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Table of Contents
At a glance ................................................................................................................ 2
Company Overview ................................................................................................. 3
SWOT Analysis ....................................................................................................... 4
Entry Strategies ....................................................................................................... 6
Entry Restrictions .................................................................................................... 8
Political and Cultural Values................................................................................15
Economical Conditions..........................................................................................16
Extrinsic and Intrinsic Motivational and Hygienic Factors..............................17
CSR Programs.......................................................................................................18
Marketing MIX......................................................................................................20
IMC Campaign......................................................................................................27
Contingency Strategies..........................................................................................28
Reference................................................................................................................29
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AT A GLANCE
Name: Hewlett-Packard Company
Type:Public
Traded as: NYSE: HPQ
S&P 500 Components
Industry:Computer hardware
Computer software
IT services
IT consulting
Founded: January 1, 1939
Founder(s): Bill Hewlett, Dave Packard
Headquarters:Palo Alto, California, United States
Area served: Worldwide
Key people: Ralph Whitworth
(Interim Chairman)
Meg Whitman
(President and CEO)
Revenue: US$ 112.298 billion (2013)
Operating income: US$ 7.131 billion (2013)
Net income: US$ 5.113 billion (2013)
Total assets: US$ 105.676 billion (2013)
Total equity: US$ 27.269 billion (2013)
Employees: 331,800 (2013)
Divisions: Financing, Hardware, Services, Software
Website:www.hp.com
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COMPANY OVERVIEW
Hewlett-Packard’s Vision Statement:To view change in the market as an opportunity to grow; to
use our profits and our ability to develop and produce innovative products.
Hewlett-Packard’s Mission Statement: To provide products, services and solutions of the highest
quality and deliver more value to our customers that earns their respect and loyalty. The
company also understands that actions speak louder than words, so at HP:
We are in a multi-year journey to turn HP around, and we have put in place a plan to
restore HP to growth. We know where we need to go, and we're making progress.
We continue to drive product innovation in our core markets, with a focus on cloud,
security, and big data
We see big opportunities ahead, and we are well positioned to take advantage of these
opportunities with our remarkable set of assets and strengths.
We have the people, the plan, and the foundation in place to help us succeed on the next
phase of the journey.
Some Present Major Goals of HP:
Keep continued successby increasing the loyalty of our customers.
Balance of long-term and short-term objectives is key to profitability.
To be No. 1 or No. 2 in our chosen fields.
To do the right thing and to make a difference.
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SWOT ANALYSIS OF HP
This is Hewlett-Packard Company SWOT analysis for 2013.
HP SWOT analysis 2013
Strengths
Weaknesses
Strong presence in China Poor competency in acquisitions
Brand reputation 29% of income comes from personal
systems division
Diversified product portfolio Poor presence in tablet market
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Opportunities
Threats
Expand services and enterprise
solutions divisions
Retaliation by incumbent firms in
software services
Increasing demand of cloud based
services
Slowing growth rate of the PC market
Acquisition of more technology related
patents
Rapid technological change
Country of Origin: Hewlett-Packard Company or HP is an American multinationalinformation
technology corporation headquartered in Palo Alto, California, United States.
Countries of Operations: HP brings together a portfolio to serve more than 1 billion customers
in over 170 countries on six continents.
Competitors and Types of Competition:
Global competitors include: International Business Machines Corporation(IBM), Dell
Inc, Cisco Systems Inc(CSCO), Xerox Corporation(XRX), Seagate Technology Public
Limited Company, Apple Inc, NCR Corp, EMC Corporation, Toshiba Corporation,
Canon Inc, Fujitsu Limited, Hitachi Ltd, Seiko Epson Corporation, Fujitsu Technology
Solutions (Holding) B.V, Oki Electric Industry Company, Limited, and Acer
Incorporated.
HP is operating in different countries with oligopoly competition.
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ENTRY STRATEGIES
Hewlett-Packard's current operation in Vietnam is limited to the distribution of a small range of
its products through local intermediaries.Hewlett-Packard was evaluating the division's strategic
options for doing business in Vietnam, in 1995.The current economic development in Vietnam is
rather slow and limited, and the infrastructures and the political-legal systems appear to be
underdeveloped. However, the long-term prospects appear very bright.
Advantages
Disadvantages
1. HP has an operating philosophy to always
localize its management organization as quickly as
possible in whichever country it operated.
1.The integration costs of the acquisition were
more than expected due to high commodity
prices.
2. HP is using its sustainability strategy
to drive real revenue growth through
four approaches: by winning new business
while retaining existing business,
2.Increasing transportation risk; which HP is
facing due to its entry strategies.
3. Achieving long-term gains by
investing in suppliers and partnerships.
3. Comparative market environment is also a
disadvantage in the perspective of entry
strategies.
The first lesson was to recognize catalysts for technology adoption and market opportunity, and
to evaluate those potential markets. While HP had begun selling overseas some time during the
war, the Treaty of Rome in 1956 signaled the opportunity to invest more systematically in
Europe. The advantages of the new market would require a local presence, however, and HP set
out to identify a local site: its first MOA in action. The choice for corporate operations was
Switzerland, selected for its low country risk (a post-war priority), its positive international
business climate, and its “rock-solid currency and financial system” – all criteria common today.
A second site, Germany, was selected for manufacturing for its stable economy, skilled labor
force and large internal market. The German export policies favored HP’s plan to export up to
80 percent of its products.
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Another catalyst for international expansion was found in the Treaty of Montevideo signed in
1960, which established the economic association of Latin American countries committed to
eliminating tariffs and other trade barriers, and gave HP an opportunity to move into new
geographies in the Americas. HP began doing business through two distributors in Brazil in
1963 and established local operations itself in 1964.
Part of this business development road show included mobile demonstration laboratories in the
US and Europe. In Latin America, the “Travelab” took to the seas in the freighter SS
Mormacwave, which sailed from Los Angeles on June 10th 1966. Two staterooms aboard the
vessel housed an exhibit of HP equipment. The “electronics showboat” lists ports of call in
Panama, Columbia, Venezuela, Trinidad, Brazil, Argentina and Peru. The ship was a
supplementary step to participation in Latin American trade shows and technical conferences and
enabled HP to circumvent the myriad customs regulations and transportation challenges of the
regionalthough it’s similar to the concept of a datacenter in a shipping container — and could
likely be leveraged in other regions.
The scramble for “emerging markets” is nothing new to HP. Roughly each decade saw
expansion in a new region: 1950s in Europe, the '60s in Latin America, '70s in Russia and '80s in
China.
A few final lessons that should be called out from the HP archives on international expansion.
On partnerships: start by selling through local representatives… but don’t be afraid to cut
and run especially if staying could damage your reputation. HP began distributing in
India through Scientific Instrument Company, Ltd. (SICO) as an exclusive distributor in
1964. But, in 1970 SICO wasn’t meeting expectations of providing sales and technical
follow-up support. HP terminated its agreement with SICO and signed a new sole
distribution agreement with Blue Star Ltd in India, with which it would later go on
establish a joint venture and eventually buy out altogether.
On time horizon: maintain long term view of the markets, start slowly, be patient and
flexible. In Brazil, Russia, India and China, HP's timeline of activities spans almost 30
years, and evolved from local distribution to eventually becoming an independent
company in each. While there are patterns, each path to market entry has its own
character.
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ENTRY RESTRICTIONS
Hewlett-Packard Company or HP is an American multinational information technology
corporation headquartered in Palo Alto, California, United States. It provides hardware, software
and services to consumers, small- and medium-sized businesses (SMBs) and large enterprises,
including customers in the government, health and education sectors.
The company was founded in a one-car garage in Palo Alto by William "Bill" Redington Hewlett
and Dave Packard. HP is the world's leading PC manufacturer and has been since 2007, fending
off a challenge by Chinese manufacturer Lenovo, according to Gartner.It specializes in
developing and manufacturing computing, data storage, and networking hardware, designing
software and delivering services. Major product lines include personal computing devices,
enterprise and industry standard servers, related storage devices, networking products, software
and 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 also has strong services and consulting business around its products and
partner products. In 2012 it was the world's largest PC vendor by unit sales.
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Trade barriers are government-induced restrictions on international trade. The barriers can take
many forms, including the following:
Tariffs
Non-tariff barriers to trade
o Import licenses
o Export licenses
o Import quotas
o Subsidies
o Voluntary Export Restraints
o Local content requirements
o Embargo
o Currency devaluation
o Trade restriction
Most trade barriers work on the same principle: the imposition of some sort of cost on trade that
raises the price of the traded products. If two or more nations repeatedly use trade barriers
against each other, then a trade war results.
Economists generally agree that trade barriers are detrimental and decrease overall economic
efficiency, this can be explained by the theory of comparative advantage. In theory, free trade
involves the removal of all such barriers, except perhaps those considered necessary for health or
national security. In practice, however, even those countries promoting free trade heavily
subsidize certain industries, such as agriculture and steel.
Impacts of trade barriers on Business
Trade barriers are often criticized for the effect they have on the developing world. Because rich-
country players call most of the shots and set trade policies, goods such as crops that developing
countries are best at producing still face high barriers. Trade barriers such as taxes on food
imports or subsidies for farmers in developed economies lead to overproduction and dumping on
world markets, thus lowering prices and hurting poor-country farmers. Tariffs also tend to be
anti-poor, with low rates for raw commodities and high rates for labor-intensive processed
goods. The Commitment to Development Index measures the effect that rich country trade
policies actually have on the developing world.
Another negative aspect of trade barriers is that it would cause a limited choice of products and
would therefore force customers to pay higher prices and accept inferior quality.
Trade barrier obstructs free trade. Before exporting or importing to other countries, firstly, they
must be aware of restrictions that the government imposes on the trade. Subsequently they need
to make sure that they are not violating the restrictions by checking those related regulation on
tax or duty, and finally they probably need a license in order to ensure a smooth export or import
business and reduce the risk of penalty of violation. Sometimes the situation becomes even more
complicated with the changing of policy and restrictions of a country.
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In the past, many companies relied on spreadsheets and manual process to keep track of
compliance issues related to incoming and outgoing shipments, which takes risks of potential
errors.
The Basics Of Tariffs And Trade Barriers
By Brent Radcliffe on June 18, 2011 AAA
Filed Under:International Trade, Macroeconomics, World Trade Organization
International trade increases the number of goods that domestic consumers can choose from,
decreases the cost of those goods through increased competition, and allows domestic industries
to ship their products abroad. While all of these seem beneficial, free trade isn't widely accepted
as completely beneficial to all parties. This article will examine why this is the case, and look at
how countries react to the variety of factors that attempt to influence trade. (To start with a
discussion on trade, see What Is International Trade? and The Globalization Debate.)
Tutorial: Economics Basics
What Is a Tariff?
In simplest terms, a tariff is a tax. It adds to the cost of imported goods and is one of several
trade policies that a country can enact.
Why Are Tariffs and Trade BarriersUsed?
Tariffs are often created to protect infant industries and developing economies, but are also used
by more advanced economies with developed industries. Here are five of the top reasons tariffs
are used:
1. Protecting Domestic Employment The levying of tariffs is often highly politicized. The possibility of increased competition
from imported goods can threaten domestic industries. These domestic companies may
fire workers or shift production abroad to cut costs, which means higher unemployment
and a less happy electorate. The unemployment argument often shifts to domestic
industries complaining about cheap foreign labor, and how poor working conditions and
lack of regulation allow foreign companies to produce goods more cheaply. In
economics, however, countries will continue to produce goods until they no longer have a
comparative advantage (not to be confused with an absolute advantage).
2. Protecting Consumers A government may levy a tariff on products that it feels could endanger its population.
For example, South Korea may place a tariff on imported beef from the United States if it
thinks that the goods could be tainted with disease.
3. Infant Industries
The use of tariffs to protect infant industries can be seen by the Import Substitution
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Industrialization (ISI) strategy employed by many developing nations. The government
of a developing economy will levy tariffs on imported goods in industries in which it
wants to foster growth. This increases the prices of imported goods and creates a
domestic market for domestically produced goods, while protecting those industries from
being forced out by more competitive pricing. It decreases unemployment and allows
developing countries to shift from agricultural products to finished goods.
Criticisms of this sort of protectionist strategy revolve around the cost of subsidizing the
development of infant industries. If an industry develops without competition, it could
wind up producing lower quality goods, and the subsidies required to keep the state-
backed industry afloat could sap economic growth.
4. National Security Barriers are also employed by developed countries to protect certain industries that are
deemed strategically important, such as those supporting national security. Defense
industries are often viewed as vital to state interests, and often enjoy significant levels
of protection. For example, while both Western Europe and the United States are
industrialized, both are very protective of defense-oriented companies.
5. Retaliation Countries may also set tariffs as a retaliation technique if they think that a trading partner
has not played by the rules. For example, if France believes that the United States has
allowed its wine producers to call its domestically produced sparkling wines
"Champagne" (a name specific to the Champagne region of France) for too long, it may
levy a tariff on imported meat from the United States. If the U.S. agrees to crack down on
the improper labeling, France is likely to stop its retaliation. Retaliation can also be
employed if a trading partner goes against the government's foreign policy objectives.
Types of Tariffsand Trade Barriers
There are several types of tariffs and barriers that a government can employ:
Specific tariffs
Ad valorem tariffs
Licenses
Import quotas
Voluntary export restraints
Local content requirements
Specific Tariffs
A fixed fee levied on one unit of an imported good is referred to as a specific tariff. This tariff
can vary according to the type of good imported. For example, a country could levy a $15 tariff
on each pair of shoes imported, but levy a $300 tariff on each computer imported.
Ad Valorem Tariffs
The phrase ad valorem is Latin for "according to value", and this type of tariff is levied on a
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good based on a percentage of that good's value. An example of an ad valorem tariff would be a
15% tariff levied by Japan on U.S. automobiles. The 15% is a price increase on the value of the
automobile, so a $10,000 vehicle now costs $11,500 to Japanese consumers. This price increase
protects domestic producers from being undercut, but also keeps prices artificially high for
Japanese car shoppers.
Non-tariff barriers to trade include:
Licenses
A license is granted to a business by the government, and allows the business to import a certain
type of good into the country. For example, there could be a restriction on imported cheese, and
licenses would be granted to certain companies allowing them to act as importers. This creates a
restriction on competition, and increases prices faced by consumers.
How to pick your next hotel stay
Import Quotas:
An import quota is a restriction placed on the amount of a particular good that can be imported.
This sort of barrier is often associated with the issuance of licenses. For example, a country may
place a quota on the volume of imported citrus fruit that is allowed.
Voluntary Export Restraints (VER):
This type of trade barrier is "voluntary" in that it is created by the exporting country rather than
the importing one. A voluntary export restraint is usually levied at the behest of the importing
country, and could be accompanied by a reciprocal VER. For example, Brazil could place a VER
on the exportation of sugar to Canada, based on a request by Canada. Canada could then place a
VER on the exportation of coal to Brazil. This increases the price of both coal and sugar, but
protects the domestic industries.
Local Content Requirement:
Instead of placing a quota on the number of goods that can be imported, the government can
require that a certain percentage of a good be made domestically. The restriction can be a
percentage of the good itself, or a percentage of the value of the good. For example, a restriction
on the import of computers might say that 25% of the pieces used to make the computer are
made domestically, or can say that 15% of the value of the good must come from domestically
produced components.
In the final section we'll examine who benefits from tariffs and how they affect the price of
goods.
Who Benefits?
The benefits of tariffs are uneven. Because a tariff is a tax, the government will see increased
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revenue as imports enter the domestic market. Domestic industries also benefit from a reduction
in competition, since import prices are artificially inflated. Unfortunately for consumers - both
individual consumers and businesses - higher import prices mean higher prices for goods. If the
price of steel is inflated due to tariffs, individual consumers pay more for products using steel,
and businesses pay more for steel that they use to make goods. In short, tariffs and trade barriers
tend to be pro-producer and anti-consumer.
The effect of tariffs and trade barriers on businesses, consumers and the government shifts over
time. In the short run, higher prices for goods can reduce consumption by individual consumers
and by businesses. During this time period, businesses will profit and the government will see an
increase in revenue from duties. In the long term, businesses may see a decline in efficiency due
to a lack of competition, and may also see a reduction in profits due to the emergence of
substitutes for their products. For the government, the long-term effect of subsidies is an increase
in the demand for public services, since increased prices, especially in foodstuffs, leave less
disposable income. (For related reading, check out In Praise Of Trade Deficits.)
How Do Tariffs Affect Prices?
Tariffs increase the prices of imported goods. Because of this, domestic producers are not forced
to reduce their prices from increased competition, and domestic consumers are left paying higher
prices as a result. Tariffs also reduce efficiencies by allowing companies that would not exist in a
more competitive market to remain open.
Figure 1 illustrates the effects of world trade without the presence of a tariff. In the graph, DS
means domestic supply and DD means domestic demand. The price of goods at home is found at
price P, while the world price is found at P*. At a lower price, domestic consumers will consume
Qw worth of goods, but because the home country can only produce up to Qd, it must import
Qw-Qd worth of goods.
Figure 1. Price without the influence of a tariff
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When a tariff or other price-increasing policy is put in place, the effect is to increase prices and
limit the volume of imports. In Figure 2, price increases from the non-tariff P* to P'. Because
price has increased, more domestic companies are willing to produce the good, so Qd moves
right. This also shifts Qw left. The overall effect is a reduction in imports, increased domestic
production and higher consumer prices. (To learn more about the movement of equilibrium due
to changes in supply and demand, read Understanding Supply-Side Economics.)
Tariffs and Modern Trade
The role tariffs play in international trade has declined in modern times. One of the primary
reasons for the decline is the introduction of international organizations designed to improve free
trade, such as the World Trade Organization (WTO). Such organizations make it more difficult
for a country to levy tariffs and taxes on imported goods, and can reduce the likelihood of
retaliatory taxes. Because of this, countries have shifted to non-tariff barriers, such as quotas and
export restraints. Organizations like the WTO attempt to reduce production and consumption
distortions created by tariffs. These distortions are the result of domestic producers making
goods due to inflated prices, and consumers purchasing fewer goods because prices have
increased. (To learn about the WTO's efforts, read What Is The World Trade Organization?)
Since the 1930s, many developed countries have reduced tariffs and trade barriers, which has
improved global integration and brought about globalization. Multilateral agreements between
governments increase the likelihood of tariff reduction, while enforcement on binding
agreements reduces uncertainty.
The Bottom Line
Free trade benefits consumers through increased choice and reduced prices, but because the
global economy brings with it uncertainty, many governments impose tariffs and other trade
barriers to protect industry. There is a delicate balance between the pursuit of efficiencies and the
government's need to ensure low unemployment.
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POLITICAL AND CULTURAL VALUES
Countries CANADA CHINA FRANCE
Political views Collectivist/Capitalist Communist Socialist
Cultural values
Canada’s culture draws
influences from its broad
range of constituent
nationalities, and policies that
promote multiculturalism are
constitutionally protected .As
a whole, Government policies
such as publicly funded
health care, higher taxation to
redistribute wealth, the
outlawing of capital
punishment, strong efforts to
eliminate poverty, strict gun
control, and the legalization
of same –sex marriage are
further social indicators of
Canada’s political and
cultural values. Historically,
Canada has been influenced
by British, French, and
aboriginal cultures and
traditions and through their
language, art and music,
aboriginal peoples.
The culture of the people’s
Republic of China is a rich and
varied blend of traditional
Chinese culture with communist
and other international modern
and post- modern influences.
The culture is very much based
on the history of China. Much of
the diversity of china’s culture
seems to come from the
diversity of the Han Chinese
who make up China, and the
national minorities who bring
individual cultural elements
from their cultures, and
contribute to a continuing
development of Chinese culture
that follows cultural changes
nationwide and internationally.
China’s culture thus remains
highly complex, encompassing
ancient traditions and modern
experiments, in what sometimes
appears to be a rather dynamic
but tenuous mix.
The culture of France has
been shaped by
geography, by profound
historical events, and by
foreign and internal
forces and group. France
has played an important
role as centre of high
culture and of decorative
arts. France has also
played an important role
in cinema, fashion and
cuisine. The importance
of French culture has
waxed and waned over
the centuries, depending
on its economic, political
and military importance.
French culture today is
marked both by great
regional and
socioeconomic
differences and by strong
unifying tendencies.
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ECONOMICAL CONDITIONS
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Extrinsic and Intrinsic Motivational and
Hygienic Rewards/Factors
Hewlett-Packard Company following are some of the extrinsic and intrinsic rewards that the
employees can benefit from:
Intrinsic Motivators:
Challenging work
International assignments
Individual and team responsibility given
Opportunity to interact with other professionals in their field, to expand their own
personal networks and to become involved in businesses that display different dynamics.
Extrinsic Motivators:
Awards, bonuses, gift, offers or any such reward given as recognition of good work.
Intrinsic Hygiene Factor:
Status from working in a large multinational company
Good social status or relationship with co-worker is encouraged
A healthy working environment with proper lighting, cafeteria etc is maintained. In fact
HP won an award for the best working environment
Positive attitude of the supervisor i.e. the supervisor is encouraging and appreciative of
the hard work put in by employees
Company policy and administration is fair to the employees
Employees have job security
No discrimination in the workplace.
Extrinsic Hygiene Factor:
Salary
Various trainings are offered including
Lifestyle Improvement Programs
Vacations and Holidays
Bonuses
Free or discount on company products
Company Transport
Disability plans
Maternity Top-Up plan
Insurance, savings and Pension Plans Educational Assistance.
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CSR PROGRAMS
Corporate Social Responsibility: The concern businesses have for the welfare of the society.
Corporate Social Philanthropy: Includes short-term charitable donations.
Corporate Social Initiatives: Includes enhanced and long-term forms of philanthropy.
Initiatives Philanthropy
HP developed Early Infant Diagnosis (EID)
project to enhance early testing and treatment
of infants exposed to HIV. Approximately
200,000 infants were tested in Kenya and
Uganda through EID. The program is also in
the process of expanding to Nigeria.
After the 2011 Japan tsunami, HP and the
Hewlett-Packard Company Foundation
committed more than $2.3 million USD in
technology and cash donations to relief
agencies.
HP is collaborating with leading health
authorities to reinvent processes, modernize
systems, and develop solutions that
dramatically expand access, improve care,
and save lives.
HP reused, recycled, or incinerated for energy
around 103,500 tonnes of nonhazardous
waste, achieving a landfill-diversion rate of
88.1%.
In 2010, HP became a founding member of
the mHealth Alliance to promote
collaboration and market wide solutions to
advance mobile health solutions.
HP’s Education Innovation Fund in India
includes a $1 million to the Sri Aurobindo
Society.
HP has established a goal to reduce HP’s total
GHG emissions from their operations by 20%
by 2020, compared to 2010 levels. HP
reached their goal to cut absolute emissions
from our operations to 20% below 2005
levels by 2013 – two years earlier than
originally committed.
In 2004, the company developed the
Electronic Industry Code of Conduct (EICC).
The company achieved reduction in
electronic wastes through ‘return and
recycling’ programs by eliminating the usage
of toxic material in manufacturing products.
Through a partnership that launched in 2010,
HP is providing the IT infrastructure for Ila
Trust’s. HP technology helps Ila Trust offer
free checkups to more than 10,000 patients in
Delhi, India each month.
For the Haiti earthquake, the HP Company
Foundation and its employees pledged $1
million USD to the American Red Cross and
other aid organizations.
HP’s greenhouse gas emissions from
operations continued their year-over-year
drop, falling nearly 200,000 metric tons – 10
percent – over 2009.
HP donated a $1 million to Zhejiang
University and the National Commission of
the People’s Republic of China for UNESCO.
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In 2012, HP employees worldwide
volunteered more than 1.4 million hours in
their communities. The time they spent giving
back is valued at more than $80 million USD.
HP employees also donated more than $13
million USD to NGOs, schools, and disaster
relief efforts.
In 2010, the HP Company Foundation
worked with the White House “Change the
Equation” campaign and National Lab
Network to promote U.S. students’ interest in
science & technology. HP financed science
lab upgrades and provided project
management expertise and financial aid.
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Hewlett Packard Marketing Mix
Introduction:
The Hewlett-Packard Company was originated in January 1939 by Bill Hewlett and Dave
Packard, two Stanford University classmates. The company incorporated in 1947. Mr. Packard
was appointed as the President and Mr. Hewlett as the Vice President.
Marketing Mix:
8p’s (Product, Promotion, Place, Price, People, Physical Evidence, Process, Positioning)
Product
Hewlett Packard provides infrastructure technology, business process
outsourcing, technology support and maintenance, networking products and
resources, application development and support, consulting and integration
services; enterprise information technology infrastructure, and software, as well
as personal computing and related access devices, imaging and printing related
products and services.
In 2007 HP introduced the TouchSmart PC, an all-in-one PC with a touch-screen
display; HP also introduced a touch-screen consumer tablet PC. In 2008 In April,
HP introduced a full-function, mini-notebook: the HP 2133 Mini-Note PC.
designed for the education market.
Hewlett Packard produces ProLiant, described as an affordable, entry-level rack
and tower server ideal for small to medium businesses, workgroups, remote sites,
and high-performance computing environments.
HP’s product inventory also includes iPaq Glisten Smartphones, with features
such as the ability to schedule meetings, email and text, send photos and manage a
contact list.
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Hewlett Packard Home Networking Products such as the Linksys WRT54G2
Wireless-G router which provides a high-speed Internet connection with several
computers.
HP supports its products with tailored service packages such as the HP Care Pack
designed to cost-effectively upgrade or extend a customers’ standard warranty
with easy-to-buy, easy-to-use support packages. They reduce downtime risks with
support levels from basic to mission critical.
Price
In 2003 Hewlett Packard introduced another first in pay-per-use utility pricing by
offering automated technology that can measure the percent utilization of each
central processing unit (CPU) on HP Superdome servers, thereby offering
significant advantages to customers during slow periods so they do not pay for
processing they do not utilize.
Hewlett seeks to design products with features and esthetics aimed specifically at
consumers. It will first estimate how much consumers will pay, then design
products to sell at that price.
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Place
Hewlett Packard company headquarters are located at 3000 Hanover Street Palo
Alto California.
HP has subsidiaries located in Miami, Ontario, Geneva, Tokyo, Houston,
Singapore, Victoria and Rivonia.
Hewlett Packard operates a worldwide program for independent software vendors,
developers and system integrators called the Developer & Solution Partner
Program (DSPP).
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The HP website provides a partner locator service sorted by small and business,
home and home office, large business enterprises, as well as type of product
needed.
Promotion HP launched a branding initiative called, “One Voice,” to better integrate its vast
line of consumer electronics and computer hardware products.
HP uses many vehicles to tout its business solutions products and services,
including a website with videos and navigation by sorted by business application.
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Key Hewlett Packard employees host blogs covering topics such as networking,
servers, enterprises software and storage.
Hewlett Packard employs a “Trade-in Program” whereby a customer can get a
free quote on an old product and trade it in on eligible products.
HP is promoting an instant $300 savings on its ISS Proliant AMD Servers.
Hewlett Packard is offering limited time 0% financing on qualifying products and
services.
People
Hewlett Packard has approximately 321,000 employees.
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Mark V. Hurd is the chairman, president and chief executive officer.
Hewlett Packard hired Davis Shirk in 2010 to run its worldwide marketing for its
business enterprise unit.
HP founders based their corporate culture on the integration and reinforcement of
critical opposites, known as the Hewlett-Packard Way - creating an environment
that celebrates individualism, but at the same time one that is also wholly
supportive of teamwork.
Hewlett Packard provides a career development website to help guide its
upwardly mobile employees.
HP partners with other organizations such as InRoads and GEM to expand
minority employee representation.
Hewlett Packard provides chat, phone and email customer service options.
Physical Evidence
HPs’ “One Voice” project has a goal of developing a fresh design to its packaging
while staying on brand across thousands of product lines and dozens of packaging
types.
Hewlett Packard boasts on of the most thorough company websites online with a
wealth of content ranging from an overview of products to philosophy and
customer support.
Since 1989 HP has worked to develop environmentally responsible packaging,
recently the company teamed with the UC Santa Barbara Bren School of
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Environmental Science and Management and IoPP to create an up-to-date
guideline for the electronics industry.
Process
In 1997, Hewlett Packard employed the “Hoshin” process in developing its
strategic plan. The Hoshin process is a systematic planning methodology for
defining long-range key entity objectives without losing sight of day to day
business measures.
In 2002 HP divulged the supportive planning behind its planned merger with
Compac including its goal of achieving a leadership position in every major
segment of the information technology industry.
Hewlett Packard has utilized Design for Supply Chain (DfSC) system, which is a
systematic, repeatable process which allows HP to consider the impact of
decisions: on supply chain partners, including suppliers, manufacturing and
logistics service providers.
One of CEO Mark Hurd's first acts as CEO, in flush times, was to cut 15,200 jobs
(10% of the workforce), he has encouraged remaining employees to stress
operational efficiency.
Key pillars of the HP strategy include achieving meaningful innovation with speed and
agility.
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IMC CAMPAIGN
HP’s current IMC campaign consists of different sorts of marketing techniques, both in its
country of origin, US and around the world. These involve quite efficient marketing techniques
such as use of Media (Broadcast like “Television, Newspaper and Magazines” and Internet
Media like “Social Networking Sites, Blogs, Interactive Websites and Viral Videos), Direct
Response and Interactive ( Online ads featuring celebrities, Adverts on websites such as Yahoo,
MTV, MySpace, MSN, Cnet and HP’s own interactive websites.), Billboards and Sponsorship
(Celebrity endorsement). Because HP is a very renowned company, their company practically
promotes itself, and along with their slogan ‘The Computer is Personal Again’, it does entice
those who feel it’s quite a creative slogan. This is as well another IMC campaign that HP is quite
successful in. Along with their strong image around the global markets, HP’s IMC campaign
targets mainly audiences that feel the need of having a powerful laptop, so their campaign
consists of different ways of showing their range of products and their quality of products to
different people of different types. It basically means whether their IMC campaign is consisting
on their country of origin or on their global market operations, their methods of marketing are
divided and distributed to the appropriate audience who they feel will be enticed with their
campaign ideas. This is HP’s IMC campaign method in progress.
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CONTINGENCY STRATEGIES
A few Contingency Plans which Hp could follow are like alternative target groups, those who
HP can always target in case their primary target group is not satisfied with their company such
as those who use computer for entertainment purposes or those who use it for minor purposes.
Another could be introduction to new type of products such as instead of continuously selling
laptops, they could sell tablets, which could enable them to compete in a completely new market.
HP’s contingency plans have to be reliable, sophisticated, strong and will enable to company to
use it without trouble such as monitoring the consumer rate and how they could increase it, what
are the types of products consumer likes and how they can deliver them, how they can make sure
people trust their products etc. Like all big companies, HP is required to have a contingency
plan, as they should always expect the worst.
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REFERENCE
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http://blogs.forrester.com/jennifer_belissent/10-05-10-
hp_archives_lessons_learned_market_entry