LIST OF CONTENTS

1.EXECUTIVE SUMMARY..................................................................................2 2. INTRODUCTION...............................................................................................5 2.1 INDUSTRY OVERVIEW...............................................................................6 2.2 COMPANY OVERVIEW..............................................................................18 3. PROJECT PROFILE........................................................................................29 4. OBJECTIVE OF STUDY.................................................................................32 5. RESEARCH METHODOLOGY.....................................................................34 6. OBSERVATION AND ANALYSIS.................................................................37 7. FINDINGS..........................................................................................................60 8. RECOMMENDATIONS AND CONCLUSIONS..........................................67 9. LEARNING OUTCOMES...............................................................................71 10. REFERENCES................................................................................................73 11. ANNEXURE....................................................................................................75

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1.EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY
The high-tech industry has seen unprecedented consolidation over the past five years as globalization trends intensify and the sector matures. In addition to pursuing an innovative organic growth strategy, HP has maintained its competitive position with aggressive merger and acquisition initiatives acquiring such market leaders as Compaq, Voodoo-PC, Peregrine, Mercury Interactive and Opsware. With many of HP's products and services already occupying leading positions in their respective markets, the company sought to build customer loyalty by ensuring synergies gained from its M&A activity benefited its customers. In many important ways, HP's sales organization is the front line in achieving its growth goals providing the main communication channel to its customers. Hewlett-Packard (HP) has now overtaken IBM as the number one IT vendor for Enterprise customers. One of the significant drivers of HP's success has been its focus on improving customer loyalty. By proactively managing elements of the business relationship in an effort to improve customer loyalty, HP account managers have found their customer base expanded and uncovered larger and more strategic opportunities as well. A key program in raising HP's customer loyalty scores is a customer relationship development and growth initiative started couple of years ago called the Relationship Assessment Process (RAP). At its foundation, RAP is managed through the Satmetrix for Account Management solution (SAM), which enables companies to create actionable customer loyalty programs. Satmetrix for Account Management includes flexible, Voice-of-the-Customer technology that makes it easy for HP's sales organization to collect customer feedback on a global scale. HP sales use RAP results to explore and act on customer satisfaction, loyalty and other important customer relationship dimensions. I carried out my project concerning “Relationship Assessment Program and IPG Enterprise Customer Survey for HP”, to assess the existing level of relationship between HP and its Top Accounts. Based on the feedback from these accounts, I identified top 5 areas of improvement, which can result in their better relationship with HP. The project was carried out throughout India either through Telephonic, Web or Face-to-face
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interview. My study particularly involved finding out importance of the factors that drives their businesses and hence evaluate the performance of each satisfaction driver. In the case of IPG Enterprise Customer Survey, I conducted a Blind telephonic Survey in which I was interested in learning about the experience of the customers with their Printer Manufacturer’s Services and their Support Capabilities. This project has generated new customer insights to build stronger, more valuable and profitable customer relationships.

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2.INTRODUCTION

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INTRODUCTION
The computer software and services industry is a highly dynamic and growing industry. Its phenomenal growth offers great opportunities for economic growth and development. However, it has a relatively short history which is especially true when considered outside of the United States expansion. Such a short history makes determining patterns of future growth particularly difficult, including patterns of where future growth will be located. Despite the high growth rates and dynamic shifts in the fortunes of new and existing players, paradoxically much of the way it has been shaped in developed countries, over recent years, has been by way of constraints and barriers to growth (this is set to continue). However, it is these constraints in developed countries which provide remarkable opportunities for developing countries to participate in this high growth, high value-added industry, which is so pivotal to the knowledge based economies of the twenty-first century. The internationalization of computer software and services activity came late compared with the manufacturing industry and many other service activities. Only hardware manufacturers served international markets in the period up to the mid-1970s. However, by the end of the 1980s, the international spread in the coverage of the industry had taken off. Over recent years, much has been made of the relocation and new investment in computer services mainly to developing countries, which nonetheless represent significant repositories of scientific and technical capabilities. Such moves have long been heralded and are now starting to take effect. This process, in part, reflects the “hollowing out” of such service activity by redirecting not just routine activities overseas, as has often occurred in manufacturing, but also key research, design, programming and maintenance work. The most cited example of a developing country that has expanded its software industry is that of India.

2.1 INDUSTRY OVERWIEW

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The information technology boom may have begun in the 1990’s and we have seen the IT industry, grow to be one of the most lucrative industries. IT companies around the world have become global and undeniably one of the richest sectors in the world. The invention of the WWW and internet aided the growth of computer technology and after the demand and use of computers began increasing after the 1990’s. The computer industry (hardware and software) has grown by leaps and bounds at an unprecedented rate.

LIST OF GLOBAL PLAYERS
Table 1 : List of IT Companies S. No. 1 2 3 4 5 6 7 8 9 10 COMPANIES HP IBM Microsoft Corporation Google Dell SAP Symantec Apple Yahoo Oracle Corporation

The North American market holds the top spot in IT spend. Even with the economic slowdown this market is forecasted to be the biggest IT spender accounting for around 41% of global IT trend, i.e., $1.2 trillion. The largest and most profitable of IT companies are located in the United States.

GLOBAL HUMAN CAPITAL
In recent years there has been significant change in the way labor is pooled across the globe. The influences of technology and growth have effectively caused industry leaders to have to change their focus from the brute force of labor (factor of production of traditional Economics) to the actual quality of the workers available globally (Global Outsourcing). This has produced a shift in tactics for those who manage Human Resources. It is now pertinent to devise strategies to
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develop the working population by educating them and developing their technological skills so that they can contribute to the organization requirements adequately. High mobility of workers globally (The knowledge or technical workers), wage differentials across countries, borderless business models and cultural fusion problems are some issues involved in HCM. One of the biggest temptations for North American businesses has been to send jobs overseas. The trend is picking up, no one willing to miss the boat (all most 50% cost reduction in many industries). With recent university graduates in developing nations earning wages anywhere from a fifth to a tenth of an American worker, all kinds of work can be sent out at incredibly cheap rates. The absence of gender bias has encouraged many women to enter the IT industry. According to a recent Nasscom study, the men-women ratio in the Indian IT industry currently stands at 76:24, a ratio which is expected to be 65:35 this year.

GLOBAL SOURCING TRENDS
Worldwide technology products and related services sector spends are estimated to have grown at 8.3 per cent to reach USD 1.7 trillion in 2007. IDC estimates that in 2008-09, the worldwide IT market growth will be lower at about 6.5-7.0 per cent, mainly due to the economic slowdown in the US and elsewhere. IT-BPO services grew at an above-sector-average rate of nearly 8 per cent and remained the largest category, accounting for an increasing share of the worldwide technology sector revenue aggregate. Outsourcing continued to be the primary growth driver, sustained by gradual shifts in regional spending patterns – with increasing traction in Europe and Asia Pacific offsetting a marginal decline in share of the Americas. IT spending in the BRIC countries - Brazil, Russia, India, and China – is expected to grow by 12 per cent in 2009, reaching USD 117 billion. Underlying this steady growth in services spends is the increasing adoption and continued evolution of the global sourcing supply-chain. Global sourcing of technology related services is estimated to have grown by about 26% to reach USD 100 billion in 2010.
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Green IT is expected to be an important highlight during 2009. According to the Green IT Survey conducted by IDC, over 50 per cent consider suppliers’ greenness when buying IT, almost 80 per cent think the importance of greenness as an IT buying consideration is growing, and over one-third have policies that favor green vendors. 2009 will see the introduction of green products (energy-efficient, space-efficient, materials efficient, regulatory compliant) that will create meaningful differentiation and move market share.

INDIAN SCENARIO
In India, the software boom started somewhere in the late 1990s. Most of the Indian IT companies at that moment offered only limited services such as the banking and the engineering software. The business product boom started with the emergence of Y2K problem, when a large number of skilled personnel were required to fulfill the mammoth database-correction demand in order to cope up with the advent of the new millennium. The profile of the Indian IT Services has been undergoing a change in the last few years, partly as it moves up the value chain and partly as a response to the market dynamics. Ten years ago, most US companies would not even consider outsourcing some of their IT projects to outside vendors. Now, ten years later, a vast majority of US companies use the professional services of Indian Software engineers in some manner, through large, medium or small companies or through individuals recruited directly.

TIMELINE OF INDIAN IT INDUSTRY
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1968: The Tata industrial conglomerate forms software services unit Tata Consultancy Services. Mid-1970s: IBM exits India. Import duties of 150 percent or more mean that VCRs cost $3,000 and TVs cost $6,000. Wipro starts to create India's first homegrown PC. 1991: National financial crisis causes government to introduce major reforms.
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1993: A group of IT leaders determines plan for IT industry. Professor Deepak Phatak predicts India's IT output will hit $100 billion by 2010. "Everyone thought that sounded crazy, so we changed it to $50 billion by 2008," he said. The latter figure is on track.

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1994: Telecom liberalized. 1995: TCS determines that its CasePac tool developed for IBM can be used to scan software for Y2K problems. An industry is born. 1999: Y2K contracts pile into India. 2002: Indian companies expand hiring. Massive layoffs in US 2003: Led by service conglomerates such as Wipro and Infosys, India becomes a primary destination for offshore outsourcing as foreign companies seek to lower cost

The evolution of the IT & ITES industry took place in four phases as under: • PHASE-1:

In the first phase of evolution of the ITES industry in India, many MNCs established captive units in India for customer support and transaction processing. General Electric Capital Services (now Genpact) was the first MNC to pioneer ITES in India when it opened an Indian-based international call centre in 1997 to perform tasks such as money collection, credit-card servicing, and data management. Other multinationals followed, establishing their own captive whollyowned offshore facilities. These included British Airways (World Network Services), HSBC and Swissair. • PHASE-2:

In the second phase, third-party units were set up in India by MNCs (for outsourcing activities), non-resident Indians (NRIs), Indian independents, and Indian IT companies. Established software services such as Infosys, Wipro and Satyam ventured into the ITES business in 2002 by establishing subsidiaries. Quite a few of these third-party start-ups were small ventures with 50100 seats (workers), and they generally focused on low-skill, routine activities, competing primarily on the basis of cost. More developed IT outsourcing firms tended to move towards higher value-added products competing to a greater extent on specialized talent.

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PHASE-3:

The third phase of evolution of ITES industry in India has been characterized by the increasing trend towards geographical dispersion of activities, mergers & acquisitions (M&A) have also taken place within the industry within this phase. Industry observers reported 574 M&As’ in 2003, and 353 in 2004. With this process, many smaller ITES companies found it difficult to survive, and the M&A activity has continued. Going forward, competing small and mediumsized firms with complementary skills are likely to merge their operations to compete with larger global firms. • PHASE-4:

In the current and fourth phase of evolution of the ITES industry in India, there is an increasing trend towards Indian companies acquiring small to medium-size businesses in overseas locations. These foreign acquisitions mark a contrast to the practice of foreign MNCs setting up BPO units in India to take advantage of the lower costs here. Also, these acquisitions are probably in the nature of a market-entry strategy. There is also the growing trend of niche players in industry verticals or specific business processes setting up BPO businesses. Many of these players have had long experience in the domestic market and are now offering offshore BPO services. The Indian IT sector has gone through a lot since the end of the September 2008 quarter. The quarter gone by has seen some positives but a lot of negatives for the sector. On the positive side, the quarter saw the completion of 3 notable acquisitions: US$ 678 million all cash Axon acquisition by HCL Technologies outbidding Infosys Technologies, US$ 515 million all cash Citigroup Global Services (CGSL), the Indian captive BPO of Citi acquisition by TCS and US$ 127 million all cash Citi Technology Services acquisition by Wipro Whereas the Axon acquisition strengthened the SAP consulting practice of HCL Technologies, the TCS acquisition ensured assured business of US$ 2.5 billion over 9 year and the Wipro's acquisition assured revenues of US$ 500 million over 6 years. The negatives has been the uncertainty regarding the future IT spent, pricing pressure, the Satyam Computer debacle, the appreciation of the US dollar

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against the Euro, Pound Sterling and Australian Dollar. The US dollar has appreciated by 20% against the Pound Sterling, 18% against the Australian Dollar and 2% against Euro. The Satyam debacle had shaken the confidence of the global clients on Indian IT. Though, the reactions are mixed regarding the impact on the debacle on Indian IT, the event has left a scar on the Indian IT. Managements of all IT Companies have showed their concerns on the IT spent and indecisiveness on big deals. A recent report of deal signings has shown that there has been a marked fall in the contract value of deals signed in the second half of 2008. However, on the positive side, the share of Indian vendors has increased. However, the environment is deteriorating. For the quarter ended December 2008, on a sequential basis, the consolidated operating revenues of 54 sector companies taken together grew 3% at Rs 30563 crore backed rupee depreciation benefit of 10-12% however marred by cross currency movement impacting about 6-8% and negative to flattish volume growth on the back of lower number of working days. This quarter saw the impact of dip in realizations. Of the total operating revenues the top 4 companies contributed 72%. The operating margins improved 70bps at 24.6% aided by rupee depreciation and cost rationalization measures. The operating profit for quarter grew 6% at Rs 7515 crore. The other income for the quarter was down 31% at Rs 30 crore on the back of mark to market losses. Interest cost for the quarter was down 13% at Rs 227 crore and depreciation/amortization charge was up 6% at Rs 931 crore. The tax provision including current tax, deferred tax and fringe benefit tax was up 1% at Rs 873 crore with effective tax rate down 70bps at 13.7% and the consolidated net profit grew 7% at Rs 6445 crore with top 4 companies contributing 80%.

CURRENT INDIAN SCENARIO
The phenomenal growth of the Indian IT and ITES-BPO sector has had a perceptible multiplier effect on the Indian economy as a whole. In addition to the direct positive impact on National Income, the sector has grown to become the biggest employment generator, and has spawned the mushrooming of several ancillary industries such as transportation, real estate and catering, and has created a rising class of young consumers with high disposable incomes, triggered a rise in direct-tax collections and propelled an increase in consumer spending.
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As a proportion of national GDP, the IT-BPO sector revenues have grown from 5.2 per cent in 2006- 07 to an estimated 5.5 per cent in 2007-08. The outlook for Indian IT-BPO remains bright, and the sector is well on track to achieve its aspired target of US$ 60 billion in export revenues and US$ 73 - 75 billion in overall software and services revenues by 2010.

Graph 1: Indian It Exports and Domestic Revenue Growth

SOURCE: NASSCOM

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Table 2 : Indian IT-BPO Industry Sector-wise Revenue Break-up

SOURCE: NASSCOM

Indian IT-BPO grew by 12 per cent in FY2009 to reach USD 71.7 billion in aggregate revenue. Software and services exports (includes exports of IT services, BPO, Engineering Services and R&D and Software products) reached USD 47 billion, contributing nearly 66 per cent to the overall IT-BPO revenue aggregate. IT-BPO exports (including hardware exports) reached USD 47.3 billion in FY2009 as against USD 40.9 billion in FY2008, a growth of 16 per cent. While the US (60 per cent) and the UK (19 per cent) remained the largest IT-BPO export markets in FY2008, the industry footprint is steadily expanding to other geographies - with exports to Continental Europe in particular growing at a CAGR of more than 51 per cent over FY2004-2008. The industry’s vertical market exposure is well diversified across several mature and emerging sectors. Banking, Financial
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Services and Insurance (BFSI) remained the largest vertical market for Indian IT-BPO exports, followed by Hi-tech/Telecom which together accounted for 61 per cent of the Indian IT-BPO exports in FY2008. In FY2009, domestic market (including hardware) grew at nearly 19 per cent in INR terms to reach INR 1,113 billion (USD 24.3 billion); domestic software and services market reached INR 572 billion (USD 12.5 billion).

CONTRIBUTION TO GDP
As a proportion of national GDP, the sector revenues have grown from 1.2 per cent in FY1998 to an estimated 5.8 per cent in FY2009. Net value-added by this sector, to the economy, is estimated at 3.5-4.1 per cent for FY2009. Table3: Percentage Contribution To GDP By IT Sector YEAR 1998 1999 2000 2001 GDP 1.2 1.4 1.8 2.6
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2002 2003 2004 2005 2006 2007 2008 2009
SOURCE: NASSCOM

2.8 3.2 3.6 4.1 4.8 5.2 5.5 5.8

Graph2: Percentage Contribution To GDP By IT Sector

EMPLOYMENT
The total IT employment is expected to reach 2.2 million mark in 2009. The indirect employment attributed by the sector is estimated to about 8.0 million in year 2009. This translates to the creation of about 11 million job opportunities attributed to the growth of this sector. Table4: Employment Generated By IT Sector In Millions
YEAR 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
SOURCE: NASSCOM

EMPLOYMENT 0.19 0.23 0.28 0.43 0.52 0.67 0.83 1.05 1.29 1.63 2 2.2

Graph3: Employment Generated By IT Sector In Millions
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NASSCOM released the performance review of FY2008-09 and taking a two year view to factor in the volatile environment, estimates the Indian IT industry to grow at 15% CAGR to achieve exports revenues of US$ 60-62 billion by FY2011. Earlier, NASSCOM had earlier estimated achieving revenues of US$ 60 billion by end of FY2010 itself. Uncertain economic environment is expected to prevail and the World growth is projected to fall 0.5% in 2009, lowest since 60 years, but Nasscom expects the world economy to recover with a 3% in 2010. Software and Services export revenues is estimated to grow over 16-17% to reach US$ 47 billion in FY09. BPO exports are estimated to grow by 17.5% to be US$ 12.8 billion; IT Services exports are estimated to grow by 16.5% to be US$ 26.9 billion and IT Products and Engineering Services is estimated to grow by 14.4% to be US$ 7.3 billion. India's domestic IT-BPO market is estimated to cross Rs 111,000 crore in FY2009 at nearly 20% growth rate. Hardware is estimated to grow by 17% to be Rs 54,070 crore; IT Services is estimated to grow by 20% to be Rs 38,020 crore; Software Products is estimated to grow by 15% to be Rs 10330 crore and BPO is estimated to grow by 40% to be Rs 8,870 crore. Over a 4-year period (FY04-FY08), Continental Europe is estimated to grow 51.4% as against an industry growth rate of 33.3% whereas in the same period, US share has come down from 68.2% to 60% of the industry revenues. Nasscom indicated that '2008-09 has been challenging for economies across the globe, however the Indian IT-BPO industry has exhibited a balanced growth. We have seen Europe, Asia Pacific and rest of the world grow more than US, reaffirming geographical diversification as an encouraging trend for this industry. In the last year we have seen an increase in the global footprint of the Indian industry, which now has over 400 delivery centers across 52 countries. This strategy of geographical diversification will also help the industry take forward its competitive edge. In the next 20-24 months, we see a strong focus by organizations on productivity, benchmarking, and enhanced operational efficiencies. From a customers' point of

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view, the focus will remain on consolidation, integration and regulation – all of which will drive newer business opportunities for the industry.

2.2 COMPANY PROFILE
HEWLETT-PACKARD COMPANY
HP was incorporated in 1947 under the laws of the State of California as the successor to a partnership founded in 1939 by William R. Hewlett and David Packard. In May 2002 HP acquired Compaq Computer Corporation, which significantly expanded the breadth and depth of HP’s product offerings, increased overall scale and reach, drove substantial improvements in cost structure and generally improved competitive position.

I. BUSINESS
HP is a leading global provider of products, technologies, software, solutions and services to individual consumers, small and medium sized businesses (‘‘SMBs’’), large enterprises, including the public and education sectors. HP’s offerings span:
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Personal computing and other access devices Imaging and printing-related products and services Enterprise information technology infrastructure, including enterprise storage and server technology, enterprise system and network management software, and Multi-vendor customer services, including technology support and maintenance, consulting and integration and managed services

HP Products and Services; Segment Information HP is organized into five business segments: • • •

Technology Solutions Group (‘‘TSG’’) Personal Systems Group (‘‘PSG’’) Imaging and Printing Group (‘‘IPG’’) HP Financial Services (‘‘HPFS’’)
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Corporate Investments.

1. Technology Solutions Group (‘‘TSG’’)

TSG provides servers, storage, software and information technology (‘‘IT’’) services that enable enterprise and midmarket business customers to better manage their current IT environments and transform them into a business enabler. Given the solution sale approach across HP’s enterprise offerings, and in order to capitalize on up-selling and cross-selling opportunities, Enterprise Storage and Servers (‘‘ESS’’), HP Services (‘‘HPS’’) and Software are structured beneath TSG. TSG products help accelerate growth, minimize risk and reduce costs to optimize the business outcomes of customers’ IT investments. Companies around the globe leverage HP’s infrastructure solutions to deploy next generation data centers and address business challenges ranging from compliance to business continuity. TSG’s modular IT systems and services are primarily standards-based and feature differentiated technologies in areas including power and cooling, unified management, security, virtualization and automation. Each of the three business segments within TSG is described in detail below.
a. Enterprise Storage and Servers (‘‘ESS’’)

The server market continues to shift towards standards-based architectures as proprietary hardware and operating systems are replaced by industry standard server platforms that typically offer compelling price and performance advantages by leveraging standards-based operating systems and microprocessor designs. At the same time, critical business functions continue to demand scalability and reliability. By providing a broad portfolio of storage and server solutions, ESS aims to optimize the combined product solutions required by different customers and provide solutions for a wide range of operating environments, spanning both the enterprise and the SMB markets. ESS provides storage and server products in a number of categories.
b. HP Services (‘‘HPS’’)

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HPS provides a portfolio of multi-vendor IT services, including technology services, consulting and integration and managed services, also known as outsourcing. HPS also offers a variety of services tailored to particular industries such as communications, media and entertainment, manufacturing and distribution, financial services and the public sector, including government and education services. HPS collaborates with the Enterprise Storage and Servers and Software groups, as well as with third-party system integrators and software and networking companies to bring solutions to HP customers. HPS also works with HP’s Imaging and Printing Group and Personal Systems Group to provide managed print services, end user workplace services, and mobile workforce productivity solutions to enterprise customers. c. Software Software provides management software solutions, including support, that allow enterprise customers to manage their IT infrastructure, operations, applications, IT services and business processes under the HP Open-View brand. In addition, this segment delivers a suite of comprehensive, carrier-grade software platforms for developing and deploying next-generation voice, data and converged services to network and service providers under the HP Open-Call brand.

1. Personal Systems Group
PSG is one of the leading providers of personal computers (‘‘PCs’’) in the world based on unit volume shipped and annual revenue. PSG provides commercial PCs, consumer PCs, workstations, handheld computing devices, digital entertainment systems and other related accessories, software and services for the commercial and consumer markets.

2. Imaging And Printing Group
IPG is the leading imaging and printing systems provider in the world for consumer and commercial printer hardware, printing supplies, printing media and scanning devices. IPG is also focused on imaging solutions in the commercial markets, from managed print services solutions to addressing new growth opportunities in commercial printing in areas such as industrial applications, outdoor signage, and the graphic arts business. When describing HP’s performance
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in this segment, inkjet printer units and digital photography and entertainment products and services are grouped into consumer hardware, LaserJet printers and graphics and imaging products are grouped into commercial hardware and break out printer supplies separately.
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Inkjet Printers: Inkjet systems include desktop single function and inkjet all-in-one printers, including photo, productivity and business inkjet printers and scanners Digital Photography and Entertainment: Digital imaging products and services include photo specialty printers, photo kiosks, digital cameras, accessories and online photo services through Snap-fish in North America. An important part of IPG’s strategy is to provide digital imaging solutions that rival traditional imaging for quality, cost and ease of use so that consumers can manage their digital imaging throughout the home and outside the home

LaserJet Printers: LaserJet systems include monochrome and color laser printers, printer-based multi-function devices and Total Print Management Solutions for enterprise customers. A key initiative in this area of IPG’s business has been and continues to be driving color printing penetration in the office

Graphics and Imaging: Graphics and Imaging products include large format (DesignJet) printers, Indigo and Scitex digital presses, digital publishing solutions and graphics printing solutions. A key initiative for IPG is to capture high-value pages by developing compelling solutions for the industrial, commercial printing and graphics segments

Printer Supplies: Printer supplies include LaserJet toner and inkjet cartridges and other printing related media. These supplies include HP-branded Vivera and Color-Sphere ink and HP Premium and Premium Plus photo papers, which are designed to work together as a system to produce faster prints with improved resistance to fading, increased print quality and better affordability

1. HP Financial Services

HPFS supports and enhances HP’s global product and service solutions, providing a broad range of value-added financial life cycle management services. HPFS enables HP’s worldwide customers to acquire complete IT solutions, including hardware, software and services. The
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group offers leasing, financing, utility programs and asset recovery services, as well as financial asset management services for large global and enterprise customers. HPFS also provides an array of specialized financial services to SMBs and educational and governmental entities. HPFS offers innovative, customized and flexible alternatives to balance unique customer cash flow, technology obsolescence and capacity needs.

2. Corporate Investments
Corporate Investments is managed by the Office of Strategy and Technology and includes Hewlett-Packard Laboratories, also known as HP Labs, and certain business incubation projects. Revenue in this segment is attributable to the sale of certain network infrastructure products, including Ethernet switch products that enhance computing and enterprise solutions under the brand ‘‘ProCurve Networking’’.

I. COMPETITION
HP encounters aggressive competition in all areas of business activity. HP competes primarily on the basis of technology, performance, price, quality, reliability, brand, reputation, distribution, range of products and services, ease of use of its products, account relationships, customer training, service and support, security and availability of application software and its Internet infrastructure offerings. The markets for each of HP’s business segments are characterized by vigorous competition among major corporations with long-established positions and a large number of new and rapidly growing firms. Product life cycles are short, and to remain competitive HP must develop new products and services, periodically enhance its existing products and services and compete effectively on the basis of the factors listed above. In addition, HP competes with many of its current and potential partners, including original equipment manufacturers (‘‘OEMs’’) that design, manufacture and often market their products under their own brand names. HP’s successful management of these competitive partner relationships will continue to be critical to its future success.
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On an overall basis HP is the largest U.S.-based company offering a wide range of general purpose computers and personal information, imaging and printing products for industrial, scientific, business and consumer applications, and IT services. HP is the leader or among the leaders in each of its principal business segments.

The Competitive Environments In Which Each Segment Operates Are Described Below: Enterprise Storage and Servers:
The areas in which ESS operates are intensely competitive and are characterized by rapid and ongoing technological innovation and price reductions. Its competitors range from broad solutions providers such as International Business Machines Corporation (‘‘IBM’’) to more focused competitors such as EMC Corporation in storage, Dell, Inc. (‘‘Dell’’) in industry standard servers, and Sun Microsystems, Inc. in UNIX-based servers. HP believes that its important competitive advantages in this segment include its broad range of server and storage products and related software and services. HP’s global reach, significant intellectual property portfolio and R&D capabilities, which will contribute to further enhancements of HP’s product offerings and ability to cross sell its portfolio and leverage scale advantages in everything from brand to procurement leverage. HP Service: The principal areas in which HPS competes are technology services, consulting and integration and managed services. The technology services and consulting and integration markets have been under significant pressure as customers scrutinize their IT spending. However, this trend has benefited the managed services business as customers attempt to reduce their IT costs and focus their resources on their core businesses. HP’s key competitors in this segment include IBM Global Services, systems integration firms such as Accenture Ltd., outsourcing firms such as Electronic Data Systems Corporation and offshore companies. Many of its competitors are able
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to offer a wide range of services through a global network of service providers, and some of its competitors enjoy significant brand recognition. HP’s competitive advantages include its global delivery organization, deep technical expertise, diagnostic and IT management tools as well as ability to offer customers alternative service offerings from hardware support to consulting to datacenter outsourcing.

Software: HP’s software competitors include companies focused on providing software solutions for IT management, such as BMC Software Inc, CA Inc., and IBM Tivoli Software. Personal Systems Group: The areas in which PSG operates are intensely competitive and are characterized by rapid price reductions and inventory depreciation. HP’s primary competitors for the branded personal computers are Dell, Acer Inc, Apple Computer, Inc., Gateway, Inc., Lenovo Group Limited and Toshiba Corporation. In particular regions, it also experiences competition from local companies and from generically-branded or ‘‘white box’’ manufacturers. HP’s competitive advantages include its broad product portfolio, innovation and research and development capabilities, brand and procurement leverage, ability to cross sell its portfolio of offerings, its extensive service and support offerings and the availability of broad based distribution of products from retail and commercial channels to direct sales. Imaging and Printing Group: HP is the leading imaging and printing systems provider in the world for printer hardware, printing supplies and scanning devices. HP believes that its brand recognition, reputation for quality, breadth of product offerings and large customer base are important competitive advantages. However, the markets for printer hardware and associated supplies are highly competitive, especially with respect to pricing and the introduction of new products and features.
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IPG’s key competitors include Canon USA, Inc., Lexmark International, Inc., Xerox Corporation (‘‘Xerox’’), Seiko Epson Corporation, Samsung Electronics Co. Ltd. and Dell. In addition, independent suppliers offer refill and remanufactured alternatives for HP’s supplies which, although generally offering lower print quality and reliability, may be offered at lower prices and put pressure on HP’s supplies sales and margins. Other companies also have developed and marketed new compatible cartridges for HP’s laser and inkjet products. In recent years, HP and its competitors have regularly lowered prices on printer hardware both to reach new customers and in response to the competitive environment. Important areas for future growth include digital photography in the home and outside the home, printer-based multi-function devices in the office space, digital presses in its imaging and graphics space and driving color printing expansion in the office. While HP encounters competitors in some product categories whose current market share is greater than HP’s, such as Xerox in copiers and Heidelberger Druckmaschinen Aktiengesellschaft in publishing, HP believes it will provide important new contributions in the home, the office and publishing environments by providing comprehensive solutions. HP Financial Services: In HP’s financing business, its competitors are captive financing companies, mainly IBM Global Financing, as well as banks and financial institutions. HP believes its competitive advantage in this business over banks and financial institutions is its ability to finance products, services and total solutions Economic Uncertainty Could Affect Adversely HP’s Revenue, Gross Margin and Expenses: HP’s revenue and gross margin depends significantly on general economic conditions and the demand for computing and imaging products and services in the markets in which it competes. Economic weakness and constrained IT spending has previously resulted, and may result in the future, in decreased revenue, gross margin, earnings or growth rates and problems with its ability to manage inventory levels and collect customer receivables. HP could experience such economic weakness and reduced spending, particularly in its consumer businesses, due to the effects of high fuel costs. HP also has experienced, and may experience in the future, gross
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margin declines in certain businesses, reflecting the effect of items such as competitive pricing pressures, inventory write-downs, charges associated with the cancellation of planned production line expansion, and increases in pension and post-retirement benefit expenses. Economic downturns also may lead to restructuring actions and associated expenses. Uncertainty about future economic conditions makes it difficult for HP to forecast operating results and to make decisions about future investments. Delays or reductions in information technology spending could have a material adverse effect on demand for its products and services, and consequently its results of operations, prospects and stock price. Due to the international nature of HP’s business, political or economic changes or other factors could harm its future revenue, costs and expenses and financial condition. Sales outside the United States make up more than 60% of HP’s net revenue. So HP’s future revenue, gross margin, expenses and financial condition also could suffer due to a variety of international factors. Graph4: Revenue by Segment

Source: HP Annual Report 2008

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Graph5: Revenue by Region

Source: HP Annual Report 2008

Relationship Assessment Program (RAP)
The Challenge
Improving Customer Loyalty to Support HP's Strategic Growth Goals The high tech industry has seen unprecedented consolidation over the past five years as globalization trends intensify and the sector matures. In addition to pursuing an innovative organic growth strategy, HP has maintained its competitive position with aggressive merger and acquisition initiatives acquiring such market leaders as Compaq, Voodoo-PC, Peregrine, Mercury Interactive and Opsware. With many of HP's products and services already occupying leading positions in their respective markets, the company sought to build customer loyalty by ensuring synergies gained from its M&A activity benefited its customers. In many important ways, HP's sales organization is the front line in achieving its growth goals providing the main communication channel to its customers. To that end, HP's leadership challenged its sales organization to drive new levels of customer loyalty to help build more strategic relationships and differentiate its capabilities from its competition.
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The Solution
A Consistent, Best-in-Class Customer Management Program for HP Sales To support the sales organization's transformational efforts, HP established a strategic business program called the Relationship Assessment Program (RAP). RAP was designed to measure and drive increased sales effectiveness by focusing account management behaviors in areas that provide the most compelling value to HP customers. RAP has leveraged best-in-class methodologies, tools and analytics supported by the Satmetrix for Account Management (SAM) solution. HP sales teams use the pre-arranged, structured collection and feedback methodologies provided by RAP to assess the account relationship across these three focus areas. RAP delivers these capabilities through a team of sales support resources and the Satmetrix for Account Management solution which automates much of the collection, analysis and reporting requirements of the program.

RAP's Use of the Satmetrix for Account Management Solution
HP deployed the Satmetrix for Account Management solution to deliver a customer relationship toolkit that was easy for its sales teams to adopt. This simplicity allowed RAP to quickly become a "best practice" with progressive account managers. These sales leaders shared an interest in conducting structured dialogs with their customers about other subjects than HP products and services. The RAP program takes advantage of Satmetrix for Account Management's web-hosted technology platform, giving RAP the flexibility to gather global feedback through face-to- face interviews or via the Internet. RAP also leverages the solution's multi-lingual capabilities to provide a single solution across HP's many geographic regions. Over the years, HP has worked closely with Satmetrix to improve its customer assessments by addressing the many dimensions of its account relationships, including: • Service priorities
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• • • •

Satisfaction Loyalty Gaps in understanding Performance vs. competitors Future customer and industry priorities

In addition to assisting the individual account teams, historical customer feedback is available online, which allows HP to aggregate and analyze macro trends. Sales management applies these insights to identify and validate systemic issues across accounts so that strategies, priorities and resources can be adjusted in a more timely fashion. HP sales use RAP results to explore and act on customer satisfaction, loyalty and other important customer relationship dimensions. The RAP program is currently being used with most of HP's top 1000 Enterprise accounts and has become an integral part of the sales process. Interviews with HP's global sales executives provided valuable insights into how their account teams have leveraged RAP to build more strategic relationships with their customers. RAP helps HP optimize relationships with its customers, supporting accelerated revenue, and improved customer loyalty.

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1.PROJECT PROFILE

PROJECT PROFILE
In this era of globalization company can survive only when it knows the fast of consumer, which is changing day by day. A company can get an edge over its competitors in these cutthroat competitions through superior quality, innovations and better customer responsiveness. More and more businesses today are recognizing the importance of operational loyalty programs in which ownership and action are the responsibility of every employee. By cultivating a strong loyalty program, companies can proactively address potential issues and identify new business opportunities. A key program in raising HP's customer loyalty scores is a customer relationship development and growth initiative started couple of years ago called the Relationship Assessment Program (RAP). Sales organizations can use RAP results to explore and act on customer satisfaction,
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loyalty and other important customer relationship dimensions. With insights provided by RAP, sales teams are able to quickly analyze customer feedback and incorporate it into their business plans, which have helped to increase HP’s sales funnel and close more business. I carried out my project concerning “Relationship Assessment Program and IPG Enterprise Customer Survey for HP” to assess the existing level of relationship between HP and its Top Accounts. Based on the feedback from these accounts, I identified top 5 areas of improvement, which can result in their better relationship with HP. RAP drives sales performance across three major areas of B2B customer relationships:
• • •

Service Level Performance: Doing the fundamentals well by ensuring that the account is properly serviced to create positive impacts for the customer Competitive Positioning: Providing differentiated performance by focusing activities in the most valued areas for the customer Customer Loyalty and Satisfaction: Ensuring long-term benefits for the customer that build a set of referenced success stories to demonstrate the strategic nature of the relationship.

The project was carried out throughout India either through Telephonic, Web or Face-to-face interview. My study particularly involved finding out importance of the factors that drives their businesses and hence evaluate the performance of each satisfaction driver. In the case of IPG Enterprise Customer Survey, I conducted a Blind telephonic Survey in which I was interested in learning about the experience of the customers with their Printer Manufacturer’s Services and their Support Capabilities.

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1.OBJECTIVE OF STUDY

OBJECTIVE OF STUDY

Assess the existing level of relationship between Hewlett Packard and its Top Accounts through Relationship Assessment Program. Based on the feedback from top accounts, identify top 5 areas of improvement, which can result in their better relationship with HP

IPG Enterprise Customer Survey, in which we were interested in learning about the
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experience of the customer with their Printer Manufacturer’s Services and their Support Capabilities

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5. RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Type of Research
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It was an exploratory research in which we had to interview HP's top Enterprise accounts.

Sample Size
RAP’s sample size was 60 respondents and in the case of IPG Enterprise Customer Survey it was 118 respondents.

Sampling Technique Involved
Judgmental Sampling was used to identify the Enterprise accounts. The account names of the organization or the names of concerned person were given to us by Account Managers. Sometimes we have to analyze and then find out the concerned person or the decision maker in the organization after consulting many people. Thus it was a selective decision of HP or research associate regarding subject.

Data Collection Technique
The responses for RAP were taken using questionnaires which were filled by us after we have interviewed (Face to face or Telephonic) the person. In the case of IPG we conducted a Blind telephonic Survey (the respondents were not informed regarding which vendor was conducting the survey). Thus it can be said that the method for data collection used was Questionnaire as well as interview technique.

Questionnaire
The model questionnaire was given to us and according to the Indian context we had to add or delete few of the questions.

Type of data
• • Primary data was obtained through the process of interviewing the respondents Secondary data was collected from the company internal sources

Technique of analysis
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Analysis for RAP data was done by using Satmetrix Software and in the case of IPG it was done by using the MS excel. Percentage analysis was used to analyse the data. Histograms and pie charts are used to explain the output.

Challenges Faced:
• • • • Getting an appointment from the respondents was a big challenge, as most of the respondents were from top management It was experienced during the survey that it was difficult to convince or make the respondents understand the important of the project Some time the emotional attachment and brand loyalty of respondents prohibited to give correct information The time constraint faced in the project might have affected the comprehensiveness of its findings

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6. OBSERVATION & ANALYSIS

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OBSERVATION AND ANALYSIS OF RAP
1. Overall satisfaction with HP
The section deals with the Overall satisfaction with HP. Data obtained from 60 respondents is represented in tabular and graphical forms. • Business-to-business experiences with HP No. of Respondents 8 20 16 10 6

Satisfaction Level Completely satisfied Very satisfied Satisfied Somewhat dissatisfied Dissatisfied

With regard to Business-to-business experiences with HP 13%, 33% and 26% of the respondents were completely satisfied, very satisfied and satisfied respectively. There are a good 16% and 10% of respondents who were somewhat dissatisfied and dissatisfied respectively.

Buying HP again No. of Respondents 18 22 10 10

Buying HP again Definitely would buy Probably would buy Might or might not buy Probably would not buy

If the respondents were in market for IT products and services today, how likely would they buy, the above table shows the breakup of their responses.

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Recommend HP Recommend HP Definitely would recommend Probably would recommend Might or might not recommend Probably would not recommend Definitely would not recommend No. of Respondents 20 16 12 8 4

When it came to recommending HP to other associates or colleagues, nearly 33%, 26% and 20% of them said they would definitely recommend, probably would recommend and might or might not recommend respectively. In the case of respondents saying probably would not recommend and definitely would not recommend there were 13% and 6% accordingly.

2. Satisfaction Drivers and Performance
Under this section all the data deals with the Satisfaction Drivers and Performance of HP on a scale of 1 to 10. Data obtained from 60 respondents is represented in tabular form.
Rating >=7 6 <=5 Comment Generally meeting requirements; maintain performance, or build on these strengths Some gaps exist; prevent these from becoming problem areas Significant gaps in importance and satisfaction; should be prioritized and addressed

2a. Overall Ease Of Doing Business (EODB)

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It involves the entire process from the time the client orders the product till it is delivered and installed. Rating from the respondents regarding HP’s performance in EODB is represented here Rating <=5 6 7 8 9--10 No. of Respondents 6 15 13 20 6

2b.Effectively provides integrated solutions (a combination of HP hardware, software, services and/or partnership expertise) to solve a key business need or requirement. Rating <=5 6 7 8 9--10 No. of Respondents 12 12 16 11 9

20% of the respondents gave rating below 5 which means there are significant gaps in importance and performance with HP providing integrated solutions whereas 60% were satisfied. 2c. Overall satisfaction with HP’s ability to effectively service and support your IT solutions Rating <=5 6 7 8 9--10 No. of Respondents 12 10 14 20 4

When it comes to HP’s ability to effectively service and support IT solutions 20% of the respondents faced significant gaps but 63% of them were happy with HP.
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2d. Overall effectiveness of business understanding and partnership capabilities Rating <=5 6 7 8 9--10 No. of Respondents 8 8 16 22 6

73% of the respondents said HP’s effectiveness of business understanding, partnership capabilities and ability to understand their business priorities and critical success factors is good but 13% were not satisfied. 2e. Ability to understand your business priorities and critical success factors Rating <=5 6 7 8 9--10 No. of Respondents 8 8 14 20 10

2f. Overall effectiveness of HP's communications with you Rating <=5 6 7 8 9--10 No. of Respondents 4 8 24 17 7

80% of the respondents said overall HP's communications with them was effective but 6% disagreed.
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2g.The product, software and services information HP provides contributes to your IT planning process Rating <=5 6 7 8 9--10 No. of Respondents 10 14 10 20 6

60% of the respondents said the product, software and services information HP provided contributed to their IT planning process where as 16% of them said there were significant gaps. 2h. Ability to proactively propose solutions for your business needs Rating <=5 6 7 8 9—10 No. of Respondents 23 8 8 12 9

38% of them faced gaps in HP’s ability to proactively propose solutions for their business needs. 2i.Overall added value derived from HP's business relationship with your company Rating <=5 6 7 No. of Respondents 8 10 15
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8 9--10

20 7

2j. Effectiveness in helping you manage your total cost of ownership Rating <=5 6 7 8 9--10 No. of Respondents 12 17 14 9 8

2k. Compelling ROI of HP solutions Rating <=5 6 7 8 9--10 No. of Respondents 8 14 24 6 8

63% of the respondents experienced compelling ROI from HP solutions. 2l. Ability to provide technology and process expertise to solve complex IT problems Rating <=5 6 7 8 9--10 No. of Respondents 8 4 22 18 8

80% of them said HP has the ability to provide technology and process expertise to solve complex IT problems.

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2m. Account team's ability to add strategic business value to help you meet your company's business initiatives

Rating <=5 6 7 8 9--10

No. of Respondents 10 7 16 21 6

2n. HP executives and account team are considered trusted business advisors Rating <=5 6 7 8 9--10 No. of Respondents 6 10 18 16 10

73% of them said HP executives and account teams are considered trusted business advisors where as 10% disagreed with this. 2o. Overall effectiveness of executive engagement between our companies Rating <=5 6 7 8 9--10 No. of Respondents 6 8 17 19 10

2p.Overall quality and reliability of HP's products and technology Rating <=5 6 No. of Respondents 0 2
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7 8 8 32 9--10 18 Surprisingly 97% of the respondents said the overall quality and reliability of HP's products and technology is excellent

3. Best Practice
When compared to competition HP performance according to respondents Levels with Competition Way below Slightly below At par Above No. of Respondents 6 9 31 16

When compared to competition, 27% of the respondents said HP’s performance is above others and 52% said it’s at par with others whereas 11% said it’s slightly below and 10% said its way below other competitors.

4. Priorities and Preferences
4a.In the short term (six months or less) according to respondents, HP should concentrate on Areas Ease of doing business (EODB) Integrated solutions (IS) Services and technical support Business understanding and partnership Relationship value No. of Respondents 6 4 33 17 0

In the short term (six months or less) according to respondents, HP should concentrate on Services and technical support (55%) and Business understanding and partnership (28%).

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4b.In the long term according to respondents, HP should increase attention on Areas Ease of doing business (EODB) Integrated solutions (IS) Services and technical support Business understanding and partnership Relationship value No. of Respondents 2 5 16 22 15

In the long term according to respondents, HP should increase attention on Business understanding and partnership (37%), Services and technical support (27%), and Relationship value (25%).

4c. Top Strengths that cause respondents to choose HP over others Strengths Reliable Hardware Quality Product range Relationship Branding Price No. of Respondents 36 30 19 13 10 7

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More than 50% of the respondents were happy with HP’s product quality and reliability, 32% of them said the product range is excellent when compared to competition.

4d. Top things that respondents would like to see changed or improved Weakness Technical Support Not working like a Cohesive unit Delay in Response Proactive Communication Human Related Third party related Inability to close long standing issues No. of Respondents 40 25 20 18 14 9 8

67% of the respondents were not happy with the Technical support and 42%, 33% and 30% of them were not satisfied because of HP not working like a single unit, delay in response and lack of proactive communication.

5. Relationship
5a. HP’s relationship with respondent’s company, currently Relationship Product and Services Vendor No. of Respondents 55
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Value-added Solutions Provider(VASP) Strategic partner or ally

5 0

92% 0f the respondents said presently HP is only a Product and Services Vendor and remaining consider HP has a Value-added solutions provider.

5b. HP’s relationship with respondent’s company, desired Relationship Product and services vendor Value-added solutions provider Strategic partner or ally No. of Respondents 0 28 32

Nearly 53% of the accounts want to have HP as a Strategic partner or ally and remaining 47% want HP to be a Value-added solutions provider.

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OBSERVATION AND ANALYSIS OF IPG ENTERPRISE CUSTOMER SURVEY
We conducted a Blind telephonic Survey (the respondents were not informed regarding which vendor was conducting the survey), so that there will be no bias. Totally we called 211 accounts but due to lack of interest from some respondents and insufficient time only 118 successful surveys were possible. Actual Deployment No. of Accounts Status Total Calls made Total Successful Surveys Total Surveys on Multi vendors printer Exclusive customers for HP 85 211 118 33

Region wise break up of IPG Enterprise Accounts is given below in tabular form:

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Region wise break up of Actual form: deployment is given below in tabular

IPG Enterprise Accounts – 211 Region No. of accounts East 71 North 25 South 66 West 49

IPG Enterprise Accounts – 118 Surveys Region No. of accounts East 35 North 13 South 39 West 31
1. Types Of Printers Used In Sampled Accounts

Type of Printers ALL Laser Jet Multifunction Laser Jet Office Jet Ink Jet

No. of Accounts 45 39 26 6 2

Nearly 38% of the accounts had all type of printers; most of them were big corporates. Accounts only having Laser Jet Multifunction and Laser Jet were 33% and 22% respectively.

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2. Services And Technical Support

Under this section all the data deals with the Services and technical support on a scale of 1 to10. Data obtained from 118 respondents is represented in tabular and graphical forms. 2a. Performance of Call Center Call Center performance 7.83 7.72 7.5 6.5 5.14

Vendors (Sample) XEROX(7) CANON(19) HP(116) SAMSUNG(6) OTHERS(7)

HP is performing decently when it comes to the performance of the call center; it’s only bettered by Xerox and Canon. 2b. Performance of Onsite Support Onsite Support performance 7.42 7.28 5.85 5.3 5.25

Vendors (Sample) CANON(19) XEROX(7) HP(116) SAMSUNG(6) OTHERS(7)

HP’s Onsite Support is really not that impressive, Onsite technicians are not able to sole the issues immediately this may be due to lack of availability of spare parts.
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2c. Ability to repair the printer

Vendors (Sample) CANON(19) XEROX(7) HP(116) SAMSUNG(6) OTHERS(7)

Ability to repair 7.21 7 6.16 5.92 5.5

When it comes to ability to repair the printer it is doing decently, but still Canon and Xerox are performing better than HP. 2d. Ability to keep customer informed regarding the status of repair Keeping customer informed 7.42 7.16 6.5 5.34 5.12

Vendors (Sample) HP(116) XEROX(7) CANON(19) SAMSUNG(6) OTHERS(7)

HP secured the top position when it comes to, ability to keep customer informed regarding the status of repair. When compared to other parameters Canon is not performing that well where as Samsung is well below competition.

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2e. Satisfaction with how the manufacturer administers your Support Agreement event (i.e., renewal or contract changes) Satisfaction with support agreement 7.6 7.25 6.57 5.75 4.75

Vendors (Sample) CANON(19) HP(116) XEROX(7) OTHERS(7) SAMSUNG(6)

HP got a decent rating when it comes to renewal or contract changes HP, the credit goes to its Account Managers.

3. Best Service Support
With regard to technical support, 67 out of 116 Enterprise accounts were satisfied with HP’s support. But in those accounts which had Canon, Xerox and HP they rated Canon as the best service provider.

Vendors (Sample) Number CANON(19) 13 HP(116) 67 XEROX(7) 3 OTHERS(17) 2

Best Service Support % 68.4 57.8 42.8 11.7

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HP is doing considerably well in South and West regions, were accounts are highly satisfied with its Service Support.

4. Dissatisfaction Factors
We found out that with HP, more than half of the respondents were not happy with the Service Support, especially in East region. Adding to this Onsite technicians are not able to sole the issues immediately this may be due to lack of availability of spare parts. Once the complaint is lodged by the accounts with the call center, 17% of them also faced delay in technicians coming and addressing the issue. Buckets Service Support Availability of spare parts Quick response Warranty Pricing Proactive Communication Others Replacement Quality Number 66 25 20 9 8 7 7 5 4 % 56% 21% 17% 8% 7% 5% 5% 4% 3.5%

Industry Attractiveness Analysis

Porters Five Force

Model

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Huge growth rates have been expected in IT hardware sector in India as well as all over the world. However this industry looks to be very attractive primarily because of higher margins and the forces that shape up the industry as HP is one of the leading players. Other aspects have been analyzed as follows. – Threat of new entrants [ Low ] The industry is highly capital intensive. Huge capital needs to be invested for procuring advanced machineries and modern technology, marketing activity as well as building up inventories. The major strengths of the current players are strong brand presence and established R&D. As a result the threat of new entrants is low but local established players can give a tough competition. Some players like Apple and Asus have made successful entry to Indian market. – Bargaining power of suppliers [ low ] As HP has global presence it has set-up manufacturing units in those countries were cost of production is less. Bargaining power of suppliers is low because HP is a large player and can easily find raw material vendors across the world.

Bargaining power of buyers [ High ] Demand for IT products is high but at the same time there are many vendors. The competitive pressure is very high because of very less difference in product specifications and price. Hence buyers can switch to another vendor without incurring high switching costs.

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Threat of substitute products [ Low] In the IT hardware sector threat of substitute products is always there due to technology advancement but currently it’s low.

Rivalry among competing firms [ High ] All over world 21% of the PC market is held by HP, 19% by Dell, 17% by Acer and other players share the rest, there is intense competition in this sector. But in the case of Servers and Printers HP has a strong foothold across the world.

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7. FINDINGS

SWOT ANALYSIS
Strengths
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• • •

Rated high on product quality and reliability Strong brand equity Diversified product portfolio (offerings spans personal computing and other access devices; imaging and printing-related products and services; enterprise information technology infrastructure, multi-vendor customer services, consulting and integration and outsourcing services)

• •

Solid market position in key segments Excellent pool of talent

Weaknesses
• • • • • • Internal control issues Lack of in-house management consulting division Inventory Centralizing the important information prevents other hands from creating efficiencies around the tasks that occur during a product release Software is really not up to the mark Poor after sales support

Opportunities

Huge potential market in Government organizations and Public Sector Undertakings e-Commerce expansion Restructuring of internal IT structure Imaging and printing businesses Utilizing other channels of sales

• • • •

Threats
• • Intense competition from other PC manufacturers Increasing competition on imaging and printing
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• • • •

Slowdown in economic conditions around the world Product recalls and supply chain disruptions Exposed to fluctuations in the World currency markets (i.e., changes in exchange rates) New entrants to the market pose potential threats

FINDINGS BASED ON RAP
1. Overall satisfaction with HP
• •

47% of the respondents are loyal towards HP 27% of the respondents are favorable towards HP 16% of the respondents were vulnerable

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10% of the respondents are at high risk and there is a high chance of these respondents switching over to other vendors

1. Satisfaction Drivers and Performance
HP is performing decently well in most of the Satisfaction Drivers except those related to Service Support.

2. Best Practice
Majority of the clients think HP is either above or at par with competition, except when it comes to Software.

3. Priorities and Preferences
HP’s Services and technical support and Business understanding and partnership is the main priority for many clients both in the short and long term. Top Strengths that made respondents to choose HP over others • Reliable Hardware • Quality

Product range

Top things that respondents would like to see changed or improved •
• •

Technical Support Not working like a Cohesive unit Delay in Response

1. Relationship
HP’s relationship currently with most of the client’s company is limited to Product and services vendor but most of them desire to have HP has a Strategic partner or ally or Valueadded solutions provider

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FINDINGS BASED ON IPG ENTERPRISE CUSTOMER SURVEY
1. Types of Printers used in sampled accounts

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Big corporates were using all type of printers. Banks and Government organizations had more of Laser Jet Multifunction and Laser Jet.

2. Services and technical support
2a. Performance of Call Center: HP is performing decently when it comes to the performance of the call center; it’s only bettered by Xerox and Canon. 2b. Performance of Onsite Support: HP’s Onsite Support is really not that impressive, Onsite technicians are not able to sole the issues immediately this may be due to lack of availability of spare parts. 2c. Ability to repair the printer: When it comes to ability to repair the printer it is doing decently, but still Canon and Xerox are performing better than HP. 2d. Ability to keep customer informed regarding the status of repair: HP is performing really well when it comes to, ability to keep customer informed regarding the status of repair. When compared to other parameters Canon is not performing that well where as Samsung is well below competition. 2e. Satisfaction with how the manufacturer administers your Support Agreement event: When it comes to renewal or contract changes HP is able to do well, the credit goes to its Account Managers.

3. Best Service Support
HP’s Service Support is really not that impressive, nearly half of the accounts were not happy with HP’s support. But in those accounts which had Canon, Xerox and HP they rated Canon as the best service provider.

4. Dissatisfaction Factors
We found out that with HP, more than half of the respondents were not happy with the Service Support, especially in East region. Adding to this Onsite technicians are not able to sole the issues immediately this may be due to lack of availability of spare parts. Once the

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complaint is lodged by the accounts with the call center, some of them also faced delay in technicians coming and addressing the issue.

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8. RECOMMENDATIONS AND CONCLUSION

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RECOMMENDATIONS AND CONCLUSION
In this modern era when globalization and liberalization has brought a tide of change and only those companies can survive, which will ride on it or which will keep them isolated and let the tide go. No company can be untouched from the storm of change and the pace of adaptiveness will decide its success. The market share of company will be decided from the value it gives to the customer, the relations it has with its channel partners and end consumers, the number of innovative products it has in its basket and its position in consumers mind. HP has a good potential in the Indian market especially in PC’s, Servers and Printers but HP surely has to apply cost cutting measures in the highly competitive market. The marketing and sales departments are doing good, but after sales support has to be strengthened and concentrated to specific verticals. The distribution network of HP has to be strengthened. If HP is able to create awareness about their quality and reliable products amongst their target consumer base they can be far ahead of the competition but they have to make a fast move as its competitors on the global basis (specially from the Chinese manufacturers) are also making strong inroads into the Indian market. More focus should go into making people aware of the obvious superiority of HP over other Vendors.
1. Few accounts are at high risk and there is a high chance of these accounts switching over

to other vendors. Immediately a detailed report from the account manager should be obtained and the problem areas should be prioritized and addressed. 2. A significant number of accounts are vulnerable, there are some gaps existing, HP should prevent them from becoming problem areas.
3. An action plan/set of initiatives that HP will be driving to address the short and longer-

term issues raised in the feedback should also become an integral part of HP’s relationship and business development plan.
4. Revisit the progress made on the deployment of action plan/initiatives as part of account

team's regular governance framework.
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5. Reaffirm After-sales team and HP's overall value proposition to the accounts.

6. Service and technical support has been the main concern area, Technicians in general lack the spirit of enthusiasm as in they look uninterested. So HP should put all its efforts in improving its support by recruiting competent technicians and tuning them towards customers. It is also a priority because Dell is eating up HP’s market share because of its prompt service support. 7. Remote geographies are struggling with HP’s attention/coverage deficit. 8. Manage accounts from both the macro (entire infrastructure portfolio) and strategic project level (micro). 9. Some Accounts expect their IT partners to help consolidate and centralize their IT, but will drive harder to tie investments to their business objectives. 10. Improvements needed in dealing with procurement, since most of their feedback has to do with Ease of Doing business. 11. HP should concentrate more on providing integrated solutions with special focus on software. 12. Constant Proactive communication should be done with the accounts, so that they are well aware of its new products. 13. Regularly feedback should be taken from the clients about the performance of the account manager because he is the key for the satisfaction of these accounts. 14. HP is not working like a cohesive unit because of internal control issues and size of the organization, employees should be empowered and made responsible.
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15. When a complaint is registered in the call center by the account, technician should visit the site immediately and close the issue at the earliest. 16. Currently HP is a Product and services vendor but many accounts desire to have HP as Value-added solutions provider or Strategic partner, so the top management of HP should work in this direction. 17. Availability of spare parts is the main issue in some of the accounts, so HP can either keep the spare parts in large quantity in the service center or even at customers place. So that the problem can be resolved immediately. 18. Maintenance kit with printers should be made optional, so that the price can be reduced. 19. To maintain their huge market share in printers, HP should come up with attractive buyback and replacement offers. 20. Company is having one of the best sales and marketing supports, with which it can tap the new opportunity thrown in market. 21. In this competitive world where the IT products are changing in every six months there is a need of providing a solution which can be easily upgraded or can be connected to a new technology. This is one of the limiting factors in purchase of Servers. Hence HP should come up with products which can be upgraded easily.

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9. LEARNING OUTCOMES

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LEARNING OUTCOME

How Organizations understand its customers and improve its relationship with them resulting in better business

Every customer has different needs and importance, so as a marketer understanding this is the most important thing, so that the customer becomes loyal to the firm

• •

Proper analysis of a problem should be done before implementing the Action Plan In the Action Plan only the concerned division should be involved, so that efficiency is maintained

How to change the perception of the customers about a product without changing the product

• • •

Converting the theoretical concepts learnt in the class into the Practical use How to work in a team One of the major learning outcomes from this project was how to interact with the customers effectively. It was a real challenge to handle dissatisfied customers. Customers generally have a wide range of queries which have to be answered patiently and convincingly. So to deal with customers is a fine art which is been learned from this project

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10. REFERENCES

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REFERENCES
Sources of Website and On-line Journals:
1. www.hp.com 2. www.itsectornews.com 3. www.globusz.com 4. www.nasscom.org 5. www.cmocouncil.org/programs/current/close/ejournal/october.html 6. www.neerajmishra.wordpress.com/2008/07/21/information-technology-it-in-india-the-

challenges-future-scope
7. www.economywatch.com 8. www.businessworld.in 9. www.researchandmarkets.com

The following reports were referred to
• Somesh K. Mathur, "Indian Information Technology Industry: Past, Present and Future & A Tool for National Development" (2008) • Sanjay K Shah, "Information Technology in India: Present Status and Future Prospects for Economic Development" (2007)

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11. ANNEXURE

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ANNEXURE
Abbreviations:
H.P = Hewlett- Packard SMBs= Small and Medium-sized Businesses TSG = Technology Solutions Group PSG = Personal Systems Group IPG = Imaging and Printing Group HPFS = HP Financial Services ESS = Enterprise Storage and Servers HPS = HP Services

The survey was conducted in Nationwide (North, East, West and South) regions of India.

QUESTIONNAIRE:

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Relationship Assessment Program 2009
Company: Customer Name: Interviewer: Date: Location:

Thank you for agreeing to give HP your feedback and advice about HP's relationship with you and your company. We are interested in learning about your experience with HP over the last twelve months.

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Please answer the following questions in all areas where you have experience or opinions. For other questions, the option "Does Not Apply" can be selected. This assessment should take about 30 minutes.

Thank you in advance for your feedback.

Section I: Overall Satisfaction with HP
1. Overall satisfaction with HP 1a. Thinking about all of your business-to-business experiences with HP, how satisfied are you?
□ □ □ □ □ □ Completely satisfied Very satisfied Satisfied Somewhat dissatisfied Dissatisfied Don’t know

1b. If you were in the market for IT products and services today, how likely would you be to select HP again?
□ □ □ □ □ □ Definitely would buy Probably would buy Might or might not buy Probably would not buy Definitely would not buy Don’t know

1c. How likely are you to recommend HP to other associates or colleagues?
□ □ □ □ □ □ Definitely would recommend Probably would recommend Might or might not recommend Probably would not recommend Definitely would not recommend Don’t know

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Section II: Satisfaction Drivers and Performance
1. For the following questions, please rate HP’s performance relative to the importance of each factor in helping your company meet business objectives.
Extremely important

Not at all

important Excellent Very poor 9 8 7 6 5 4 3 2 1 0 N/A

2a. Overall ease of doing business

Importance

10

Performance

10

9

8

7

6

5

4

3

2

1

0

N/A

2b. Effectively provides integrated solutions (a combination of HP hardware, software, services and/or partnership expertise) to solve a key business need or requirement 2c. Overall satisfaction with HP’s ability to effectively service and support your IT solutions

Importance

10

9

8

7

6

5

4

3

2

1

0

N/A

Performance

10

9

8

7

6

5

4

3

2

1

0

N/A

Importance

10

9

8

7

6

5

4

3

2

1

0

N/A

Performance

10

9

8

7

6

5

4

3

2

1

0

N/A

2d. Overall effectiveness of business understanding and partnership capabilities 2e. Ability to understand your business priorities and critical success factors

Importance Performance Importance

10 10 10

9 9 9

8 8 8

7 7 7

6 6 6

5 5 5

4 4 4

3 3 3

2 2 2

1 1 1

0 0 0

N/A N/A N/A

Performance

10

9

8

7

6

5

4

3

2

1

0

N/A

77

2f. Overall effectiveness of HP's communications with you 2g. The product, software and services information HP provides contributes to your IT planning process 2h. Ability to proactively propose solutions for your business needs

Importance Performance Importance

10 10 10

9 9 9

8 8 8

7 7 7

6 6 6

5 5 5

4 4 4

3 3 3

2 2 2

1 1 1

0 0 0

N/A N/A

N/A

Performance

10

9

8

7

6

5

4

3

2

1

0

N/A

Importance

10

9

8

7

6

5

4

3

2

1

0

N/A N/A

Performance

10

9

8

7

6

5

4

3

2

1

0

2i. Overall added value derived from HP's business relationship with your company

Importance

10

9

8

7

6

5

4

3

2

1

0

N/A

Performance

10

9

8

7

6

5

4

3

2

1

0

N/A

2j. Effectiveness in helping you manage your total cost of ownership

Importance

10

9

8

7

6

5

4

3

2

1

0

N/A

Performance

10

9

8

7

6

5

4

3

2

1

0

N/A

2k. Compelling ROI of HP solutions 2l. Ability to provide technology and process expertise to solve complex IT problems 2m. Account team's ability to add strategic business value to help you meet your company's business initiatives 2n. HP executives and account team are considered trusted business advisors 2o. Overall effectiveness of executive engagement between our companies

Importance Performance Importance Performance

10 10 10 10

9 9 9 9

8 8 8 8

7 7 7 7

6 6 6 6

5 5 5 5

4 4 4 4

3 3 3 3

2 2 2 2

1 1 1 1

0 0 0 0

N/A N/A N/A N/A

Importance Performance

10 10

9 9

8 8

7 7

6 6

5 5

4 4

3 3

2 2

1 1

0 0

N/A N/A

Importance Performance

10 10

9 9

8 8

7 7

6 6

5 5

4 4

3 3

2 2

1 1

0 0

N/A N/A

Importance Performance

10 10

9 9

8 8

7 7

6 6

5 5

4 4

3 3

2 2

1 1

0 0

N/A N/A

78

2p. Overall quality and reliability of HP's products and technology

Importance Performance

10 10

9 9

8 8

7 7

6 6

5 5

4 4

3 3

2 2

1 1

0 0

N/A N/A

Section III: Best Practices
2. How does HP compare to the competition?

Above competition competition

Below

3a. Overall ease of doing business 3b. Effectively provides integrated solutions (a combination of HP hardware, software, services and/or partnership expertise) to solve a key business need or requirement 3c. Overall satisfaction with HP’s ability to effectively service and support your IT solutions

10

9

8

7

6

5

4

3

2

1

0

N/A

10

9

8

7

6

5

4

3

2

1

0

N/A

10

9

8

7

6

5

4

3

2

1

0

N/A

3d. Overall effectiveness of business understanding and partnership capabilities
10 9 8 7 6 5 4 3 2 1 0 N/A

3e. Overall added value derived from HP’s business relationship with your company
10 9 8 7 6 5 4 3 2 1 0 N/A

3f. Overall quality and reliability of HP’s products and technology
10 9 8 7 6 5 4 3 2

1

0

N/A

79

3. Section IV: Priorities and Preferences

4a. In the short term (six months or less), what ONE area would you like HP to concentrate on most? (Check one) Ease of doing business Integrated solutions Services and technical support Business understanding and partnership Relationship value Product/technology quality and reliability Other: (Please specify) 4b. In the long term, in which ONE area would you like HP to increase attention? (Check one) Ease of doing business Integrated solutions Services and technical support Business understanding and partnership Relationship value Product/technology quality and reliability Other: (Please specify) 4c. what are the top 3 strengths that cause you to choose HP over others?
i) ________________________________________________________________ ii) __________________________________________________________________ iii) __________________________________________________________________

4d. what are the top 3 things that you would like to see changed or improved?
i) ___________________________________________________________________ ii) ___________________________________________________________________ iii) ___________________________________________________________________

4e. How do you see your organization and/or industry evolving, and how will these changes influence your business priorities?

80

Section V: Your Relationship
1. How would you describe HP’s relationship with your company?

Current □ □ □ Product and services vendor Value-added solutions provider Strategic partner or ally □ □ □

Desired Product and services vendor Value-added solutions provider Strategic partner or ally

Section VI: General Comments
1. We would sincerely appreciate any additional comments or suggestions you may have that would improve your relationship with HP

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IPG Enterprise Customer Feedback 2009
Company Name: Name of respondent: Date: Location: ____________________________________ ____________________________________ ____________________________________ ____________________________________

Good Morning/Afternoon/Evening. My name is ________________ (Name of the Caller) and I am calling from customer research firm, Am I speaking with Mr.____________________________________?

Mr. ___________ (Customer Name) we are interested in learning about your experience with your Printer Manufacturer’s Services and their Support capabilities, so would it be a suitable time to take your feedback? Yes Please be assured your answers would be kept confidential. (Entire survey would be done). No May I know the suitable time to call you back? (Note the date and time of call back requested by customer and give the closing script)

82

1. Types of Printers used in your Organization? □

Ink jet Office jet All in Ones Laser jet All in One

Laser jet Multifunction (Mono/Color) Laser Laser jet (Mono/Color)

Other (specify)

______________________ _

Section I: Services and Technical Support
1. Services and technical support Please rank your Printer Manufactures on the following attributes of service and technical support. Also rate their respective performance on a scale of 1-10.

i)

Performance of Call Center (Remote support over toll free phone) (Rank / Performance on scale of 1-10)

Rank 1 2 3

Printer Manufacturer

Performance (1Poor – 10 Excellent)

ii) Rank 1 2 3

Performance of Onsite Support (Rank / Performance on scale of 1-10) Printer Manufacturer Performance (1Poor – 10 Excellent)

83

iii)

Ability to repair the printer. (From the time the call is logged, till it is repaired). (Rank / Performance Turnaround time)

Rank 1 2 3

Printer Manufacturer

Performance (1Poor – 10 Excellent)

iv)

Ability to keep customer informed regarding the status of repair (Rank / Performance on scale of 1-10) Printer Manufacturer Performance (1Poor – 10 Excellent)

Rank 1 2 3

v)

Satisfaction with how the manufacturer administer your Support Agreement event (i.e., renewal or contract changes) (Rank / Performance on scale of 1-10) Printer Manufacturer Performance (1Poor – 10 Excellent)

Rank 1 2 3

84

1. With regard to technical support, which company do you consider to be the best (for its call center, Onsite support)?

Rank 1 2 3

Printer Manufacturer

Performance (1Poor – 10 Excellent)

What are the top 2 things that you would like to see changed or improved:

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