A REPORT

ON

“ESTIMATION OF MARKET SHARE OF HP PRODUCTS

(PRINTING AND PERSONAL COMPUTING SYSTEM) IN THE EDUCATIONAL

INSTITUTIONS AND SME/PSU MARKET SEGMENTS IN KOLKATA”.

Submitted By

Samrat Maity

Enrollment No-14BSP1276

Hewlett Packard India sales Pvt. Ltd.

1

A REPORT

ON

“ESTIMATION OF MARKET SHARE OF HP PRODUCTS

(PRINTING AND PERSONAL COMPUTING SYSTEM) IN THE EDUCATIONAL

INSTITUTIONS AND SME/PSU MARKET SEGMENTS IN KOLKATA”.

Submitted By

Samrat Maity

Hewlett Packard India sales Pvt. Ltd.

The report is submitted in partial fulfilment of the requirement of

PGPM Program of IBS Kolkata.

Distribution list:

Hewlett Packard India sales Pvt. Ltd. IBS Kolkata

Date of submission:

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Authorization

Date: 9.03.2015

To whomsoever it may concern

We are hereby pleased to nominate Mr. Samrat Maity as bona fide summer trainee of Hewlett Packard India Sales Pvt. Ltd. for summer Internship Projects for Channel Business coverage, Kolkata.

Yours Sincerely

For Hewlett-Packard India Sales Pvt. Ltd

Partner Business Manager (East)

Printing & Personal Systems (PPS)

HP India Sales Pvt. Ltd.

Acknowledgement3

I would like to thank my company guide Mr. Joydeep Dhara and my faculty guide Prof. Uddipan Nath who has advised me in preparing this report I am thankful to the employees of Hewlett-Packard India Sales Pvt. Ltd. who has provided data and several insights during the period of summer internship program and also helped me making this report

Executive summary

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As part of my PGPM curriculum, I (Samrat Maity, Enrollment no. 14bsp1276) have done my Summer Internship Program in an Information Technology company Hewlett Packard India

sales Pvt. Ltd. based in DLF IT Park, Block-AF, Tower C, 1st Floor, 08 Major Arterial Road, New

Town, Rajarhat, Kol-700156, West Bengal.0

In this report I will document my experience of working in the company, the knowledge gained, my role as an intern in the company. The project undertaken is based primarily on “Estimation of market share of hp products (printing and personal computing system) in the educational institutions and sme/psu market segments in Kolkata”.

Objective of the Internship:

Estimation of market share of HP products in PPS. To know the Consumer Behavior towards HP product (personal computer, tablet,

printer). Identify the potential buyers for HP.

Methodology used:

Familiarization with HP product (pc, printer, tablet).Gather information about HP. Make a sample questionnaire. Divide the local IT product market into three parts. Collect the buyers address by pin code and street mapping. Go for survey to the local market. Collect the information. Analysis the data. Identify the problem Prepare a solution or recommendation.

Findings and Conclusions:

29 out of 64 respondents i.e. 45% of the organizations who took the survey use HP as their desktop brand.

53 out of 64 respondents i.e. 83% of the c who do not use any laptop. A large number of organizations using only HP as their printer brand. 39 out of 64 respondents i.e. 61% of the organizations do not use any workstation. A large number of respondents like HP as their favorite brand. Hp did not communicate with a large number of respondents. Any Hp partner did not come to a large number of respondents.

Recommendations:

Hp should increase their communication with their customer base. Hp should go and give a sample test to their customer because a large number of

organization do not using any laptop. Hp should increase their advertisements in order to increase their customer strength.

Abstract

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The assigned project titled “Estimation of market share of HP products (printing and personal computing system) in the educational institutions and SME/PSU market segments in Kolkata” will help the viewers and the company as well to measure the efficacy and acceptability of the various products in the product bouquet of the company from the user’s perspective.

During the project exercise technical questions will be administered to sample sized population in order to make inference and opinion more fact based and accurate with a view to draw conclusions and frame decisions on the basis of the observations and findings .This will surely help to take corrective measures and bring about improvement in the product offering in order to enhance customers perception leading to increased market penetration and overall profitability of the company.

The report will cover the following areas –

Snapshot of the work-

Attended week long in-house training at Hewlett-Packard India Sales Pvt. Ltd. To find the market competitiveness for Hewlett-Packard India Sales Pvt. Ltd. To determine the customer attitude towards Hewlett-Packard India Sales Pvt. Ltd. Scheduled appointments with customers for a face to face meeting. Surfing various websites and reading various journals on Hewlett-Packard India Sales

Pvt. Ltd.

Detailed Progress of the project-

Gained an insight on the overall functioning of the Hewlett-Packard India Sales Pvt. Ltd.

Administered questions to 64 customers (School, Small Company, Hospital) for knowing their preferred products and why.

39 out of 64 respondents i.e. 61% of the organizations who took the survey do not use any workstation.

53 out of 64 respondents i.e. 83% of the organizations do not use any laptop.

A large number of organizations using only HP as their desktop brand. Dell, Lenovo, IBM IT organizations are also there as HP competitor. As per Porter analysis threat of new entrants are high so that market competition also

high. As per SWOT analysis the threats of HP’s are Dell and Lenovo who offer lower prices

than HP.

Table of Contents

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Ch. No. Contents Page No.

7

1. Introduction 9

1.1. Product brief 10

1.2. Literature review 11

2. Industry analysis of the organization 12-15

2.1. Porter’s Five Forces: Hewlett – Packard Company. 12-14

2.2. PESTEL Analysis of Hewlett – Packard Company. 15

3. Analysis of the organization. 16-20

3.1. Hewlett-Packard company profile. 16

3.2. SWOT Analysis of Hewlett – Packard Company. 17-18

3.3. Competitor analysis of HP. 19-20

3.3.1 Lenovo Group Limited 19

3.3.2 Competitor Analysis: Dell 20

4. Objectives and scope of work. 21

5. Project Planning and Methodology. 22-23

5.1. Project Planning. 22

5.2. Research Methodology. 23

6. Data Analysis & Findings. 24-38

7. Conclusions & Recommendations. 39

8. Limitations of the Study. 40

Contents Page No.References 41

Attachments 42-44

List of illustrations

List of tables and figures 8

Sl. No. Table No. Figures No. Page No.1 Table No.-1 Figure no.-1 24

2 Table No.-2 Figure no.-2 25

3 Table No.-3 Figure no.-3 26

4 Table No.-4 Figure no.-4 27

5 Table No.-5 Figure no.-5 28

6 Table No.-6 Figure no.-6 29

7 Table No.-7 Figure no.-7 30

8 Table No.-8 Figure no.-8 31

9 Table No.-9 Figure no.-9 32

10 Table No.-10 Figure no.-10 33

11 Table No.-11 Figure no.-11 34

12 Table No.-12 Figure no.-12 35

13 Table No.-13 Figure no.-13 36

14 Table No.-14 Figure no.-14 37

15 Table No.-15 Figure no.-15 38

1. Introduction

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The Project titled “Estimation of market share of HP products (printing and personal computing system) in the educational institutions and SME/PSU market segments in Kolkata". Is an attempt to understand the potential buyers for HP and Find out satisfaction level of HP users. In order to understand the Consumer Behavior towards HP product (personal computer, tablet, printer).

Objectives of the Study:

To Explore the Perceptual Position of different products and financial solutions offered by Hewlett-Packard India Sales Pvt. Ltd.

Estimation of market share of HP products in personal and printing system (PPS). To know the Consumer Behavior towards HP product (personal computer, tablet, printer). Identify the potential buyers for HP.Activities and targets:

Product training. Market survey. Data analysis. Findings and conclusion. Report writing and presentation.

Methodology:

Familiarization with HP product (pc, printer, tablet).Gather information about HP. Make a sample questionnaire. Make a test research with that questionnaire. Make final questionnaire. Divide the local IT product market into three parts. Collect the buyers address by pin code and street mapping. Go for survey to the local market and collect the information. Analysis the data. Identify the problem Prepare a solution.

Limitations of the Study

Hesitation or reluctance on the part of survey respondents to share confidential or company specific information.

The concerned person is sometimes not aware of the product due to which they may provide misleading information which would lead to inaccurate result in the project.

1.1. Product brief

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Hewlett-Packard Company is a provider of products, technologies, software, solutions and services to individual consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the Government, health and education sectors. Its operations are organized into seven segments: the Personal Systems Group (PSG), Services, the Imaging and Printing Group (IPG), Enterprise Servers, Storage and Networking (ESSN), HP Software, HP Financial Services (HPFS) and Corporate Investments. The Company’s offerings include personal computing also.

Personal Systems Group (PSG)

PSG provides commercial personal computers (PCs), consumer PCs, workstations, calculators and other related accessories, software and services for the commercial and consumer markets. The Company groups commercial notebooks, commercial desktops and workstations into commercial clients and consumer notebooks and consumer desktops into consumer clients. Commercial PCs include the HP Pro Book and the HP Elite Book lines of notebooks and the Compaq Pro, Compaq Elite, HP Pro and HP Elite lines of business desktops, as well as the Touch Smart and Omni PCs, HP Mini-Note PCs, retail POS systems, HP Thin Clients and HP Slate Tablet PCs.

Imaging and Printing Group (IPG)

IPG provides consumer and commercial printer hardware, supplies, media and scanning devices. IPG is also focused on imaging solutions in the commercial markets. These solutions range from managed print services to capturing high-value pages in areas, such as industrial applications, outdoor signage, and the graphic arts business. Inkjet and Web Solutions delivers HP's consumer and SMB inkjet solutions (hardware, supplies, media, web-connected hardware and services) and develops HP's retail publishing and Web businesses. It includes single function and all-in-one inkjet printers targeted toward consumers and SMBs, as well as retail publishing solutions, Snap fish and ePrintCenter. LaserJet and Enterprise Solutions delivers products, services and solutions to the medium-sized business and enterprise segments, including LaserJet printers and supplies, multi-function devices and scanners.

HP Software

HP Software provides enterprise IT management software, information management solutions and security intelligence/risk management solutions. Solutions are delivered in the form of software licenses or as software-as-a-service. HP Software solutions enables IT organizations to manage infrastructure, operations, application life cycles, application quality and security, IT services, business processes, and structured and unstructured data.

HP Financial Services (HPFS)

HPFS supports HP's global product and service solutions, providing a range of financial life cycle management services. HPFS enables its worldwide customers to acquire IT solutions, including hardware, software and services. The Company offers leasing, financing, utility programs and asset recovery services, as well as financial asset management services for global and enterprise customers. HPFS also provides an array of specialized financial services to SMBs and educational and Governmental entities.

1.2. Literature review

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Mr. Nathan Eddy (5.29.2015) ‘HP, Dell Lead Growing Worldwide Server Market’, Eweek, pg. 1

Worldwide server shipments grew 13 percent year over year, while revenue in the first quarter of 2015 increased 17.9 percent from the first quarter of 2014, according to a report from Gartner.HP maintained its top ranking in the worldwide server market based on revenue with 23.8 percent market share in the first quarter of 2015. Lenovo experienced the largest increase in the first quarter of 2015 with 658.2 percent growth. With the exception of IBM, all of the top five global vendors had revenue increases for the first quarter of 2015.The regions with the highest growth rates in unit shipments in the first quarter of 2015 were North America (22.9 percent), the Middle East and Africa (20.8 percent), and Asia/Pacific (13.6 percent).

Kakoli Chakraborty (  New Delhi  April 14, 2015) ‘HP reinvents printing technology’, Business Standard, pg No. 1

In the time of mobility and portability, why should printing technology stay behind - this seem to be idea behind Hewlett-Packard (HP)’s new product launch. HP has unveiled a series of next-generation office printers.

A staff reporter (Monday, July 15, 2013) ‘HP eyes small business market’, The Telegraph Calcutta, India, pg No. 1

Hewlett-Packard India has come up with laser-comparable inkjet printers designed for small and medium enterprises in the Northeast.

“The Northeast is an emerging hub for small and medium businesses that require technologies to improve efficiency and reduce costs. So, we have launched two laser-comparable inkjet printers — HP Office jet Pro X series and the HP Office jet Pro 3610/3620 B&W series — designed for such enterprises and small/home offices,” Diptesh C. Ghosh, country category manager (printing and personal systems) HP India, said at the launch here recently.

ET Bureau (14 Apr, 2015, 01.06AM) ‘Hewlett-Packard sees domestic IT market expansion opportunity in Digital India’, The Economic Times, Pg No. 1 

Hewlett-Packard (HP) India believes that expanding the domestic IT market will be key to the successful realization of the 'Digital India' initiative, and that there are still several untapped sectors that should be brought under the fold of the programme.

"The reason why we see a huge opportunity in the government is because mindsets are changing, the manner in which the government now wants to do more and more in the digital space, than in the physical space," said Rajiv Srivastava, vice president and general manager, HP Printers & Personal Systems (PPS) India. 

2. Industry   analysis   of the organization

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Competitor HIGH

Suppliers HIGH

Substitutes MODERATE

EntrantsLOW

BuyersHIGH

Industry analysis: A market assessment tool designed to provide a business with an idea of the complexity of a particular industry. Industry analysis involves reviewing the economic, political and market factors that influence the way the industry develops. Major factors can include the power wielded by suppliers and buyers, the condition of competitors, and the likelihood of new market entrants.

2.1. Porter’s Five Forces: Hewlett – Packard Company

Threat of new entrants:

New companies entering a particular industry are always willing to win the market share. If barriers to entry were high enough, the existing competitors would be protected from the new entrants; so this threat would be low.

HP is competing in a very challenging industry. It is a well-known fact that the PC industry is considered a low margin one. Thus, it does not look appealing for the new entrants. Besides, in order to compete within this industry, against such computer idols as HP, Dell, Lenovo, etc. a new entrant must make huge investments, which would require a lot of upfront capital. When speaking about the market share, it is highly unlikely that a new entrant would be able to win over from such famous and well-established brands like HP, Dell and Lenovo. The only way to enter and be successful in the PC industry is to discover a unique cutting-edge idea in technology, followed by successfully developing it into reality. But given the investments, for example, HP is making into the R&D and Innovations; again the chance that a new entrant could win this battle is fairly low. Therefore, the threat of new entrants in relation to HP can be considered as low.

Bargaining power of buyers.

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Buyers influence industry by forcing to lower the prices, demanding more services or higher quality. The power of buyers can cost the profitability of the industry.

The bargaining power of buyers is very high in relation to HP. Nowadays customers have lots of choice on the PC market, the consequence of which is price reduction. But low prices are not the only thing that customers bargain for. Together with this, they want higher quality products and better customer service. Having such competitors as Dell or Lenovo, it is extremely hard for HP to keep customers loyal. Even though HP’s strategy is to be a differentiator through high quality and product variety, most of the time it is not enough for customers to stay loyal. Hence, the bargaining power of buyers is high in case of HP.

Bargaining power of suppliers:

Suppliers can put pressure on the industry by raising the prices or reducing the quality of the goods or services. This can directly lead to the decrease of the profitability of the industry, which might not be always able to recover the costs at its own expense.

A computer consists of a lot of small components, which are provided by different suppliers. For example, when it comes to processors, HP’s only supplier is Intel. Intel is the global leader with 80% of the market share. Intel has all the power to define its prices, leaving HP with no influence on it. This is quite a dangerous situation for HP, which can directly impact the company profitability, in case Intel decides to increase its prices. Having no other processor supplier, HP is confined within the strict limits. Therefore, the bargaining power of suppliers can be considered high for HP.

Substitute products: In every industry companies compete with substitute products, which limit the potential profits by placing price ceilings. The higher is the pressure from the substitutes and the more attractive their price is, the more impacted the profit of the company competing against them would be.

PC industry in general is threatened by substitutes. The introduction of the advanced technologies in mobile devices and tablets has decreased customer demand for PCs. Gartner’s principal analyst, Ms. Kitagawa, says that customers demonstrate less and less interest in purchasing PCs due to availability of the other technology products, such as smart phones and tablets (Gartner, 2012a). Such a change poses a definite threat to HP’s PC business. Though, this threat cannot be considered high for HP, as HP has already introduced its own tablet device, as well as it has capacity to develop its Smartphone business (Palm). Therefore, the threat of the substitute products is moderate for HP.

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Rivalry among the existing competitors:Competitive rivalry exists in every industry. If one company decides to improve its market position by decreasing the prices, or introducing a new product, or service, other companies within this industry would start feeling the impact. The more intense the rivalry is, the higher is the chance to lose the competition.

HP competes on the extremely rival market. Its primary competitors, Dell and Lenovo, have a strong position on the market. Lenovo has been taking on opportunities and strengthening its position in emerging markets, as well as it launched an aggressive channel program in the U.S., which led to overtaking the market share from HP. Dell is slightly behind, but nevertheless holds a solid market share. Both competitors stick to the cost leadership strategy, whilst HP bets on being differentiated through the quality and variety of products. In order to win the competition, and return place in PC making business, HP’s CEO Meg Whitman took a decision to unite HP’s Personal Systems Group with Printing Solutions Group. This decision will help significantly reduce the costs, and introduce lower prices on the market.

Based on the analysis of HP Personal Systems and its primary competitors, Dell and Lenovo, represented in this paper, the following list of strategic actions can be recommended to HP, in order to leverage its potential and regain the lost market share.

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2.2. PESTEL Analysis of Hewlett – Packard Company

PESTLE analysis, which is sometimes referred as PEST analysis, is a concept in marketing principles. Moreover, this concept is used as a tool by companies to track the environment they're operating in or are planning to launch a new project/product/service etc.

Political

Hewlett-Packard operates in more than 170 countries. Multinational firms can be majorly impacted by governments, who impose regulations. Whilst also being able to change the levels of taxation or import duties. There is also political risk defined as " the likelihood that political forces will cause drastic changes in a country's business environment” as cited by Mellahi et al 2005.

Economic

Within the mobile technology industry economic factors to be considered are the rate of inflation, the disposable income consumers, as well as levels of unemployment. Mobile technology products such as smart phones can be seen as a luxury product. With a worldwide recession occurring from 2007 till 2009 (CNN) and the market still recovering less disposable income is available to spend on these luxuries.

Socio-cultural

Consumer attitudes changing can influence firm strategies with some products becoming less fashionable, the mobile technology industry must become sensitive to changing trends. Articles have been written that predict there is a possibility for smart phones to take over from the PC in the near future.

Technological

The mobile technology industry is a fast moving with the pace increasing. This is true in this industry with new technology software being released every day. As well as Wi-Fi being made available in public places, such as the London Underground.

Environmental

Environmental issues have become a more increasing concern in recent years. This includes the mobile technology industry. Companies are put under more pressure to adopt corporate social responsibility. There is also the need to follow environmental law for example in Europe.

Legal

The mobile technology industry has many legal factors they must take into consideration. This can include laws against monopolies, impacting on whether companies can perform an acquisition or merger. As well as financial regulations and employment laws. The industry must also be aware of patents, ensuring they don't infringe on a patent (Intellectual Property Office 2011).

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3. Analysis   of the organization

3.1. Hewlett-Packard company profile

Overview of Hewlett-Packard Company:

Hewlett-Packard co. is a provider of information technology product, software, solutions and services.

HP produces personal computer, laptop, workstation, printer, tablet and servers, provides IT and consulting services, and makes networking products and software to tie everything together.

Its service portfolio includes enterprise IT infrastructure solution, technology support, maintenance service, integration and consulting services.

HP’s customer portfolio ranges from individual to small, medium and large enterprises.

The company conducts business operations in 170 countries across Americas, Europe, Middle East and Asia- pacific regions.

HP’s head quartered in Palo Alto, California, US.

Hewlett-Packard Company in India:

HP comes in India in 1988. HP India has a presence in over 350 cities in the country.

The HP- Compaq merger in 2002 created the largest pc company in India with revenues of RS. 35 billion and a combined 17% market share in India.

In March 2009, HP launched the ‘HP Software University’ (HPSU) in partnership with Indian Institute of Hardware Technology.

The Indian entities of Hewlett-Packard co. are:HP India Sales Privet Limited for sales and marketing operations.Global e – business operations privet limited for transaction processing.HP India software operations Pvt. Ltd. For software development and sales.HP consumer contract center-Technical support contract center.HP global soft Ltd –HP services global delivery operations in India for application services, IT infrastructure and technology services.

Product segments of Hewlett-Packard Company:

Its operations are organized into 7 segments

The personal system group (PSG). Services. The imaging and printing group (IPG). Enterprise servers, Storage and Networking (ESSN). HP software. HP financial services (HPFS). Corporate investments.

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3.2. SWOT Analysis of Hewlett – Packard Company

Strengths:

HP is currently the world’s 15th most valuable brand. Undoubtedly, HP’s brand represents one of the key strengths of the company. Many customers associate HP brand name with innovation, quality and reliability, which consecutively effect buyers’ decision to choose HP products over the competitors. The second strength is the company size and scalability. HP is the biggest company of its kind. Because of its size, the company can easily access the necessary resources, funds, or clients, which are not available to smaller competitors. The last, but not the least strength is innovation and R&D. HP sees innovation as “an essential ingredient to establish and maintain business advantage”. HP has been making huge investments in R&D, having received more than 36,000 patents as of 2011. Overall, innovation is key in the business culture, which brings advantage over competitors.

S

- Strong brand- Size & scale - Innovation/R&D

W

- Size - Supply chain

O

- Recover PC market- Grow tablet PC business

T

- High competition - 3rd party suppliers

HP SWOT Analysis

Weaknesses:

Although the size of HP was mentioned as one of its strengths, it can also be considered as one of its weaknesses. Being a big size company can hinder the speed of the response to a competitor’s strategic move, as well as the selection of a tactful market moves/decisions. The latter ones are also affected by the level of bureaucracy, which are more typical for bigger companies in comparison to smaller ones. The other weakness, supply chain, can be quite dangerous for HP. For example, HP uses Intel as the only provider of processors. If at any point, there is a disagreement between HP and Intel, it could directly threaten HP’s market position.

Opportunities:

One of the main opportunities for HP is to recover their PC business and regain the position of the global PC manufacturer. The company has all the necessary means to become successful in becoming a good leader, using clear strategy, and further advanced in technology. The other potential opportunity for HP is to expand its role on the PC tablet market, where HP’s current strategy is to “aggressively attack” the tablet market.

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Threats:

High competition is the most dangerous threat for HP, especially when it comes to prices. For instance, Dell and Lenovo, being able to offer lower prices than HP, can eventually drag HP’s margins to zero. The other potential threat, third party suppliers, should also be dealt with, as shortages, contractual risk, and oversupply might cause a lot of damage to HP’s cost management.

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3.3. Competitor analysis of HP

3.3.1. Lenovo Group Limited

Being born into an industry that already exists, Lenovo has had the opportunity to examine what works and what does not. This analytical approach allowed the company to assess its barriers to entry and devise strong cost leader competitive strategy to carry out its success placement in the industry. Michael E. Potter describes the cost leader competitive strategy as primarily being focused on the efficiency of a low-cost business, while still keeping up a healthy profit margin by spending less on promotion and sales. As A Company, they realize the significance of the vis-à-vis, and focus on maintaining a strong position to have a competitive advantage in combating their rivals. The target market embodies small/large businesses and extends its contacts in the education, medical and government fields. Product lines appeal too most buyers varying from low-end to high-end segments. The company takes a portion of profit to reinvest into R&D advancements to keep up with trends and updating old products.

What is Lenovo doing to improve their competitive situation?

Lenovo has a vision of spreading its wingspan globally, and already started using its cash cow (the desktop PC) to attain these goals. By viewing the global market as open, Lenovo has begun to build nests in countries such as Japan, and Germany. Growth strategy is attained by sharing operation, and function costs with local manufacturing centers by forming joint alliances. As an outcome both sides increases production, cut transportation cost, fulfill the current growing demand, offer economic growth to the country and lastly increase jobs in the market. Lenovo is also aware of the new trends in its target market (the corporate world), which require higher demand for integration of mobility in business. The preferences in the corporate world are becoming more obvious with a higher demand of laptops as a pose to the dusk collecting stationary desktop computer, which glues employees to their workstation. This situation offers new opportunity for inventing multiple varieties of laptops ranging from low-end to high-end segments with the focus of three things: performance efficiency, durability, and overall lightweight characteristics. If the focus strategy is executed right, it will generate additional revenue and increase company percentage of the overall market share.

Vulnerability of Lenovo

Being a young company with weak brand identification in a world of experienced and fierce competition jeopardizes the success of Lenovo. It is essential to stay on track of making profitable moves in order to be financial health, and withstand the impact of competitor’s strategies. For new companies with little experience it can become cumbersome to manage: forecasting which investments/strategies will pay off the most, knowing when it the worst/best time to invest in R&D (how often to create/ update products), at what time to invest in marketing to derive a strong company identity, and when to invest in promotion & sales to aggressively achieve customer awareness.

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3.3.2. Competitor Analysis: Dell

Dell, the pioneer of sustaining a healthy balanced finance portfolio has achieved its goals buy remaining efficient is all its divisions in the organization and in return offered competitive prices. Dell’s objective is to coexist on the low-end segment where profitability is more realistic. This strategy was attained by standardizing their product models in order to drop price margins, so that they could offer the ability to invest in customer service and the customization of a product to fit individual needs. To further minimize costs, Dell has implemented a strong relationship with suppliers to ensure the best prices, created a strategy to have no manufacturing costs since parts are ordered & assembled, no operating costs by having no physical retailer location, and achieves a low over production margin by offering built to order systems. Michael E. Potter, author of describes the cost leader competitive strategy as primarily being focused aggressively attaining efficiency of a low-cost business, while still keeping up a healthy profit margin by spending less on promotion, sales and R&D.

What is Dell doing to improve their competitive situation?

On Dell’s website you will find the company philosophy, “Reliability- Service- Support.” Dell calls the relationship between the customer and themselves an open agreement, which allows for free flow of communication to address problems and recognize opportunities to change. This perspective helps Dell follow customer needs and changes in tends. In addition revisions have been made to their sensory system to maintain customers up to date by: keeping track of customer preference, previous orders, and a time log of updates on hardware/software. Also investments have been made in RD&E to engineering new features, and sociable technologies for relevant products. Dell defends its position by proving that. Aside from developing features, no major R&D developments were constructed due to economic health.

Vulnerability of Dell

Protected by market positioning it has become sleepy and less responsive to the competitors moves. While other companies update products to keep up with the new market conditions, they have stayed focused on remaining efficiency with the goal of achieving higher profit margins annually. As a result, no technological specialization is accomplished and customers are left with buying old-fashioned products with updated features. The computer demand goings up and prices plummet can pose to be a serious threat to the company because the accessibility to more comparable options has in result educated buyers in comparing product and conducting cost analysis. In addition, navigating through a poorly engineered and outdates website poses high risk to buyer who already has no idea what they are investing in online. With the future pressures of cheaper modern alternatives, it is evident to forecast residual erosion for Dell when it comes to customer’s satisfaction and spending.

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4. Objectives and scope of work

To Explore the Perceptual Position of different product and financial solutions offered by Hewlett-Packard India Sales Pvt. Ltd.

To find out the penetration of IT products in educational institutions.

To analyze the psyche and desires of the potential customers in terms of investment in different product and financial solutions being offered by the company.

To study the various product of hp like personal computer, laptop, tablet, workstation, software etc.

To find out the market share of Hp in IT products.

To compare the use of IT products in educational institutions.

To explore the unexplored potential market of Hp.

Find out satisfaction level of HP users.

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5. Project Planning and Methodology

5.1. Project Planning

Steps involved in project planning are as follows:

Step 1: Product Training:

An understanding of the goods or services that might include having acquired information about its application, function, features, use and support requirements.

Step 2: Market Survey:

 A market survey can describe any study that gathers information directly from consumers by asking those questions about their preferences, habits and experiences.

Step 3: Data Analysis:

Analysis of data is a process of inspecting, cleaning, transforming, and modelling data with the goal of discovering useful information, suggesting conclusions, and supporting decision-making.

Step 4: Findings & Conclusion:

Facts and figures collected to satisfy the objectives of the report (the findings), inferences drawn from the findings (the conclusions), and courses of action suggested in line with the objectives of the audit (the recommendations).

Step 5: Report writing & Presentation:

Creating an account or statement that describes in detail an event, situation or occurrence, usually as the result of observation or inquiry. A presentation is the process of presenting a topic to an audience. It is typically a demonstration, lecture, or speech meant to inform, persuade, or build good will.

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5.2. Research Methodology

Research problem: Asses the market share of Hp and compare with other IT companies. The business of Hp. The company wants to know the potential market for its different

product in order to expand and retain its market share. Comparison between the requirements of educational institutions.

Research design: Determine the Information Sources: The data has been gathered through secondary

sources. Primary Data is collected through questionnaire, search and research through place

where today’s computer and office automation products has been mostly used. Secondary Data has been collected through magazines, newspapers, journals and

websites.

Data collection:The data has been collected by gathering information through the official websites, magazines and journals.

Developed the research frame:This includes deciding upon various aspects for the project on which the entire research is based. The research is framed includes:

Sampling Technique: The samples were taken on the basis of simple random and convenient sampling. The tools used for the analysis are bar graphs and pie-charts.

Nature of study:The project on which work is done is descriptive and internal in nature.

Data source:I took the help of both primary as well as secondary sources. Primary sources being the interaction between with various IT people of the selected institutions and filling up questionnaire by them. Secondary sources being the I schools, hospital, some small company internet as the medium and the official sites of the companies of IT sectors. Instruments used:A questionnaire cum personal interview was used for market research for the segment. The company in which the research is done provided the Questionnaire and an idea of its prospective clients.

Sample size:Sample size for research is fixed. It counts to 64. It includes schools, hospital, some small company. The sample included 64 schools, hospital, some small company located at different locations of West Bengal.

24

6. Data Analysis & Findings 1. What is your existing installation base of desktops?

Using Brand No. Of organization %Assemble/HP 2 3.125DELL 4 6.25DELL/APPLE 1 1.5625HP/DELL 14 21.875DELL/Lenovo 1 1.5625HP 29 45.3125HP/ACER 2 3.125HP/Apple 5 7.8125HP/APPLE/DELL 1 1.5625HP/Lenovo 5 7.8125Total 64 100

Table No.-1

3% 6% 2%

22%

2%45%

3%8%2%

8%

Assemble/HPDELLDELL/APPLEHP/DELLDELL/LenovoHPHP/ACERHP/AppleHP/APPLE/DELLHP/Lenovo

Figure no.-1

Observation

29 out of 64 respondents i.e. 45% of the organizations who took the survey use HP as their desktop brand.

14 out of 64 respondents i.e. 22% of the organizations who took the survey use HP and DELL as their desktop brand.

21 out of 64 respondents i.e. 33% of the organizations using other brands like Apple, Lenovo, and ACER.

Interpretation

A large number of organizations using only HP as their desktop brand. Some organizations using DELL and HP as their desktop brand. Some organizations using assemble or other brand like Apple, Lenovo, and ACER as their desktop

brand.

2. What is your existing installation base of laptops?

25

Brand No. Of organization %HP 6 9.375APPLE/DELL 1 1.5625Apple/HP 1 1.5625APPLE/HP/DELL 2 3.125HP/DELL 1 1.5625NA 53 82.8125Total 64 100

Table No.-2

9%2%

2%3%

2%

83%

HPAPPLE/DELLApple/HPAPPLE/HP/DELLHP/DELLNA

Figure no.-2

Observation

6 out of 64 respondents i.e. 9% of the organizations who took the survey use HP as their laptop brand. 5 out of 64 respondents i.e. 8% of the organizations using other brands like Apple, DELL as their

laptop brand. 53 out of 64 respondents i.e. 83% of the organizations who took the survey do not use any laptop.

Interpretation

A large number of organizations do not using any laptop. Some organizations using HP, DELL and Apple as their laptop brand.

3. What is your existing installation base of printers?

26

Brand No. Of organization %

HP 30 46.875CANON 1 1.5625

EPSON/HP 1 1.5625HP/CANON 31 48.4375

HP/CANON/EPSON 1 1.5625

Total 64 100Table No.-3

47%

2%2%

48%

2%

HPCANONEPSON/HPHP/CANONHP/CANON/EPSON

Figure no.-3

Observation

30 out of 64 respondents i.e. 47% of the organizations who took the survey use HP as their printer brand.

31 out of 64 respondents i.e. 48% of the organizations using HP and Canon as their printer brand. 3 out of 64 respondents i.e. 5% of the organizations using both of HP, Canon, Epson as their printer

brand.

Interpretation

A large number of organizations using only HP as their printer brand. Some organizations using all (HP, Canon, and Epson) as their printer brand.

4. What is your existing installation base of workstations?

27

Brand No. Of organization %HP 7 10.9375

HP/DELL 1 1.5625HP/IBM 13 20.3125

IBM 4 6.25NA 39 60.9375

Total 64 100Table No.-4

11% 2%

20%

6%

61%

HPHP/DELLHP/IBMIBMNA

Figure no.-4

Observation

13 out of 64 respondents i.e. 20% of the organizations who took the survey use HP and IBM as their workstation brand.

7 out of 64 respondents i.e. 11% of the organizations who took the survey use HP as their workstation brand.

4 out of 64 respondents i.e. 6% of the organizations who took the survey use IBM as their workstation brand.

39 out of 64 respondents i.e. 61% of the organizations who took the survey do not use any workstation.

Interpretation

A large number of organizations do not using any workstation. Some organizations using HP as their workstation brand. Some organizations using DELL and IBM as their workstation brand.

5. Which is your favorite brand?

28

Brand No. Of organization %HP 46 71.875Apple 10 15.625DELL 5 7.8125Lenovo 3 4.6875Total 64 100

Table No.-5

72%

16%

8% 5%

HP Apple DELL Lenovo

Figure no.-5

Observation

46 out of 64 respondents i.e. 72% of the organizations who took the survey they like HP as their favorite brand.

10 out of 64 respondents i.e. 15% of the organizations who took the survey they like Apple as their favorite brand.

5 out of 64 respondents i.e. 8% of the organizations who took the survey they like DELL as their favorite brand.

3 out of 64 respondents i.e. 5% of the organizations who took the survey they like Lenovo as their favorite brand.

Interpretation

A large number of respondents like HP as their favorite brand. Some respondents also like Apple, DELL and Lenovo as their favorite brand.

6. Has anybody from HP ever communicated with you through any medium?

29

HP ever communicated with you through any medium %

Yes 11 17.1875

No 53 82.8125

Total 64 100Table No.-6

17%

83%

Yes No

Figure no.-6

Observation

11 out of 64 respondents i.e. 17% of the organizations who took the survey and their answer was yes. 53 out of 64 respondents i.e. 83% of the organizations who took the survey and their answer was no.

Interpretation

Hp did not communicate with a large number of respondents.

7. Has any HP partner ever come in contact with you?

30

HP partner come in contact %

Yes 4 6.25

No 60 93.75

Total 64 100Table No.-7

6%

94%

YesNo

Figure no.-7

Observation

4 out of 64 respondents i.e. 6% of the organizations who took the survey and their answer was yes. 60 out of 64 respondents i.e. 94% of the organizations who took the survey and their answer was no.

Interpretation

Any Hp partner did not come to a large number of respondents.

8. Do you get regular information about HP products?

31

Do you get regular information about HP products %

Yes 57 89.0625

No 7 10.9375

Total 64 100Table No.-8

89%

11%

YesNo

Figure no.-8

Observation

57 out of 64 respondents i.e. 89% of the organizations who took the survey and their answer was yes. 7 out of 64 respondents i.e. 11% of the organizations who took the survey and their answer was no.

Interpretation

A large number of respondents get regular information about HP products.

9. Are you satisfied with the existing brand that you are using?

32

satisfied with the existing brand %

Yes 64 100

No 0 0

Total 64 100Table No.-9

100%

YesNo

Figure no.-9

Observation

64 out of 64 respondents i.e. 100% of the organizations who took the survey and their answer was yes.

Interpretation

All respondents are satisfied with the existing brand that they are using.

10. What is the buying procedure of your organization’s IT products?

33

buying procedure %

Tendering60 93.75

Tendering/DGS & D4 6.25

Total 64 100Table No.-10

94%

6%

TenderingTendering/DGS & D

Figure no.-10

Observation

60 out of 64 respondents i.e. 94% of the organizations who took the survey use tendering as their buying procedure.

4 out of 64 respondents i.e. 6% of the organizations who took the survey use tendering and DGS&D as their buying procedure.

Interpretation

A large number of organizations use tendering as theirs buying procedure. Some organizations DGS&D as theirs buying procedure.

11. On a scale of 1-5, how would you rate HP as a company? (where 1 is poor & 5 is excellent)

34

Rate HP as a company (1-5)

Rate No. Of organization %

one 0 0

two 0 0

three 17 26.5625

four 41 64.0625

five 6 9.375

Total 64 100Table No.-11

27%

64%

9%

onetwothreefourfive

Figure no.-11

Observation

41 out of 64 respondents i.e. 64% of the organizations who took the survey and give 4 out of 5. 17 out of 64 respondents i.e. 27% of the organizations who took the survey and give 3 out of 5. 6 out of 64 respondents i.e. 9% of the organizations who took the survey and give 5 out of 5

Interpretation

A large number of respondents give 4 stars which is very good symbol for HP. 5 stars also there which is also positive result to HP.

12. Are you satisfied with the existing printing device that you are using?

35

Satisfaction label with the existing printer %

satisfied 16 25

Very satisfied 21 32.8125

Somewhat satisfied27 42.1875

Not satisfied0 0

Total 64 100Table No.-12

25%

33%

42%

satisfied Very satisfied Some what satisfid

Figure no.-12

Observation

27 out of 64 respondents i.e. 42% of the organizations are somewhat satisfied. 21 out of 64 respondents i.e. 33% of the organizations are very satisfied. 16 out of 64 respondents i.e. 25% of the organizations are satisfied.

Interpretation

A large number of respondents are satisfied with HP.

13. Do you have a separate scanning device or a multi-function device?

36

Separate scanning device or a multi-function device %

multi-function device 5382.8125

Both (multi-function device and separate device) 1015.625

NA1

1.5625

Total 64 100Table No.-13

83%

16%2%

multi-function device Both NA

Figure no.-13

Observation

53 out of 64 respondents i.e. 83% of the organizations who took the survey use multi-function device as printer.

10 out of 64 respondents i.e. 16% of the organizations who took the survey use both multi-function and separate device as printer.

1 out of 64 respondents i.e. 81% do not using any printer

Interpretation

A large number of organizations using multi-function device. Some organizations using both multi-function and separate device.

14. Did you face any service issues with the existing printing device?

37

Face service issues with the existing printer %

Yes 32 50

No 32 50

Total 64 100Table No.-14

50%50%

Yes No

Figure no.-14

Observation

32 out of 64 respondents i.e. 50% of the organizations who took the survey and their answer was yes. 32 out of 64 respondents i.e. 50% of the organizations who took the survey and their answer was no.

Interpretation

Half of respondents are facing service issues with existing printer. Half of respondents are do not facing any service issues with existing printer.

15. Are you facing this issue at a regular interval?

38

Facing service issue at a regular interval %

Yes 2 3.125

No 62 96.875

Total 64 100Table No.-15

3%

97%

Yes No

Figure no.-15

Observation

2 out of 64 respondents i.e. 3% of the organizations who took the survey and their answer was yes. 62 out of 64 respondents i.e. 62% of the organizations who took the survey and their answer was no.

Interpretation

A large number of organizations not facing service issue at a regular interval.

7. Conclusions & Recommendations39

7.1. Conclusions:

A large number of organizations using only HP as their desktop brand. Some organizations using DELL and HP as their desktop brand. Some organizations using assemble or other brand like Apple, Lenovo, and ACER as

their desktop brand. A large number of organizations do not using any laptop. Some organizations using HP, DELL and Apple as their laptop brand. A large number of organizations using only HP as their printer brand. Some organizations using all (HP, Canon, and Epson) as their printer brand. A large number of organizations do not using any workstation. Some organizations using HP as their workstation brand. Some organizations using DELL and IBM as their workstation brand. A large number of respondents like HP as their favorite brand. Some respondents also like Apple, DELL and Lenovo as their favorite brand. Hp did not communicate with a large number of respondents. Any Hp partner did not come to a large number of respondents. A large number of respondents get regular information about HP products. All respondents are satisfied with the existing brand that they are using. Some organizations using DGS&D as theirs buying procedure. A large number of respondents give 4 stars which is very good rating for HP. 5 stars also there which is also positive result to HP. A large number of respondents are satisfied with HP. A large number of organizations using multi-function printer device. Some organizations using both multi-function and separate printer device. Half of respondents are facing service issues with existing printer. Half of respondents are do not facing any service issues with existing printer. A large number of organizations do not facing service issue at a regular interval.

7.2. Recommendations:

After studying the findings conclude that the company plugs in certain points where they are lagging behind.

Hp should increase their communication with their customer base. Hp should have their partners come in contact with their customers on a more regular

interval. Hp should increase their advertisements in order to increase their customer strength. Hp should go and give a sample test to their customer because a large number of

organization do not using any laptop.

8. Limitations of the Study

40

Hesitation or reluctance on the part of survey respondents to share confidential or company specific information.

The concerned person is sometimes not aware of the product due to which they may provide misleading information which would lead to inaccurate result in the project.

Only 64 surveys in deferent segment, like school, hospital, and some small company which is not enough, need more data which will make this project more effective.

I got some appointment but I cannot attend them for short time period, maybe I can get some important information if I attend them.

References

41

Website Links:

Business Day Live (2012). Mustek plans to expand portfolio with tablet offering. Retrieved November 15, 2012 from http://www.bdlive.co.za/business/technology/2012 /10/18/mustek-plans-to-expand-portfolio-with-tablet-offering

http://www.slideshare.net/misscreative/hcl-project?related=1 http://www.slideshare.net/fabihajuveria/organization-study-at-hp?related=1 http://www.telegraphindia.com/1130715/jsp/northeast/story_17115029.jsp http://in.reuters.com/finance/stocks/companyProfile?symbol=HPQ.N http://www.business-standard.com/article/technology/hp-reinvents-printing-technology-

115041400835_1.html http://www.eweek.com/small-business/hp-dell-lead-growing-worldwide-server-market.html Business Insider (2012). The 20 Most Valuable Brands In The World. Retrieved November 14, 2012

from http://www.businessinsider.com/most-valuable-brands-in-the-world-2012-10?op=1#ixzz2D9sFaZYd

http://economictimes.indiatimes.com/tech/software/hewlett-packard-sees-domestic-it-market-expansion-opportunity-in-digital-india/articleshow/46913053.cms

Chen, Grace, and Jasmine Lu. Lenovo. Morgan Stanley Research. New York: Morgan Stanley, 2008. Retrieved November 17, 2012 from: http://www.gazhoo.com/upload/ document/ 2011/02/15/201102152313333169.swf

Gartner (2012b). Vendor rating: Dell. Retrieved November 17, 2012 from: http://www.gartner.com/technology/reprints.do?id=1-1C66P7T&ct=120926&st=sb

Gray, Benjamin. How Enterprise Buyers Rate Their PC Suppliers and What It Means for Future Purchases. Forrester. 2007. Retrieved November 17, 2012 from: http://www.dell.com/downloads/global/corporate/iar/20071112_Forrester_HowEnterpriseBuyersRate.pdf

Harvard Business Review (2008). The Five Competitive Forces That Shape Strategy. Retrieved November 16, 2012 from http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ar/1

Harvard Business School (2005). Is Less Becoming More? Retrieved November 15, 2012 from http://hbswk.hbs.edu/item/5078.html

HP (2012). Innovation Insights. Retrieved November 13, 2012 from http://www8.hp.com/us/en/campaign/services/insights.html

International Data Corporation (2012). Worldwide PC Microprocessor Revenues in 2011 Rise 13.2% Compared to 2012, According to IDC. Retrieved November 14, 2012 from http://www.idc.com/getdoc.jsp?containerId=prUS23376112

MarketLine (2012, June 6). Company Profile: Lenovo Group Limited [MarketLine Inc]. Retrieved November 15, 2012 from http://store.marketline.com/Product/ lenovo_group_limited?productid=755935DB-CC13-4CB2-BD6D-8438BFB391AB

http://www.ukessays.com/essays/management/pestel-analysis-of-hewlett-packard-management-essay.php

Attachments

QUESTIONNAIRE

42

Disclaimer: - The survey is conducted solely for the research work under the programme of IBS Business School, Kolkata as a part of my project and as such the responses generated will be used strictly for academic

purpose.

Name of the Organization: -________________________________________________________________________________Address: ____________________________________________________________________________________________________________________________________________________________________Name of the contact person: __________________________________________________________________________________Contact No: _________________________ Email: ________________________________________

16. When you think of IT products, which brand name comes to your mind first?Apple HP Dell Lenovo

Acer Any other, please mention

17. What is your existing installation base? No. of laptops ________________________________________________________________ No. of desktops ________________________________________________________________ No. of workstations ________________________________________________________________ No. of tablets ________________________________________________________________ No. of printers ________________________________________________________________

18. Which brand of IT products does your organization use?Apple Dell HP Lenovo

Any other, please mention

19. What is your annual budget for IT products and how much of it you use to refresh and buy new products

______________________________________________________________________________________

20. What is your budget for the forthcoming year (2015-2016) for buying IT products?

______________________________________________________________________________________

21. Which is your favorite brand?Dell HP Apple Lenovo Acer

Any other, please mention

22. What is the main criteria to choose your favorite brand? (In case of selecting more than one option as your answer, please indicate your preferences by numbering them in order of your priority)Maximum priority -1, least priority -5)

User friendly Durability Price After sales service

Any other reason, please mention

43

23. Has anybody from HP ever communicated with you through any medium?If Yes, Name: No

24. Has any HP partner ever come in contact with you?If Yes, Name: No

25. Do you get regular information about HP products?Yes No

26. If yes, through which medium? (In case of selecting more than one option as your answer, please indicate your preferences by numbering them in order of your priority)Maximum priority -1, least priority -5)

Social media Newspaper Television Internet

Direct Mailer Any other, please mention

27. Are you satisfied with the existing brand that you are using?Yes If No, reason for not changing ____________________________________

28. What is that one additional feature which you would like to have in your existing product?

________________________________________________________________________________________

29. What is the buying procedure of your organization’s IT products?

________________________________________________________________________________________

30. If HP offers any financial scheme such as Easy finance or EMI’s, will you be interested in buying any HP product?

Yes If No, Reason________________________________________________________

31. If you are a HP customer, what should be the acceptable time lag in attending your reported complain?

12 hours 24 hours 36 hours 48 hours

32. On a scale of 1-5, how would you rate HP as a company? (where 1 is poor & 5 is excellent)1 2 3 4 5

Some Product Related Questions (Printing Device)

1. Which brand of printer does your organization use?

Canon HP Epson Samsung

Brother Xerox Any other, please mention

44

2. What is the approximate monthly print volume of your organization?

________________________________________________________________________________________

3. Are you satisfied with the existing printing device that you are using?

Very Satisfied Some-what satisfied Satisfied

Dissatisfied Not satisfied

4. If not satisfied, what is the reason?

____________________________________________________________________________________________________________________________________________________________________________________

5. Do you have a separate scanning device or a multi-function device?

Separate scanning device Multi-function device

6. Did you face any service issues with the existing printing device?

Yes No

7. Are you facing this issue at a regular interval?

Yes No

8. Which vendor is responsible for service of your existing IT infrastructure?

Name: 1. 2. 3.

9. Are you satisfied with the service rendered by the vendor?

Yes

No. (reason) _______________________________________________________________________________

45