HP as a product focused company where service as well matters to a great magnitude will

have to maintain a stability in the product quality as well as service quality it offers the clients.

Not emphasizing on costs of inventory will lead the corporation to massive loses as well as

unsuccessful strategies. Moreover, henceforth decreasing the cost inventory is a fundamental

component. However, quick delivery of quality products is as well vital to increase the order

winning aspect. To contest with its rival's delivery promptness is the strength that HP can

employ in the long term. Furthermore, to enhance optimal profits of the corporation will have to

build approaches to reduce its costs of inventory as well as parallel to working on delivery

speediness. Either of the two cannot be overlooked or forfeited for the other. Moreover, HP

would oblige allying its capability, scheduling as well as management of inventory in terms of

finished products to get a safe profitable position (Calloni et al., 2005). For this the reducing

costs of inventory as well as sustaining the delivery promptness equally are vital.

Paying a premium price for the product as well as service depends on several elements

for example exclusive feature, easy availability, reputation of brand, good sale, and after-sale

service, as well as fast delivery (Calloni et al., 2005). Moreover, depending on the customer’s

need he will be willing to pay a premium price for the quick delivery of a product as well as

service he is purchasing. However, I would pay a premium price for timely delivery if I desired

that product as well as service promptly or it contains my essential or urgent need. Furthermore,

delivery services of food, prompt medical care for an acute patient are cases wherever the client

can pay high prices. Also depending on the situation, this factor may vary. For example, If I

order a refrigerator, and I already have an old one in a working condition, I may not want to may

more or an early delivery. But if I order it when my current refrigerator is not working, or I do
not have one then I will be ready to pay the premium price for the early delivery service provided

to me.

References:

Calloni, G., de Montgros, X., Slagmulder, R., Van Wassenhove, L., Wright, L. (2005). Inventory-
Driven Costs.  Harvard Business Review.  Retrieved from: https://hbr.org/2005/03/inventory-driven-
costs