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

TypePublic (NYSE: HPQ)Dow Jones Industrial Average component

Industry

Computer SoftwareIT consultingIT Services

Computer SystemsComputer Peripherals

Founded Palo Alto, California (1939)

Founder(s)Bill HewlettDavid Packard

Headquarters Palo Alto, California, USA

Area served Worldwide

Key people

Mark V. Hurd(President, CEO & Chairman) Catherine A. Lesjak(CFO)

Products

Computer MonitorsDigital CamerasEnterprise SoftwareIndigo Digital PressMobile PhonesNetworkingPersonal Computers and LaptopsPersonal Digital AssistantsPrintersScannersServersStorageTelevisionsTelecommunications hardware and software

Revenue ▼ US$ 114.552 billion (2009)

Operating income

▲ US$ 10.136 billion (2009)

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 CenterHP Quicktest ProfessionalHP Business Process TestingHP Change Impact TestingHP 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

BornJanuary 1, 1957 (age 53)Flushing, New York, USA

Residence Palo Alto, California, USA

Education

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

OccupationPresident, CEO and Chairman, Hewlett-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.

Revenue▼ US$ 21.58 billion (2009)

Operating income

▼ US$ 2.643 billion (2009)

Net income▼ US$ 1.589 billion (2009)

Total assets▲ US$ 12.255 billion (2009)

Total equity▲ US$ 2.886 billion (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.

Revenue▼ $52.902 billion (2010)

Operating income

▼ $2.172 billion (2010)

Net income▼ $1.433 billion (2010)

Total assets▲ $33.652 billion (2010)

Total equity▲ $5.641 billion (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 spendingUnrest 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: HPAgency: CLM BBDO / Boulogne BillancourtExecutive Creative Director: Gilles Fichteberg, Jean-François Sacco Creative Director: Eric Pierre Copywriter: Vincent Pedrocchi Art Director: Cedric MoutaudPhotographer: Joseph FordCountry: 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.