dell vs hp

•Hewlett-Packard Company , commonly referred to as HP, is an American multinational information technology corporation headquartered in Palo Alto, California, USA(1939).

•HP is one of the world's largest information technology companies and operates in nearly every country.

•Its founders are bill hewlett and david packard.

•HP specializes in developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services.

•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.

INTRODUCTION

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.

In 1939, Packard and Hewlett established Hewlett-Packard (HP) in Packard's garage with an initial capital investment of US$538.

HP incorporated on August 18, 1947, and went public on November 6, 1957.

Of the many projects they worked on, their very first financially successful product was a precision audio oscillator, the Model HP200A.

One of the company's earliest customers was The Walt Disney Company, which bought eight Model 200B oscillators .(at $71.50 each)

The company was originally rather unfocused, working on a wide range of electronic products for industry and even agriculture. Eventually they elected to focus on high-quality electronic test and measurement equipment.

From the 1940s until well into the 1990s the company concentrated on making electronic test equipment: signal generators, voltmeters, oscilloscopes, frequency counters, thermometers, time standards, wave analyzers, and many other instruments.

A distinguishing feature was pushing the limits of measurement range and accuracy; many HP instruments were more sensitive, accurate, and precise than other comparable equipment.

On september 3,2001 hp has announced that an agreement has been reached with compaq to merge the two companies.In may 2002,after passing a shareholder vote,hp oficially merged with compaq.

PRODUCTS

Computer MonitorsDigital CamerasEnterprise SoftwareIndigo Digital PressMobile PhonesNetworkingPersonal Computers and LaptopsPersonal Digital AssistantsPrintersScannersServersStorageTelevisions

1 .PRINTERS 1.1 LaserJet printers (color and monochrome)1.2 ColorJet printers1.3 PSC/Photosmart All-in-one printers1.4 Photosmart printers 1.4.1 Portable models1.5 HP Photosmart Express Kiosk1.6 HP Photosmart Studio Kiosk1.7 OfficeJet All-in-one printers1.8 Designjet Printers1.9 Deskjet printers1.10 HP Software products

2 .DIGITAL CAMERAS 2.1 Original line2.2 HP E-series2.3 HP M-series2.4 HP R-series

3 .SCANNERS 3.1 Scanjet series

4. PDAs

5.POCKET COMPUTER

5.1 Lx series 5.2 OmniGo series 5.3 Jornada 5.4 iPAQ 6.DESKTOP CALCULATORS AND COMPUTERS

6.1 Computer Terminals 6.2 Plotters 6.3 Pocket calculators

7.BUSINESS DESKTOPS

7.1 HP X-Terminal 7.2 Business Desktop 7.3 HP TouchSmart PC 7.4 HP Brio 7.5 HP VECTRA 7.6 HP e-PC(e-VECTRA)

8.THIN CLIENTS

8.1 BladeSystem 8.2 Thin Client

9 PERSONAL DESKTOPS

9.1 Compaq Presario Desktop 9.2 HP Pavilion 9.3 HP Blackbird 002

10 BUSINESS NOTEBOOKS 10.1 Compaq Evo 10.2 Business Notebook 10.3 HP Mini 10.4 HP ProBook 10.5 HP EliteBook 10.6 Mobile Thin Client

11 PERSONAL NOTEBOOKS

11.1 HP Omnibook 11.2 Compaq Presario 11.3 Pavilion notebooks 11.4 G series 11.5 HP Mini 12 WORKSTATIONS 12.1 PA-RISC based 12.2 Itanium based 12.3 Alpha based (from DEC, via Compaq) 12.4 x86 based 12.5 Blade Workstations

SERVERS

13.1 x86 (Intel & AMD Opteron) based 13.1.1 Entry Level Servers 13.1.2 ProLiant DL Series 13.1.3 ProLiant ML Series 13.1.4 ProLiant BLp blades 13.1.5 ProLIant BLc blades

13.2 Itanium based 13.3 Alpha based 13.4 PA-RISC based

As of 2008, Hewlett-Packard has made a total of 116 acquisitions since 1986. Its first acquisition was the F.L. Moseley Company in 1958. This move enabled HP to enter the plotter business, which was the predecessor to its printer business today. In 1989, HP purchased Apollo Computer for US$476 million,enabling HP to become the largest supplier of computer workstations. In 1995, the company bought another computer manufacturer Convex Computer for US$150 million.In 2000, HP spun off its measurement, chemical and medical businesses into an independent company named Agilent Technologies. The company's largest acquisition came in 2002, when it merged with Compaq, a personal computer manufacturer, for US$25 billion.

LIST OF AQUISITIONS

MARKETING SELLING AND DISTRIBUTION STRATEGIES

MICHAEL MENDENHALL CMO , HP

Telling stories means giving messages in a narrative format.

Telling stories that customers want to hear , when they want to hear and which they want to believe.

Story telling approach makes consumers develop relationship with the brand

Makes the brand efficient , effective and in touch.

MODELS OF ENGAGEMENT

“OPENING DOORS JUST A LITTLE”

Helps harness the talent of the customers

Eg: competition on MTV to design new netbooks

HP’s store in store strategy

It is a mini island within a large retail outlet.

An island that is independent, exclusive to its own products , associates and atmosphere

Aims to provide customers with an experience that exceeds their expectations

MISSION & STRATEGIES STATEMENT

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• Mission Statement:“To provide customers with superb value, high quality, relevant technology, customized systems, superior service and support, and products and services that are easy to purchase and use.”

• Strategy Statement:“To do business with its consumers one-on-one, through the phone or internet.”

Dell’s Strategy – Direct From Dell

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Sales Of Computer Systems Directly To Consumers

Elimination of Retail MiddlemenComputer System Construction Based

Upon Individual Customer Needs• Quick Introduction of

State Of The Art Technology

• Elimination Of Heavy Inventory Investment

DELL PRODUCT MIX

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Product Line

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Target Market

DELL have always been suppliers for businesses and that is the way it is going to be in India. DELL is No.1 in the businesses market, while number four in the consumer market.

By Michael Dell

Effect On Working Capital

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Inventories2009 2008 2007 2006 2005 2004

28-Jan-09 30-Jan-08 Jan-31-07 Feb-1-06 Feb-2-05 Jan-28-04

Days of sales outstanding 32 31 28 29 32 34

Days of supply in inventory 4 3 3 4 5 6

Days in accounts payable 73 70 68 69 58 58

Cash conversion cycle -37 -36 -37 -36 -21 -18

• Reduction Of Inventory

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Company Value

Intangible Value of Dell

(in millions of $)

R & D Expenditures

% of Net Revenue

Dell $463 < 1%

Apple 489 6%

HP 878 4%Source: Dell, Apple, and HP – 10-K filings

Market Capitalization Breakdown

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Server

StoragePOS Software

NotebooksDesktopPeripherals

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Net Revenue(in millions of $)

Performance

Industry Analysis

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Pricing Matrix

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Dell’s Market Segmentation

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Competitor environment Evolving

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Significant growth opportunity for Dell

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PC SUPPLY CHAINS

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Typical PC Supply Chain(Compaq, HP, IBM, etc.)

Customer

DistributionChannels

Manufacturer

Suppliers

PUSH

PULL Customer

Dell

Suppliers

Dell Supply Chain

PUSH

PULL

• PULL PROCESS (REACTIVE PROCESS)• PUSH PROCESS (SPECULATIVE PROCESS)

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Supply Chain Management

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DISTRIBUTION CHANNELS While H-P used to own the #1 spot in the PC

market, Dell took over the top spot in 2003. Dell’s direct distribution model became the envy of all PC manufacturers and made them a darling on Wall Street

direct sales over the internet and phone

* Late and incomplete deliveries * Strained partner relations * No marketing focus (the printer division handled PC marketing)

Probs with HP

If you need to improve your channel performance like H-P, here are six things you can do to improve your top line.

1. Make it a priority. Devote resources to channel management – preferably at least one dedicated manager whose sole responsibility is to manage those relationships and build the marketing programs to drive revenue through the channel.

2. Develop measurements and track performance. Know who your best sales performers are at each point in the channel. By tracking orders, volume and total revenue at each point, you can identify and improve underperforming partners and keep your top performers happy.

3. Communicate! Build relationships at each step of your channel. If you’re not talking with your partners, how can you identify problems and solve them? And how will you know whether your programs are working and how to make them better?

Steps for improvement

Steps for improvement 4. Drive revenue through the channel. Take ownership of the

marketing campaigns that will drive revenue at all levels through the channel. Your partners have to focus on building their own customer base, not marketing just your product (remember that you’re not the only solution they offer).

5. Avoid pricing conflicts. Establish a pricing strategy and stick to it. If channel conflict arises because of price, attempt to resolve it ASAP.

6. Address conflicts swiftly. Since distrust and channel conflict is common, it’s important to address problems quickly to find a solution.

After writing this, it’s even clearer to me why there’s no buzz about channels. Building and managing traditional channels isn’t glamorous and requires a lot of elbow grease. But even though channels have little sizzle in the marketing mix, they’re a big piece of the steak.

DELL VS HP Pricing 1. As both Dell and HP sell their merchandise directly,

they are able to maintain a cheaper price when compared to other manufacturers. In 2009, low-end Dell and HP laptops could be purchased for as low as $399. At retail, HP laptops may cost more.

Promotions 2. Both HP and Dell offer promotions frequently for

their laptops. The better deal can change at anytime, depending on the quality of the promotion.

Aesthetics 3. Both HP and Dell offer a variety of designs and

colors. Dell uses more standard paint on their laptops while HP uses a more glossy substance.

Durability 4. Laptops from Dell and HP are designed to

last a few years (taking into account care and use). Depending on the type of laptop purchased, a limited time warranty is included with both Dell and HP. All warranties can be extended for a price.

Upgrades 5. Lower-end models for both brands have

little to no upgrade options. Users can upgrade the hard drive, video cards and other significant components in mid- to high-end models. Dell and HP both offer upgrade options for a reduced price. Experienced users can install the parts themselves.

The Challenges and Evolution of Marketing

Be Direct: DELL

“It’s amazing to me that our competitors think the customer is the

dealer.” Michael Dell

“Sales Leader: Tops in Global Basis.”

More about DELL & HP


MAJOR FOCUS Dell instead trained his eye on finding the most

efficient way to get tech products into the hands of the consumers.

Perfected the credo— “Cut out the middleman.”

DELL eliminated the need for inventory or middlemen and gave itself a built-in price advantage, which it in part keeps as profit and in part passes on to customers.”


“Selling tech products by telephone and then the Internet… Michael broke the paradigm about how to run a computer business; they haven’t been so great at finding the next paradigm.”

- Business Week


IntroductionDELL did not want the “unsophisticated”

customer.DELL wants to sell to the “educated”

customer.DELL wants the consumer to buy their third

or fourth system from DELL. It’s more profitable and easier.


SWOT Analysis

CustomizationCustomizationPricePriceCustomer Customer FocusedFocusedTechnical Technical KnowledgeKnowledgeMarket Market DiversificationDiversificationStrong Strong Brand/PositioninBrand/PositioninggMedia SavvyMedia SavvyDirect Direct Marketing ModelMarketing ModelNon-myopic Non-myopic strategystrategy

Server MarketServer MarketInternational International strategystrategyProduct Product extensionsextensions

TangibilityTangibilityTechnology Technology MarketMarketCommoditizatioCommoditizationnInventoryInventory

Competition Competition across marketsacross marketsCommodity Commodity pricingpricing

(shrinking (shrinking margins)margins)Complexity of Complexity of Mgmt.Mgmt.Growth Growth exceeding exceeding productivityproductivity

CustomizationCustomizationPricePriceCustomer Customer FocusedFocusedTechnical Technical KnowledgeKnowledgeMarket Market DiversificationDiversificationStrong Strong Brand/PositioningBrand/PositioningMedia SavvyMedia SavvyDirect Marketing Direct Marketing ModelModelNon-myopic Non-myopic strategystrategy

Server MarketServer MarketInternational International strategystrategyAdditional Additional marketsmarketsProduct Product extensionsextensionsStrategic Strategic partnershipspartnerships

Technology Technology MarketMarketInventoryInventory

Competition Competition across marketsacross marketsCommodity Commodity pricingpricing

(shrinking (shrinking margins)margins)Complexity of Complexity of Mgmt.Mgmt.Growth Growth exceeding exceeding productivityproductivity

Business to Consumer Business to BusinessStrengths Opportunities Strengths

Weaknesses Threats Weaknesses Threats

Opportunities


GOLDEN RULES

Three Golden Rules of DELL:

1. Disdain inventory2. Always listen to the customer3. Never sell indirect.


BUILD-TO-ORDER MANUFACTURING AND MASS CUSTOMIZATION

PARTNERSHIP AWITH SUPPLIERS.

DIRECT SALES.

CUSTOMERS SERVICES.

RESEARCH & DEVELOPMENT.

STRATEGIES


DELL RETAIL STRATEGYNow Dell planned to consolidate its supply chain and manufacturing activities globally and venture into retail business in order to regain its leadership status.GOO (Global operation organization) is Dell's center for consolidating its global manufacturing, procurement and supply chain activities. The company aimed to integrate its supply chain and achieve higher efficiency and quality through GOO. Overlapping activities would be eliminated, and new manufacturing and distribution models to focus on the requirements of the customers spread across the world would be introduced as a part of GOO. Analysts said it was time for Dell to move into PC retailing by establishing exclusive stores and selling PCs through retailers. They felt that in order to realize higher returns, Dell should concentrate on providing a better customer experience and introducing path breaking products by investing more in R&D. They were of the view that Dell needed to move from model based on cost control to an innovation based model providing personalized solution to customers. Now Dell mix the direct model with new strategy.


Marketing StrategyHP use the which relies on how their business

customers view and rate their products, this strategy helps them to get constant feed back about their products, and then they try to achieve customers' requirements and give products the support needed in order to establish a strong support system. This strategy also helps to strength the relationship between the company and clients. What separates these companies from each other is the work they do on how they can satisfy their clients, that happens through offering their clients more and more services.


Ethnocentrism Vs PolycentrismDell considers South Asian market similar to

that of US and Europe HP considers this vital market as a separate

entity and hence is targeting it differently. Dell follows principle of ethnocentrism HP is following Polycentrism


Summary

HP vs. Dell. HP’s business has long faced the difficult choice…focusing on grabbing market share or improving profitability.

HP’s approach. Aggressively battling Dell to claim bragging rights as top PC seller.


SummaryHP is backing away from seeking market share at all costs or going all-out to upseat Dell from the top.”

Investors are applauding.” Saying it’s a positive thing for HP.

dell vs hp

Documents

hp pavilion

hp mini

hp vec

hp omnibook

hp elitebook

hp brio

hp probook

hp blackbird