Hp's Business Strategy Report

Executive Summary

Introduction

The report deals with the strategic analysis of Hewlett-Packard (HP) to underline the growth of the company over the years as well as the strategic issues it is facing at present. HP is now at a critical moment that HP decided to split itself into two new companies. For the split-off strategy, HP implemented many strategies in different aspects for preparation. The paper has deeply evaluated the strategy HP is using, specially the spilt-off strategy, based on the performance and result of the strategies. The paper has also developed feasible plans for the business based on internal and external environment analysis to remain and increase competiveness in the market in the future.

Content

The report is divided into three parts, which are Strategic Analysis, Strategic Development and Strategic Implementation. In strategic analysis, full internal and external analysis has been done to look for market opportunities which could be appropriated and profitable for HP. In strategic development, HP existing strategy has been evaluated and summarized. New strategy/Improvements have been developed and ranked to replace the poor strategy. In strategic implementation, a complete strategy schedule has been made for HP which included the risks and controls of the strategies.

HP should focus on restructure, brand and differentiation strategy. Rather than take the risks of split-off, restructure itself with improving brand name and product differentiation can help HP to maintain long-term competitive advantage and market share.

1.  Strategic Analysis

1.  HP Company Background

HP (Hewlett-Packard) Company is an international information technology enterprise with its headquarters in Pal Alto, California. It specializes in the manufacture of software, hardware, as well as a broad range of services to individual clients, large enterprises, SMEs (small and medium sizes enterprises), government, health, and education sector. (Gibson and Raymond 2005). The major product lines that company offers include industry and enterprise standard servers, computing devices, software, networking products, printers, and imaging products (Glassman, et al. 2005). The company also provides consulting services and is the largest vendor of PCs in the world in terms of unit sales.

1.  Diversified Computer System Industry Profile

The computer industry entails software, hardware, services, as well as a broad range of products. PCs, Tablets, and Desktops are the commonly being used appliances to facilitate in this environment. The major companies that dominate the industry include Dell, HP, Apple, Gateway, and Sony. Moreover, various forces are driving competitiveness in this industry. These include new technology, custom build PCs, reliability, and customer service. Technology is advancing at a rapid pace forcing technology companies to introduce strategies that will help them remain sustainable in the marketplace (Chowdhury 2003). However, the global personal computer sales have been falling from 90 million in 2009 to 76 million in 2013. The introduction of low-cost tablets had hurt PC sales, the inexpensive tablets have become the priority choice of computing device for many people, especially in emerging economies. (BBC, 2014)