Hewlett Packard (HP) Company’s Performance

Introduction

Founded in 1939 by two Stanford University graduates, the Hewlett Packard (HP) Company has been successful in the global PC industry. The initial capital investment of fewer than six hundred dollars has grown over the years, and the company has become a global computer brand. Among the main products of the HP Company include personal computers, storage devices, enterprise servers, and different brands of imaging and printing products.

The company is currently a household name in the US and across the other continents. The company has an extensive distribution pattern besides product customization to suit the needs of private customers and companies. This analytical treatise attempts to explicitly review the HP Company’s performance through internal factor analysis.

Internal factor analysis

To carry out a comprehensive internal factor analysis of the HP Company, we have to review the strengths and weaknesses of its business strategies. Despite being a multi-national company, the following were identified as the strengths and weaknesses of the HP Company’s business model.

Strengths of the HP Company

  1. A variety of innovative and very affordable products.
  2. Relatively low debt.
  3. The company has its software and hardware. Hence it can reduce the cost of production and maintenance.
  4. HP is a known brand name.
  5. The use of online marketing platform for products and other services.

Evaluation of the internal factor matrix

To accomplish the internal factor matrix evaluation, we have to focus on the weaknesses and the strengths of the HP Company. The advantages and shortcomings identified above were assigned individual weights based on their significance in running the company (Shapiro, 2005).

The rating column consists of four-factor weights, with each assigned a number from 1 to 2. In summary, 3 represent the minor strengths, and 4 represent the major strengths. The assigned weights were multiplied with the ratings, and the sum of the weighted score was at 3.84, which is a clear indication that the HP Company’s performance is admirable. This is summarized in the table below.

Key internal factors Weight Rating Weighted score
Strengths
A variety of innovative and very affordable products 0.4 4 1.6
Relatively low debt 0.24 4 0.96
The company has its software and hardware, hence it can reduce cost of production and maintenance 0.13 4 0.52
The HP is a strong brand name 0.12 4 0.48
The use of online marketing platform for products and other services 0.11 3 0.33
Total 1.00 3.84

The Strengths

One identifies the significant strengths of the HP Company as a variety of innovative and very affordable products, relatively low debt, and the fact that the company has its software and hardware hence reduced the cost of production and maintenance. These factors were allocated a score of 4 to mean that they fall in the significant strength category. However, the use of an online marketing platform for products and other services was allocated a weight of 3 since the company’s distribution channel does not rely on the online platform only.

The HP Company has an active presence in the US and has an expanding presence in emerging markets such as China, Japan, and Europe. The company’s vulnerability to risk is generally low since it has endeavored to offer high-quality computers that are customized to meet the demands of its clients.

The company offers a competitive price tag and discounts as long term strategies. To stay afloat, the company’s competitive pricing has ensured that it remains the choice for middle-class income earners yearning for quality customized computers (Hewlett Packard, 2014).

The HP Company has embraced amalgamation or consolidation to unite several sub-brands into a single unit to increase its competitiveness and reduce the cost of running the PC business.

The strong amalgamated brand in the form of HP/Compaq PC venture has facilitated the restructuring of effective sales and public awareness of its products to weaken any competitive advantage that its rival may possess. The main success parameters of the HP Company include customer acquisition, customer retention, quality services, and proactive response to different business situations (Blythe, 2006).

The HP Company’s investment in continuous research and development of products and excellent employee retention policy were identified as the other strengths of its business strategy. There is an in-house division to carry out the consultancy duties and estimation of the intellectual capital (Hewlett Packard, 2014).

The product life cycle of the HP Company is measured in months. It takes just the appropriate time necessary for the company to develop interactive products that support its computers. The company has embraced the need for customized, rapidly updating databases of information and software elements for maintenance are necessary to ensure consumer confidence in the HP products (Hewlett Packard, 2014).

The HP Company has endeavored to offer affordable support services to its customers. For instance, through the insurance of products on transit, the HP customers are protected from loss before receiving what they have bought.

Most of the HP products are appropriately tailored in their market segmentation strategies. Besides, the company has embraced the need to make the HP division’s products available to customers when needed. At present, the products are appropriately tailored to meet the demands of their clients (Hewlett Packard, 2014).

Recommendations

In response to the definite competitive advantage of its competitors, the HP Company should resort to developing a proper brand positioning as a marketing strategy that guides the marketing plan and illustrates it’s brand’s essence (Samson and Singh, 2008).

Specifically, the branding strategies should be accompanied by a reorganization of market segmentation to introduce a direct interaction between the company and the clients when selling products (Cheverton, 2004). The company can fortify this relationship by offering free customer online support services besides discounts for different bundles of products (Slack et al. 2005). Through online marketing, the HP Company will be able to acquire almost 40% of the global computer market that is currently controlled by the Dell Company.

Conclusion

The HP Company is currently a household name in the US and across the other continents. The company has an extensive distribution pattern besides product customization to suit the needs of private customers and companies.

Among the strengths of the company include a variety of innovative and very affordable products, relatively low debt, and the fact that the company has its software and hardware, hence reduced the cost of production and maintenance. The company offers a competitive price tag and discounts as long term strategies. To stay afloat, the company’s competitive pricing has ensured that it remains the choice for middle-class income earners yearning for quality customized computers.

References

Blythe, J. (2006). Essentials of marketing communications. New York, NY: FT/Prentice Hall.

Cheverton, P. (2004). Key Marketing skills: strategies, tools, and techniques for marketing success. London, UK: Kogan Page.

Hewlett Packard. (2014). About HP. Web.

Samson, D., & Singh, P. (2008). Operations management: An integrated approach. London, UK: Cambridge University Press.

Shapiro, A. (2005). Capital budgeting and investment analysis. New Delhi, India: Pearson Education India.

Slack, N., Chambers, S., Johnston, R., & Betts, A. (2005). Operations and process management: Principles and practice for strategic impact. Benin, Germany: Prentice Hall.