majored in business computing which later saw the redesigning the RISC technology. It began targeting the gas pumps and other ATM devices. By 1986, HP released the Program 101 device which was called the personal computer for Fiera Di Milano. The organization proceeded in making the right calculator which was widely integrated into various circuit board mechanisms.
By 1980s, HP began targeting the printers with its two devices the Inkjet and Laser Printers becoming competitive devices. Other devices were the scanner and product line which was produced as multifunctional products.
By 1990s, HP began majoring in the research and business uses to reach out to the various consumers online. The HP opened HP shopping which was an independent subsection for the sell of online and other direct consumers. So far, HP has opened up a subsidiary in selling online to direct consumers and storing to customers online which made HP to be stored online. In fact, by 1999, HP had already majored in computers and storage devices with the Agilent technologies. It also expanded its personal computer devices.
By 2005, the merger with Compaq opened to the market a new ally of strong desktops, servers, printers and laptops. It led the market with the slogan, "The Computer is Personal Again".
By 2009, HP had already introduced its first Smart phone device to the market, commonly known as iPAQ 112 Pocket PC.
In the year 2010, HP bought Palm for over 56 billion in Cash and Debt which was a close announcement that that stated clearly that HP had all the intensions for developing the iPAQ.
So far, HP has diversified its products to the Health facilities, Enterprise Architecture but it still retains Computer Device sales as central business. It primary operating systems is Windows.
3. Company News
HP is normally a big company with frequent news that affects the company on daily basis. Given its large state multinational conglomerate, it receives news on constant basis. For instance, four hours ago, HP promised to invest US $140 million to Singapore. At the opening of the new market, the Depot Close yesterday where HPE unveiled its new incubation program. The program has been a leading dispenser of the various global technologies hence; HP has realized the importance of promising technologies that help in generating various ideas into commercially viable enterprise technology solutions (Chan, 2016). The ecosystems and universities, as well as venture capital for big companies and start-up companies are the best ingredients for the Miniature Silicon valley ideas. Hence, just 4 hours ago, HP has realized the need of creating RD departments almost everywhere in the world.
On May 2nd this year, journalists affiliated to the fool.com realized key reasons that HP.Inc is better placed that Hewlett Packard enterprise, given that investors and customers see HP.Inc as convincing multinational entity. The company has realized that HP Inc is a better enterprise as compared to Hewlett Packard Enterprise hence the organization has modeled simpler business models which encourage the payment of the various value enterprises. HP is seeking to the reinvent itself in the market; hence it has realized the need for corporate branding. This is major move because this will change the stock value given that customers will learn to the associate HP with the Logo, while investors will learn that the professional aspect is the .Inc and not technically an enterprise. HP needs to look and feel big against casual rivals such as Samsung (Fortune, 2016).
Most importantly, on September 27, 2016, Meg Whitman created HP Five Years Later Mission which focused in creating new products on the market. Whitman however clarified as far as market dynamics were concerned; Hewlett Packard had cut itself into half namely HP Inc as well Hewlett Packard Enterprise. The cloud computing helps in pursuing cloud computing, data center hardware and software. This maintaining that HP will still retain the business, the best way it could. However, Whitman has been critical, in fact, he has maintained that changes affiliated to the Hewlett Packard Enterprise or HPE have encouraged the understanding of the printing market, hence make stable decision concerning the market. Hence, HP is looking forward to develop a huge market based on the situations that is being presented in relation to product sales. This is a major change, as other players for instance, Oxford Printing Press has promised to continue the printing o...
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