CASE STUDY IBM vs.

Hewlett Packard

Ivana Đurović, Miloš Ostojić, Ivana Segedi, Danijela Mandić, Ilja Popović Novi Sad,2010

History

IT History

HP entered the computer market with the HP 2100 / HP 1000 series of minicomputers 1968.Super computer leadership for a ninth consecutive time. the biggest accounting project in history.HP merged with Compaq. combining organic and inorganic materials as a medium for semiconductors. As of September 2009 EDS is known as HP Enterprise Services.This was one of the biggest takeovers and acquisitions by technology giants.com domain name making it the ninth Internet.Palm. "HWP" and "CPQ".Hewlett-Packard's HP Associates division developed semiconductor devices primarily for internal use and instruments and calculators were using these devices 1960. 2009 . IBM opens its "greenest" data center in Boulder. 2005 . 28 years before it is mandated by law. to show the significance of the alliance 2006 .David Packard and Bill Hewlett established Hewlett-Packard (HP) in Packard's garage 1941. the company file for their HP ubiquitous trademark 1957.7 billion in cash. IBM defines the outlines of a new model for the IT industry 1997 – IBM coins the term „E – business“ and ignites a business revolution 2000 . The Computer is Personal Again.HP introduced the world's first handheld scientific electronic calculator 1975. 2010 .HP purchased EDS.HP and Yokogawa formed a joint venture (Yokogawa-HewlettPackard) to sell HP products in Japan 1966 . IBM offers equal pay for equal work. Inc.HP registered the HP. 11 years before the Civil Rights Act 1957 – IBM introduces FORTRAN. a combination of the two previous symbols. 2001 – IBM leads open standards movement. 1984.HP is identified as the producer of the world's first marketed.HP began its campaign. the new ticker symbol became "HPQ". massproduced personal computer 1972. 2008 . Lenovo.The trademark was first used in commerce 1954.HP had long moved from their celebrated garage on Addison in Palo Alto.3Com and HP announced that Hewlett-Packard will be acquiring 3Com for $2. 1943 – IBM promotes first woman to vice-president 1944 – IBM launches Mark I. for their work in high-temperature superconductivity 1996 – with the creation of IBM Global Services. 1939.The PC division (including Thinkpads) is sold to Chinese manufacturer. and invests $1 billion in LINUX. Colorado.com domain ever to be registered 2002. and Hewlett-Packard announced that HP will be acquiring . 2008 . IBM researchers create the world's first logic-performing computer circuit within a single molecule. the first automatic digital calculator 1953 – IBM institutes equal opportunity policy.started the 98x5 series of technical desktop computers which used a version of basic programming language which was available immediately after they were switched on.HP introduced both inkjet and laser printers for the desktop 1986.IBM delivers the world's most powerful computer to the US Department of Energyand created flexible transistors.HP partnered with Sony and the Yokogawa Electric companies in Japan to develop several high-quality products 1963. which becomes the most widely-used computer language 1964 – IBM changes computing – and modern business – with the introduction of System I360 1971 – IBM begins series of enviromental policies that set the standard worldwide 1986 – IBM’s scientists win the Nobel Prize for the Scanning Tunneling Microscope which allows scientists to image individual atoms 1987 – IBM’s scientists win again.History 1924 – IBM was formed 1935 – IBM selected to maintain Social Security records.

“ Thomas J. including computer systems. storage systems and microelectronics. Watson Sr. (founder of IBM). but it has a future that will extend beyond your lifetime and mine. MISSION STATEMENT At IBM we strive to lead in the invention. . development and manufacture of the industry’a most advaced information technologies. 1926. We translate these advanced technologies into value for our customer through our professional solutions. it has a past of which we are all proud. software. vision. services and consulting business worldwide. VALUES dedication to every client’s success innovation that matters – for our company and for the world trust and personal responsibility in all relationships STRATEGY The main strategy of IBM is to deliver their high value added services (or software) to customers through their server product. values VISION „The business of ours has a future.Mission.

STRATEGY Corporate Level: Global expansion Business Level: Related diversification Functional Level : Distribution . values MISSION STATEMENT Bridging the gap between business objectives and technical solutions to deliver better access to the information. VALUES Leadership. Integrity quality.Mission.making diversity and inclusion a conscious part of how we run our business throughout the world. vision. Good and motivated team. Customers satisfaction. VISION Differences to work across the world and diversity and inclusion will come from the conviction of every HP employee . Customer satisfaction.

HP Services ("HPS"). Global Business Services (GBS) Software Systems and Technology Global Financing HP Enterprise Storage and Servers ("ESS").Business segments Services (Global Technology Services (GTS). HP Financial Services ("HPFS"). and Corporate Investments. HP ProCurve. HP Software & Solutions. Imaging and Printing Group ("IPG"). Personal Systems Group ("PSG"). .

425 billion $10.415 billion (3.89 $109.757 billion $114.6%) with 2008) Stock value Total assets Total equity Employees 83.799 billion $ 38.552 billion Operating income Net income $17.Fact sheet 2009 Revenue $97.136 billion $9.023 billion $22.409 .72 $114.2%) 34.637 billion 399.000 Revenue growth (comparing (7.942 billion 325.012 billion $13.

47 69.647 24.57 .Cola IBM Microsoft HP 68.S.667 59.031 59.509 3 2 -4 2 U.007 23.Rank in 2009.63 Market Value 123.70 Profit 12.34 8.096 66. Coca . 2008.S.734 60.63 118. Rank 28 36 Company IBM HP Industry Software and services Technology hardware and equipment Sales 103.211 56. U. Company Brand Value 2009. 2. U.53 109.S.S. 11. % of change Country of origin 1. U.05 Assets 109. 3.

30 0.42 Technology/innovat 0.20 0.16 3 3 3 2 3 3 0.14 0.48 0.39 0.64 0.20 0.30 3.15 Rating 3 2 Score 0.40 0.39 0.13 0.SUCCESS FACTORS Success Factors Quality Financial Position Weight 0.56 0.10 1.36 0.12 ion Global Market Price Competitiveness R&D Customer Loyalty Total 0.45 Market Share 0.48 0.30 2.00 .75 4 4 4 2 4 3 0.10 0.42 0.30 Rating 3 3 Score 0.10 0.

COMPARATION ON KEY ISSUES Quality Financial Position Market Share Technology/innovation Global Market HP IBM - .

BCG matrix .

COMPETITIVE POSITIONING Hardware IBM Scope of business HP Software Core product Product portfolio Total solutions and services .

COMPETITIVE BUSINESS ARENA ACCENTURE SAP HP SERVICES SERVERS MOBILE DEVICES HARDWARE SOFTWARE DELL IBM SYSTEMS AND TECHNOLOGY INTEL FINANCING MICROSOFT .

SWOT STRENGTHS Advanced business performance management good organisational structure strategic ousorcing. mergers and acquisitions high efficient fulfilment centre flexible marketing management creative services Strong brand equity Total solutions provider Diversified product portfolio Solid market position in key segments Strong financial position WEAKNESSES OPPORTUNITIES High costs in the value chain possible acquisition issues Strong and stable economic market context sophisticated service market high individual consumption power matured internet market high level of entry barrier to the server market wireless applications Price is high in China as compared to other Product line management problems Emerging markets. Europe . particularly BRIC countries Imaging and printing businesses e-Commerce expansion Diversification Related/Unrelated THREATS Customers have low switching costs IBM has high switching costs on the core hardware High threat of substitutes Apple computers (Macs) significant growth in overall PC shipments Dell direct-sale marketing Intense competition from other PC manufacturers Slowdown in economic conditions in US.

security and more Focus on initiatives critical to business success Developed for professional and expert use Accessories for hardware products Different groups of IT products for home and business use SOLUTIONS SERVER EQUIPMENT HARDWARE NEEDS OF CUSTOMERS .CUSTOMER NEEDS AND RESPONCE TO THEM SOFTWARE CLASIFICATION OF NEEDS Solutions for management.

OPPORTUNITIES AND THREATS TODAY .

servers technology statistics. 1 (2010)  HP – acquisitions in the fields of:     hardware. data. business intelligence software Software consulitng networks . 3 (2010) HP: 7 (2008). analytics. Services mobile devices  IBM – acqusitions in the fieds of:      databases. storage.  Number of acquisitions in last years:   IBM: 14 (2008). 2 (2009). Both companies are aggressive in acquisitions. software. optimisation. 7 (2009).

MAIN ACQUISITION FIELDS .IBM .

HP .MAIN BRANDS .

BRANDING ONE STRONG BRAND MANY INDEPENDENT BRANDS .

POSSIBLE SCENARIOS AND FUTURE STEPS FOR IBM AND HP .

COMPETITIVE BUSINESS ARENA IN THE FUTURE SPECIALIZE D IBM XEROX HP TOSHIBA SOFTWARE MICROSOFT PRODUCT RECYCLING CANON ACTIVITIES ACER IBM ORACLE SERVER TECHNOLOGY HP GENERA L FUJITSU IBM ACCENTURE INTEL HP SERVICE HARDWARE DELL NOW TIME LINE LONG TERM .

. which showed slightly better results in some parts of our multi-level comparison.After all the data gathered and presented in our case study. but if we were to invest in one of them we would definitely choose the IBM. we must say that both companies showed remarkable results.

wikipedia.org/wiki/Hewlett-Packard www.com www.wikipedia.net www.com .islandnet.gartner.LINKS: www.compaq.com http://en.org/wiki/IBM http://en.hp.com www.com/~kpolsson/comphist http://en.morningstar.networkworld.org/wiki/History_of_the_Internet www.com www.wikipedia.ibm.

Medals for previous work for IBM and HP THE END .

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