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.
 COMPANY PROFILE

Hewlett-Packard Company
Public (NYSE: HPQ)
Type
Dow Jones Industrial Average component

Computer Software
IT consulting
IT Services
Industry
Computer Systems
Computer Peripherals

Founded Palo Alto, California (1939)

Bill Hewlett
Founder(s)
David Packard

Headquarters Palo Alto, California, USA

Area served Worldwide

Mark V. Hurd
(President, CEO & Chairman)
Key people
Catherine A. Lesjak
(CFO)
 Computer Monitors
Digital Cameras
Enterprise Software
Indigo Digital Press
Mobile Phones
Networking
Personal Computers and Laptops
Products Personal Digital Assistants
Printers
Scanners
Servers
Storage
Televisions
Telecommunications hardware and software

Revenue ▼ US$ 114.552 billion (2009)

Operating
▲ US$ 10.136 billion (2009)
income

Net income ▲ US$ 9.415 billion (2009)

Total assets ▲ US$ 52.539 billion (2009)

Total equity ▲ US$ 38.942 billion (2009)

Employees 310,000 (after 3Com acquisition)(2009)

Subsidiaries Compaq
Compaq Computer Corporation is an
American personal computer company
founded in 1982. Once the largest supplier
of personal computing systems in the world,
[1]
Compaq existed as an independent
corporation until 2002, when it was acquired
for $25 billion by Hewlett-Packard.

Snapfish
Snapfish is a web-based photo sharing and
photo printing service currently owned by
Hewlett-Packard.

HP Labs
HP Labs (or HP Laboratories) is the
exploratory and advanced research group
for Hewlett-Packard. The lab has some 600
researchers[1]in seven locations throughout
the world.

ProCurve
HP Networking is the networking division of HP,
formerly known as HP ProCurve Networking.

HP Enterprise Services
HP Enterprise Services, is a global business and
technology services company
 VoodooPC
Voodoo Computers Inc. or VoodooPC is a luxury
personal computer manufacturer owned by Hewlett
Packard

Palm, Inc.
Palm, Inc. is a smartphone manufacturer On April 28,
2010, HP announced that it had agreed to acquire Palm
for $1.2 billion

Website HP.com
 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
 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).

Photosmart Printers

Hewlett-Packard's line of digital cameras and photo printers is called

Photosmart.
Designjet printers

Deskjet printers

DeskJet is a brand name for inkjet printers manufactured by Hewlett-

Packard Company.

• Digital Cameras :
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

 Mark Vincent Hurd

January 1, 1957 (age 53)

Born
Flushing, New York, USA

Residence Palo Alto, California, USA

Browning School
Archbishop Curley-Notre Dame High
Education School Bachelor of Business
Administration from Baylor University in
1979

President, CEO and Chairman, Hewlett-

Occupation
Packard
 Spouse(s) Paula Kalupa

Mark Vincent Hurd is the chairman, chief executive officer, and

president of Hewlett-Packard, the largest information technology
company in the world. Hurd succeeded CFO Robert Wayman, who
served as interim CEO from February 10, 2005 to March 28, 2005 after
former CEO Carly Fiorina stepped down. On September 22, 2006, Hurd
succeeded Patricia C. Dunn as chairman after she resigned as a result of
the pretexting controversy.

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
increasing its 2008 market share in inkjet and laser printers to 46% and
50.5%, 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.

Hurd has a reputation for cost-cutting. He laid off 15,200 workers—10%

of the workforce—shortly after becoming CEO. Other cost-cutting
moves include cutting the IT department from 19,000 to 8,000, reducing
the number of software applications that HP uses from 6,000 to 1,500,
and consolidating the HP's 85 data centers to 6. During the recent
recession Mark Hurd imposed a 5% pay cut on all employees, where
legally permitted, and removed many benefits. Mark Hurd himself took
a pay cut of 20% in his base salary, although the HP compensation
committee increased his bonus by the same amount. Following the
acquisition of EDS, Mark Hurd instructed that all EDS staff should have
their pay adjusted to match that of their HP counterparts. In some cases
this has meant further cuts of up to 20%. Hurd has forecast that in the
plummeting global economy of 2009 HP's sales could drop as much as
5%, but its profits will increase by nearly 6%.

COMPETITORS

• ACN(Accenture PLC Irland) :

Accenture plc (NYSE: ACN) is a global management consulting,
technology consulting and technology outsourcing company.
Previously incorporated in Bermuda, since 1 September 2009 the
company has been incorporated in Ireland with its global
headquarters located in Chicago. It is said to be the largest consulting
firm in the world, as well as being a global player within the
technology consulting industry. Accenture is a Fortune Global 500
company. As of 2009, the company has over 181,000 employees in
200 locations in over 120 countries. Accenture's current clients
include 96 of the Fortune Global 100 and more than three quarters of
the Fortune Global 500.

▼ US$ 21.58 billion

Revenue
(2009)

Operating ▼ US$ 2.643 billion

income (2009)

▼ US$ 1.589 billion

Net income
(2009)
 ▲ US$ 12.255 billion
Total assets
(2009)

▲ US$ 2.886 billion

Total equity
(2009)

• Dell Inc. :
Dell Inc. is a multinational information technology corporation
based in Round Rock, Texas, United States, that develops, sells
and supports computers and related products and services. Bearing
the name of its founder, Michael Dell, the company is one of the
largest technological corporations in the world, employing more
than 96,000 people worldwide. Dell is listed at #38 on the
Fortune 500 (2010). Fortune also lists Dell as the #5 most admired
company in its industry.

Dell has grown by both organic and inorganic means since its
inception—notable mergers and acquisitions including Alienware
(2006) and Perot Systems (2009). As of 2009, the company sold
personal computers, servers, data storage devices, network
switches, software, and computer peripherals. Dell also sells
HDTVs, cameras, printers, MP3 players and other electronics built
by other manufacturers. The company is well known for its
innovations in supply chain management and electronic commerce.

▼ $52.902
Revenue
billion (2010)
 Operating ▼ $2.172 billion
income (2010)

▼ $1.433 billion
Net income
(2010)

▲ $33.652
Total assets
billion (2010)

▲ $5.641 billion
Total equity
(2010

• IBM(International Business Machines) :

International Business Machines (IBM) (NYSE: IBM) is a
multinational computer, technology and IT consulting corporation
headquartered in Armonk, North Castle, New York, United States.
IBM is the world's fourth largest technology company and the
second most valuable by global brand (after Coca-Cola). IBM is
one of the few information technology companies with a
continuous history dating back to the 19th century. IBM
manufactures and sells computer hardware and software (with a
focus on the latter), and offers infrastructure services, hosting
services, and consulting services in areas ranging from mainframe
computers to nanotechnology. At the end of May 2010, IBM
bought the Sterling Commerce Unit from AT&T for about $1.4
billion. This is the second largest acquisition by IBM.

IBM has been well known through most of its recent history as the
world's largest computer company and systems integrator. With
almost 400,000 employees worldwide, 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. IBM holds more patents than any other U.S.
based technology company and has eight research laboratories
worldwide. The company has scientists, engineers, consultants,
and sales professionals in over 200 countries. IBM employees have
earned five Nobel Prizes, four Turing Awards, nine National
Medals of Technology, and five National Medals of Science. As a
chip maker, IBM has been among the Worldwide Top 20
Semiconductor Sales Leaders in past years.

• Apple Inc.
Apple Inc. (previously Apple Computer, Inc.) is an American
multinational corporation that designs and markets consumer
electronics, computer software, and personal computers. The
company's best-known hardware products include the Macintosh
computers, the iPod, the iPhone and the iPad.

Fortune magazine named Apple the most admired company in the

United States in 2008, and in the world in 2008, 2009, and 2010.
 SWOT ANALYSIS

SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and

Threats.

SWOT analysis is an important tool for auditing the overall strategic

position of a business and its environment.

Some of the key areas to consider when identifying and evaluating

Strengths, Weaknesses, Opportunities and Threats are listed in the
example SWOT analysis below:
 HP SWOT ANALYSIS

 Strengths :
Hewlett-Packard (HP) is a global provider of personal systems,
imaging and printing products, and technology solutions. The
company is the largest player in the inkjet printer and laser printer
market. HP is one of the major companies in the enterprise storage
and servers markets. The company is also one of the market
leaders in the global PC market.
 The company recorded revenues of $118,364 million during the
financial year ended October 2008 (FY2008), an increase of 13.5%
over 2007. The increase in the company’s revenue was mainly due
to strong growth in international sales.

 Weaknesses :

Internal control issues

The HP operations with the most exposure to business spending

are its printer division and server division. Sales in each of these
were down 1%, not exactly a stellar performance.

HP's numbers are not nearly as good as they appear on the top line.
That means future quarters carry some real risk, especially if
business IT spending keeps dropping.

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". Intellectual Capital is under estimated

No Good People retention policy or HR practices to ensure IC is

protected
 Opportunities :

Emerging markets, 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, Russia, India, 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, Europe

Product recalls and supply chain disruptions

 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, a company should have a portfolio of products that
contains both high-growth products in need of cash inputs and low-
growth products that generate a lot of cash. It has two dimensions:
market share and market growth. 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.
Placing the products in the BCG matrix results in four categories in a
portfolio of a company:
1) Stars (=High growth, High Market share)

2) Cash cows (=Low growth, High market share)

3) Dogs (=Low growth, Low market share)

4) Question Marks (=High growth, Low market share)

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

 Cash Cows :

PDAs of Hp were growing in 2002 but in 2010 they have become

cash cows.
 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
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.

• Market penetration
 Market penetration is the name given to a growth strategy where
the business focuses on selling existing products into existing
markets.

Market penetration seeks to achieve four main objectives:

1. Maintain or increase the market share of current products – this

can be achieved by a combination of competitive pricing
strategies, advertising, sales promotion and perhaps more
resources dedicated to personal selling.

2. Secure dominance of growth markets.

3. Restructure a mature market by driving out competitors; this
would require a much more aggressive promotional campaign,
supported by a pricing strategy designed to make the market
unattractive for competitors
4. Increase usage by existing customers – for example by
introducing loyalty schemes. A market penetration marketing
strategy is very much about “business as usual”. The business is
focusing on markets and products it knows well. It is likely to
have good information on competitors and on customer needs. It
is unlikely, therefore, that this strategy will require much
investment in new market research.

• Product development

Product development is the name given to a growth strategy

where a business aims to introduce new products into existing
markets. This strategy may require the development of new
competencies and requires the business to develop modified
products which can appeal to existing markets.
• Diversification

Diversification is the name given to the growth strategy where a

business markets new products in new markets. This is an
inherently more risk strategy because the business is moving into
markets in which it has little or no experience. For a business to
adopt a diversification strategy, therefore, it must have a clear idea
about what it expects to gain from the strategy and an honest
assessment of the risks.

• Market development

Market development is the name given to a growth strategy where

the business seeks to sell its existing products into new markets.

There are many possible ways of approaching this strategy,

including:

1) New geographical markets; for example exporting the

product to a new country
2) New product dimensions or packaging: for example
3) New distribution channels.

Ansoff matrix for Hewlett Packard :

• Market penetration :
Hp merged with Compaq and brought about market
penetration.

• Product development :
After merger Hp improved its product line with printers,
scanners, most importantly Servers.

• Market development :
It means selling an existing product in new market.

• Diversification:
Hp has a very high market share for its printers and servers.
It has also captured market share for net-books.

PORTER’S FIVE FORCES MODEL

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)

• 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. So to remain in the

market Hp will have to be continuously innovative. Android can be
the potential competitor for Hp ipad.

 The threat of substitutes:

Hp has very few competitors. But they are the strongest companies
of all. Apple is one of them. It has all together different
products,efficient teams for every department.

 Bargaining power of buyers:

 Hp has a wide range of products. Also it has occupied a very large
no. of people. So, there are not only few buyers who can dominate
Hp prices.

 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.

 The degree of rivalry between existing competitors :

Hp has a strong competition from all of its competitors. So, there

exists some amount of rivalry.
 Recommendations

Hewlett-Packard (NYSE: HPQ) is a diversified technology

company that has reached several key milestones in recent years.

However it is facing a very strong competition from apple,

Accenture and IBM. In this scenario, it has to continuously be
innovative in order to survive in the market. 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
Credits & Description:

Client: HP
Agency: CLM BBDO / Boulogne Billancourt
Executive Creative Director: Gilles Fichteberg, 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. It was released in the May 2010. Business sector is
Home electronics & audio- visual.
 New HP printers can print from smartphones

U.S. Equities

HP Ready To Print From The Palm Of Your Hand

MarketNewsVideo.com , 06.07.10, 06:10 PM EDT

The computer maker is said to be launching a printer designed for
mobile devices.

Hewlett-Packard is reportedly set to unveil printers designed to work

with hand-held devices. The New York Times reported that H-Ps printing
chief, Vyomesh Joshi, with launch printers built for smartphones.

The Times reports that printers will have their own Web access, e-mail
addresses, and touch screens. The Times says this means the printers will
give people new ways to print from web services like Google ( GOOG -
news - people ) Docs as well as from smartphones like Apple ( AAPL -
news - people )'s iPhone

The printers will sell for $99 to $400, and Hewlett-Packard ( HPQ -
news - people ) expects to sell more than 15 million of them by next
year.