Core Competency

Technology:
The most significant HP core competency is its technological skills. Each year, the
company spends over a billion dollars on research and innovation. In addition, as of
2017, it had at least 18000 patents in its global patent portfolio..
HRM:
In the twenty-first century, skilled human resources are a crucial asset for any brand.
The company places a lot of emphasis on the recruitment, retention, and training of
competent workers, with 49000 employees as of 2017.
Brand Image:
HP has maintained a strong brand image which depends upon its innovative
technological capabilities and focuses on research and development.

HP VRIO Analysis:
Resources/Capabilities of Hewlett Packard
Global Presence:
Apart from US, HP pays income taxes in 58 other countries. It is a global brand that
targets developed as well as developing countries. Its global presence provides it
access to a large and global population of customers.
Brand image:
HP has maintained a strong brand image as an innovative technology brand. A good
and strong brand image has led to higher customer loyalty and popularity.
Product portfolio:
HP has managed a very large product portfolio of laptops, desktop computers,
printing, imaging as well as other related technologies. A large and varied product
portfolio means access to a large pool of customers of varying compositions. Its
products are made for both the higher-end and lower-end customer segments.
Customer loyalty:
HP has a very large customer base. It enjoys high-level customer loyalty because of
its innovative brand image and technology.
Technological innovation:
HP has maintained a heavy focus on technological innovation. It spends a heavy sum
each year on research and development. For 2015, 2016, and 2017, its expenditure
on research and development was 1.2 Billion dollars.

Resource/Capability Valuable Rare Inimitable Organized Implication

 Global Presence Yes No No Yes Temporary Advantage

Brand Image Yes Yes Yes Yes Competitive advantage

product portfolio Yes Yes No Yes Temporary advantage

Customer loyalty Yes Yes Yes Yes Competitive advantage

Technological innovation Yes Yes Yes Yes Competitive advantage

Value Chain Analysis

The value chain plays a critical role in increasing the productivity of a business.
Michael Porter’s value chain model helps managers understand the role of the value
chain and manage it at each and every stage. From product conception to final sales
and after-sales service, all the stages are a part of the value chain, and managing it
strategically helps create superior value.

Primary Activities:

Inbound logistics:

–Only a small portion of HP's branded items are made in-house; the others are
produced by outside manufacturers (OMs). In some cases, it merely resells the
goods created by outside suppliers. Its distribution and inventory management
strategies have allowed it to keep holding periods to a minimum. According to HP,
"Like other players in the information technology ("IT") industry, we typically acquire
materials and components through a combination of blanket and scheduled
purchase orders to support our demand requirements for periods averaging 90 to
120 days," the company's annual report states. Due to shorter inventory holding
times, HP does not hold onto supplies supplied by its suppliers for very long before
shipping them out quickly from its distribution centers.

Operation:
With worldwide activities, HP is a recognized brand. It is subject to income tax in 58
more countries in addition to the US. Its largest market is the US. From Africa to the
Americas, Asia Pacific, Europe, and the Middle East, it has offices all over the world.

Outbound logistics: –

HP has brand resellers and distribution partners all over the world who resell its
products to clients in every country. HP doesn't keep its stock around for very long.
Building items to order and customizing products to order are the two approaches it
utilizes to meet demand. This has enabled them to produce a large number of basic
product combinations while maximizing manufacturing and logistics efficiencies. It
receives its items quickly before distributing them through its distributors to
customers all around the world.

Marketing and sales:

Because of the growing level of competition in the computing sector, companies are
spending more on product marketing. HP also makes significant investments in its
goods' marketing and promotion. It markets its brand through both conventional and
digital methods. It spent $544 million on advertising in 2017.

Support Activities:

Procurement:

The supply chain's procurement process is crucial, and HP has contracted out the
majority of its manufacturing to outside suppliers. It has established procurement
contracts with numerous outside vendors and has a procurement unit to handle all
the procurement.

Technology:

HP is a technology brand that sells technology items and significantly relies on

technology for supply, production, and marketing tasks. It also makes significant
research and development investments, It has spent close to 1.2 billion dollars on
R&D during the past three years. Investment in technical innovation is now necessary
to stay ahead of the competition due to increased competition.

HRM:

In the technology sector, having skilled people resources is essential for any brand to
experience rapid growth. It had 49000 employees as of 2017. Additionally, it invests
a lot of money in employee hiring, retention, and training. HP has also embraced
advanced training programs for its staff because HR management has become
crucial to the development of a technology brand.

HRM:

In the technology sector, having skilled people resources is essential for any brand to
experience rapid growth. It had 49000 employees as of 2017. Additionally, it invests
a lot of money in employee hiring, retention, and training. HP has also embraced
advanced training programs for its staff because HR management has become
crucial to the development of technology.

Firm Infrastructure:-

The management of a company's infrastructure is equally important to managing a

brand. The learning and innovation culture of HP has been managed. In 2015, HP
split into two. The computer and printing industries are currently governed by HP.
Personal Systems, Printing, and Corporate Investments are the three business
segments that make up its operations

The personal systems division provides commercial and consumer personal

computers ("PCs"), workstations, thin clients, commercial tablets, mobility devices,
retail point-of-sale ("POS") systems, displays, and other related accessories,
software, support, and services for the commercial and consumer markets,
according to its 2017 annual report.

The printing segment offers hardware, supplies, solutions, and services for both
personal and business printers, as well as scanning equipment. Corporate
investments consist of HP Labs and particular initiatives for company incubation.

Growth Opportunities:

Product Innovation:

The makers of laptops and desktop computers have great potential thanks to
product innovation. The reason for this is that consumers' tastes and preferences
are always changing, forcing firms to develop their products to stay competitive.
Since they need to be active all day, they prefer lighter and more efficient items. The
need for compact laptops has increased as mobility needs have grown. Product
innovation is more important than ever.

Digital Marketing:
There are numerous new prospects for brand growth provided by digital marketing.
Brands now have new chances to sell their products to a wider customer base
because to the development of digital technologies. The brand has a fantastic
potential to use digital channels to communicate with its customers as well as
implement new and enhanced marketing and customer engagement tactics. A brand
has a huge chance to improve consumer experiences and engage its audience in
novel ways thanks to new technologies like AI.

Supply Chain Digitization:

The supply chain can become more efficient through digitization, which can also
save costs and improve connections with customers and suppliers. In order to gain a
competitive advantage in the modern, fiercely competitive technology sector, it is
crucial to carefully manage the supply chain. Additionally, digitizing the supply chain
will save money while assisting in ensuring the timely availability of raw materials.

Diversification:

Increasing HP's brand visibility through diversification is also possible. It is a market

leader in the laptop and PC sector and has the potential to expand into other markets
like cloud computing and other tech-related areas, which will help it expand its
operations. There are several avenues accessible for HP to pursue as the technology
sector rapidly develops. Being a financially sound company, it can simply expand into
other industries and open up new revenue streams for itself. Additionally, this will
lessen its reliance on the PC industry.