Name : Ruta Katre Roll No.

: 20 Subject : Special Studies In Marketing

Hewlett -Packard

FOUNDERS OF HEWLETT PACKARD

HP founders Bill Hewlett and David Packard Bill Hewlett and Dave Packard graduated in electrical engineering from Stanford University in 1935. The company originated in a garage in nearby Palo Alto during a fellowship they had with a past professor, Frederick Terman at Stanford during the Great Depression. Terman was considered a mentor to them in forming Hewlett-Packard. In 1939, Packard and Hewlett established Hewlett-Packard (HP) in Packard's garage with an initial capital investment of US$538. Hewlett and Packard tossed a coin to decide whether the company they founded would be called Hewlett-Packard or Packard-Hewlett Packard won the coin toss but named their electronics manufacturing enterprise the "Hewlett-Packard Company". HP incorporated on August 18, 1947, and went public on November 6, 1957. Hewlett-Packard Company commonly referred to as HP, is an American multinational information technology corporation headquartered in Palo

Alto, California, USA. HP is one of the world's largest information technology companies and operates in nearly every country. HP specializes in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services. Major product lines include personal computing devices, enterprise servers, related storage devices, as well as a diverse range of printers and other imaging products. HP markets its products to households, small- to medium-sized businesses and enterprises directly as well as via online distribution, consumer-electronics and office-supply retailers, software partners and major technology vendors. HP's posted net revenue in 2009 was $115 billion, with approximately $40 billion coming from services. In 2006, the intense competition between HP and IBM tipped in HP's favor, with HP posting revenue of US$91.7 billion, compared to $91.4 billion for IBM; the gap between the companies widened to $21 billion in 2009. In 2007, HP's revenue was $104 billion, making HP the first IT company in history to report revenues exceeding $100 billion. In 2008 HP retained its global leadership position in inkjet, laser, large format and multi-function printers market, and its leadership position in the hardware industry. Also HP became #2 globally in IT services as reported by IDC & Gartner. Major company changes include a spin-off of part of its business as Agilent Technologies in 1999, its merger with Compaq in 2002, and the acquisition of EDS in 2008, which led to combined revenues of $118.4 billion in 2008 and a Fortune 500 ranking of 9 in 2009. In November 2009, HP announced the acquisition of 3Com. On April 28, 2010, HP announced the buyout of Palm for $1.2 billion. On May 16, 2010, the acquisition of Palm was final.

Hurd (President. California (1939) Bill Hewlett David Packard Headquarters Palo Alto. CEO & Chairman) Catherine A. California.COMPANY PROFILE Hewlett-Packard Company Type Public (NYSE: HPQ) Dow Jones Industrial Average component Computer Software IT consulting IT Services Computer Systems Computer Peripherals Industry Founded Founder(s) Palo Alto. USA Area served Worldwide Mark V. Lesjak (CFO) Key people .

552 billion (2009) ▲ US$ 10.136 billion (2009) ▲ US$ 9.942 billion (2009) 310.Products Computer Monitors Digital Cameras Enterprise Software Indigo Digital Press Mobile Phones Networking Personal Computers and Laptops Personal Digital Assistants Printers Scanners Servers Storage Televisions Telecommunications hardware and software ▼ US$ 114.539 billion (2009) ▲ US$ 38.000 (after 3Com acquisition)(2009) Revenue Operating income Net income Total assets Total equity Employees Subsidiaries Compaq .415 billion (2009) ▲ US$ 52.

formerly known as HP ProCurve Networking. The lab has some 600 researchers[1]in seven locations throughout the world. Once the largest supplier of personal computing systems in the world. HP Labs HP Labs (or HP Laboratories) is the exploratory and advanced research group for Hewlett-Packard. Snapfish Snapfish is a web-based photo sharing and photo printing service currently owned by Hewlett-Packard.Compaq Computer Corporation is an American personal computer company founded in 1982. is a global business and technology services company . [1] Compaq existed as an independent corporation until 2002. when it was acquired for $25 billion by Hewlett-Packard. ProCurve HP Networking is the networking division of HP. HP Enterprise Services HP Enterprise Services.

or VoodooPC is a luxury personal computer manufacturer owned by Hewlett Packard Palm.com . 2010. Inc. HP announced that it had agreed to acquire Palm for $1.2 billion Website HP. Palm. is a smartphone manufacturer On April 28.VoodooPC Voodoo Computers Inc. Inc.

BRANDS OF HEWLETT – PACKARD Printers :  HP Printers for Everyday printing Photo & document printing Home office printing Business laser printing HP All-in-Ones for • • • • Everyday printing Photo & document printing Home office printing Business laser printing .

Photosmart Printers Hewlett-Packard's line of digital cameras and photo printers is called Photosmart.Laserjet Printers LaserJet as a brand name identifies the line of dry electrophotographic (DEP) laser printers marketed by the American computer-company Hewlett-Packard (HP). .

• Digital Cameras : .Designjet printers Deskjet printers DeskJet is a brand name for inkjet printers manufactured by HewlettPackard Company.

Photosmart series HP E-series HP M-series HP R-series • HP Software products : HP Quality Center HP Quicktest Professional HP Business Process Testing HP Change Impact Testing HP Load Runner HP SureSupply • Scanners : Scanjet Series .

• PDA(Personal Digital Assistant) : • Some Other Products Of HP : Pocket computers iPAQ • Desktop calculators and computers .

Plotters HP Touch Smart PC Servers : Entry Level Servers ProLiant DL Series ProLiant ML Series ProLiant BLp blades .

ProLIant BLc blades CEO PROFILE Mark Vincent Hurd .

USA (age 53) Residence Education Browning School Archbishop Curley-Notre Dame High School Bachelor of Business Administration from Baylor University in 1979 Occupation President.Mark Vincent Hurd Born January 1. California. USA Palo Alto. HewlettPackard . 1957 Flushing. CEO and Chairman. New York.

Hurd has a reputation for cost-cutting. and president of Hewlett-Packard.000 to 8. Dunn as chairman after she resigned as a result of the pretexting controversy. and removed many benefits. where legally permitted. 2006. reducing the number of software applications that HP uses from 6. 2005 after former CEO Carly Fiorina stepped down.000. the largest information technology company in the world. who served as interim CEO from February 10. He laid off 15. Hurd succeeded Patricia C.200 workers—10% of the workforce—shortly after becoming CEO. On September 22. During the recent recession Mark Hurd imposed a 5% pay cut on all employees. Other cost-cutting moves include cutting the IT department from 19. respectively. He says that he gets up every day at 4:45AM in California without an alarm clock because he believes a competitor is already awake on the east coast.5%.Spouse(s) Paula Kalupa Mark Vincent Hurd is the chairman.500. chief executive officer. Mark Hurd himself took . and increasing its 2008 market share in inkjet and laser printers to 46% and 50. Management style: Hurd is regarded as one of the most successful managers in the United States for turning around HP and putting it in first place in the sales of desktop computers (since 2007) and laptop computers (since 2006). and consolidating the HP's 85 data centers to 6. 2005 to March 28. Hurd succeeded CFO Robert Wayman.000 to 1.

Mark Hurd instructed that all EDS staff should have their pay adjusted to match that of their HP counterparts. but its profits will increase by nearly 6%. as well as being a global player within the technology consulting industry.643 billion (2009) ▼ US$ 1. It is said to be the largest consulting firm in the world. Previously incorporated in Bermuda. the company has over 181.58 billion (2009) ▼ US$ 2.000 employees in 200 locations in over 120 countries. In some cases this has meant further cuts of up to 20%. although the HP compensation committee increased his bonus by the same amount. since 1 September 2009 the company has been incorporated in Ireland with its global headquarters located in Chicago. Following the acquisition of EDS. Revenue Operating income Net income ▼ US$ 21. Accenture's current clients include 96 of the Fortune Global 100 and more than three quarters of the Fortune Global 500.589 billion (2009) . Accenture is a Fortune Global 500 company. As of 2009. technology consulting and technology outsourcing company. Hurd has forecast that in the plummeting global economy of 2009 HP's sales could drop as much as 5%.a pay cut of 20% in his base salary. COMPETITORS ACN(Accenture PLC Irland) : • Accenture plc (NYSE: ACN) is a global management consulting.

the company is one of the largest technological corporations in the world. United States. servers. Michael Dell. Dell also sells HDTVs. Dell is listed at #38 on the Fortune 500 (2010). cameras.Total assets Total equity ▲ US$ 12. network switches. software. printers. The company is well known for its innovations in supply chain management and electronic commerce. Dell has grown by both organic and inorganic means since its inception—notable mergers and acquisitions including Alienware (2006) and Perot Systems (2009).255 billion (2009) ▲ US$ 2. Texas. As of 2009. Revenue ▼ $52. is a multinational information technology corporation based in Round Rock. : Dell Inc.000 people worldwide. Bearing the name of its founder. data storage devices. Fortune also lists Dell as the #5 most admired company in its industry. sells and supports computers and related products and services. that develops. the company sold personal computers. MP3 players and other electronics built by other manufacturers.886 billion (2009) • Dell Inc. and computer peripherals.902 billion (2010) . employing more than 96.

This is the second largest acquisition by IBM. North Castle. IBM is one of the few information technology companies with a continuous history dating back to the 19th century. IBM is the world's fourth largest technology company and the second most valuable by global brand (after Coca-Cola). IBM manufactures and sells computer hardware and software (with a focus on the latter). At the end of May 2010.172 billion (2010) ▼ $1. United States. hosting services. New York.Operating income Net income ▼ $2.4 billion. and consulting services in areas ranging from mainframe computers to nanotechnology. IBM has been well known through most of its recent history as the world's largest computer company and systems integrator. With . and offers infrastructure services.652 billion (2010) ▲ $5.641 billion (2010 • IBM(International Business Machines) : International Business Machines (IBM) (NYSE: IBM) is a multinational computer. IBM bought the Sterling Commerce Unit from AT&T for about $1. technology and IT consulting corporation headquartered in Armonk.433 billion (2010) Total assets Total equity ▲ $33.

As a chip maker. computer software. Fortune magazine named Apple the most admired company in the United States in 2008. IBM holds more patents than any other U. nine National Medals of Technology. (previously Apple Computer. and personal computers. and five National Medals of Science. the iPhone and the iPad. The company's best-known hardware products include the Macintosh computers. • Apple Inc. four Turing Awards. based technology company and has eight research laboratories worldwide. consultants. IBM employees have earned five Nobel Prizes. IBM has been among the Worldwide Top 20 Semiconductor Sales Leaders in past years. the iPod. and in the world in 2008. . and 2010.) is an American multinational corporation that designs and markets consumer electronics. 2009. Apple Inc.S.000 employees worldwide.almost 400. and sales professionals in over 200 countries. engineers. IBM is second largest (by market capitalisation) and the second most profitable information technology and services employer in the world according to the Forbes 2000 list with sales of greater than 100 billion US dollars. Inc. The company has scientists.

Opportunities and Threats are listed in the example SWOT analysis below: . Weaknesses. SWOT analysis is an important tool for auditing the overall strategic position of a business and its environment. Opportunities and Threats. Some of the key areas to consider when identifying and evaluating Strengths. Weaknesses.SWOT ANALYSIS SWOT is an abbreviation for Strengths.

The company is the largest player in the inkjet printer and laser printer market. imaging and printing products.HP SWOT ANALYSIS  Strengths : Hewlett-Packard (HP) is a global provider of personal systems. HP is one of the major companies in the enterprise storage and servers markets. and technology solutions. . The company is also one of the market leaders in the global PC market.

The increase in the company’s revenue was mainly due to strong growth in international sales. not exactly a stellar performance.5% over 2007. That means future quarters carry some real risk. Weaknesses : Internal control issues The HP operations with the most exposure to business spending are its printer division and server division. an increase of 13.  Lack of in-house management consulting division No aggressive investments in R&D compared to historical spending Unrest among internal employees due to pay cuts and lack of "people care". HP's numbers are not nearly as good as they appear on the top line. especially if business IT spending keeps dropping. Sales in each of these were down 1%.The company recorded revenues of $118.364 million during the financial year ended October 2008 (FY2008). Intellectual Capital is under estimated No Good People retention policy or HR practices to ensure IC is protected .

Russia. Opportunities : Emerging markets. and China e-Commerce expansion Restructuring of internal IT structure Imaging and printing businesses  Threats : Intense competition from PC manufacturers Increasing competition on imaging and printing Slowdown in economic conditions in US. India. Europe Product recalls and supply chain disruptions . particularly BRIC countries: In economics. BRIC (typically rendered as "the BRICs" or "the BRIC countries") is a grouping acronym that refers to the related economies of Brazil.

The basic idea behind it is that the bigger the market share a product has or the faster the product’s market grows the better it is for the company.BCG Matrix The BCG (Boston Consulting Group) matrix is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. To ensure long-term value creation. Low market share) Question Marks (=High growth. It has two dimensions: market share and market growth. Low market share) 4) . Placing the products in the BCG matrix results in four categories in a portfolio of a company: 1) Stars (=High growth. High Market share) Cash cows (=Low growth. a company should have a portfolio of products that contains both high-growth products in need of cash inputs and lowgrowth products that generate a lot of cash. High market share) 2) 3) Dogs (=Low growth.

Goldman Sachs Group Inc. the world’s largest IT supplier. Global spending on information technology will rise 5 percent in 2010. corporate buyers are upgrading the servers used to run their businesses after delaying purchases last year. .  Cash Cows : PDAs of Hp were growing in 2002 but in 2010 they have become cash cows. At the same time. with HewlettPackard. predicted. among the biggest beneficiaries. Star products of Hewlett – Packard : Hewlett-Packard is seeing growth in demand for PCs and printers. which represent more than half of sales.

 Question mark : Sometimes the competitors of Hewlett packard such as dell charge their products at low cost which make HP products question mark products.  Dogs : Compaq Deskpro • Compaq Evo • Compaq Portable • Compaq ProLinea • Compaq ProSignia • Compaq SystemPro • Jornada • Omnibook • iPod+HP These are the products which had low market share as well low business growth hence Hp had to discontinue these products. ANSOFF Matrix .

• Market penetration .Ansoff matrix is a tool that helps businesses decide their product and market growth strategy. This matrix suggests that a business’s attempts to grow depend on whether it markets new or existing products in new or existing markets.

A market penetration marketing strategy is very much about “business as usual”. It is unlikely. Secure dominance of growth markets. 3. . therefore. 2. It is likely to have good information on competitors and on customer needs. that this strategy will require much investment in new market research. this would require a much more aggressive promotional campaign. • Product development Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. advertising. Restructure a mature market by driving out competitors. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets. Market penetration seeks to achieve four main objectives: 1. The business is focusing on markets and products it knows well.Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. supported by a pricing strategy designed to make the market unattractive for competitors 4. sales promotion and perhaps more resources dedicated to personal selling. Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies. Increase usage by existing customers – for example by introducing loyalty schemes.

for example exporting the product to a new country 2) New product dimensions or packaging: for example 3) New distribution channels. therefore.• Diversification Diversification is the name given to the growth strategy where a business markets new products in new markets. There are many possible ways of approaching this strategy. • Market development Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. including: 1) New geographical markets. For a business to adopt a diversification strategy. This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience. Ansoff matrix for Hewlett Packard : . it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks.

• Product development : After merger Hp improved its product line with printers. scanners.• Market penetration : Hp merged with Compaq and brought about market penetration. • Diversification: Hp has a very high market share for its printers and servers. • Market development : It means selling an existing product in new market. PORTER’S FIVE FORCES MODEL . It has also captured market share for net-books. most importantly Servers.

Porter explains that there are five forces that determine industry attractiveness and long-run industry profitability. These five "competitive forces" are • The threat of entry of new competitors (new entrants) .

Android can be the potential competitor for Hp ipad. But they are the strongest companies of all. It has all together different products.  The threat of substitutes: Hp has very few competitors.  Bargaining power of buyers: . Apple is one of them.efficient teams for every department. So to remain in the market Hp will have to be continuously innovative.• The threat of substitutes • The bargaining power of buyers • The bargaining power of suppliers • The degree of rivalry between existing competitors Applying Porter’s Five Forces Model For Hp  Threat of entry of new competitors: Companies like android are trying to beat Hp.

there exists some amount of rivalry. there are not only few buyers who can dominate Hp prices. .  The degree of rivalry between existing competitors : Hp has a strong competition from all of its competitors.Hp has a wide range of products.  Bargaining power of sellers: As explained above Hp has wide range of products and it is selling its products in nearly every part of the world there is not the dominance of sellers. Also it has occupied a very large no. of people. So. So.

Also It should try to change its weaknesses as have been explained in SWOT analysis into strengths. Although it has managed to capture large number of people it should focus on marketing of its products so as to have consumers’ share of mind. Print ads . it has to continuously be innovative in order to survive in the market. Accenture and IBM. However it is facing a very strong competition from apple.Recommendations Hewlett-Packard (NYSE: HPQ) is a diversified technology company that has reached several key milestones in recent years. In this scenario.

visual. It was released in the May 2010. Business sector is Home electronics & audio. Jean-François Sacco Creative Director: Eric Pierre Copywriter: Vincent Pedrocchi Art Director: Cedric Moutaud Photographer: Joseph Ford Country: France The commercial titled Panda was done by CLM BBDO / Boulogne Billancourt advertising agency for HP (HEWLETT-PACKARD company) in France. .Credits & Description: Client: HP Agency: CLM BBDO / Boulogne Billancourt Executive Creative Director: Gilles Fichteberg.

and touch screens. Vyomesh Joshi. with launch printers built for smartphones. Hewlett-Packard is reportedly set to unveil printers designed to work with hand-held devices. 06. The New York Times reported that H-Ps printing chief.S. The Times says this means the printers will give people new ways to print from web services like Google ( GOOG - . Equities HP Ready To Print From The Palm Of Your Hand MarketNewsVideo. 06:10 PM EDT The computer maker is said to be launching a printer designed for mobile devices.com .07.10. The Times reports that printers will have their own Web access.New HP printers can print from smartphones U. e-mail addresses.

people ) Docs as well as from smartphones like Apple ( AAPL news . . and Hewlett-Packard ( HPQ news .news .people )'s iPhone The printers will sell for $99 to $400.people ) expects to sell more than 15 million of them by next year.

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