Course: Business Model Development and

Innovation
 Value chain analysis of HP.
Primary Activities
Value chain plays a crucial contribution to the performance of any
business. Michael Porter's model of value chain assists managers to understand
the importance of the value chain and how to manage it at every step. From the
initial conception of a product to final sales and post sales service, all phases are
component of the value chain, and managing it effectively can help to create
value. This analysis can help managers understand the way in which the value
chain can be improved to produce greater value while reducing cost of production

Inbound Logistics
HP produces a tiny portion of its brand-name product line and the remainder are
made by outsourced producers (OMs). In some instances, HP just resells the
products produced by the third-party suppliers. The management of its inventory
and distribution strategies have contributed to HP reduce its inventory holding times
to a minimum. Because the time for holding inventory is minimal, HP does not keep
the materials it receives from its suppliers for too long. They are quickly shipped
from HP warehouses for distribution to retailers as well as other customers.

Outbound Logistics
HP does not keep its inventory for very long. HP has two ways to meet demand,
which includes making products to order and configuring the products to
purchase. This has allowed it to maximize the efficiency of its manufacturing and
logistics by producing large quantities of standard product configurations. It is able
to deliver its products quickly before it distributes it to its clients around the world
via its distribution partners.

Operations
HP is a worldwide brand that has operations all over the world. Outside of United
States, it is subject to income tax in 58 additional countries. US is the biggest
market. There are several offices around the world that span from Africa up to
Americas, Asia Pacific, Europe and Middle East.

Marketing and Sales

The computer industry has become very competitive, which has resulted in
companies investing more money in marketing of their goods. HP is also investing a
lot in the promotion and marketing of its products. HP makes use of traditional and
digital channels to promote its brand.

Support Activities

Firm Infrastructure

HP has created an environment that encourages learning and innovating. HP was

split into two companies in the year 2015. HP is now a printing and computer
business. Its business us split into three parts, which include Personal Systems,
Printing, and Corporate Investments.
Technology

HP is a tech brand and specializes in technology-related products, as well as

employs technology extensively in its supply, production and marketing tasks. It
also invests a lot on the research and development. In the last three years, its
expenditure on Research & Development has been approximately 1.2 million
dollars. With the increasing competition, investing in technological advancement is
essential to stay ahead of the rest.

HRM

Human resources that are skilled and competent is crucial for any business to
develop rapidly in the field of technology. In 2017, the company employed 49000
employees. HP also invests heavily in hiring, retention, and training of
employees. Because HR management is now a key element for the development of
a tech company, HP has also adopted advanced training courses for employees.

Procurement

HP has contracted the bulk of its manufacturing work to external suppliers. It has a
function for procurement to handle all procurement. The company has also signed
procurement contracts with various external vendors.