1

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

2

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

3

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.

4

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

5

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.

6

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.

7

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.

8

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.

9

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.

10

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

11

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

12

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

13

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

14

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.

15

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.

16

ECONOMICAL CONDITIONS

17

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.

18

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.

19

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.

20

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.

21

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.

22

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).

23

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.

24

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.

25

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

26

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.

27

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.

28

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.

29

REFERENCE

http://en.wikipedia.org/wiki/Hewlett-Packard

https://www.google.com/finance?q=NYSE:HPQ&fstype=ii&ei=qjb6UIjWGpHYkQX0i

QE

http://www.strategicmanagementinsight.com/swot-analyses/hp-swot-analysis.html

"Hewlett-Packard Company Financial Statements". United States Securities and

Exchange Commission.

"HP regains PC lead over Lenovo | News". PC Pro. 2013-01-14. Retrieved 2013-04-27.

(http://www.pcpro.co.uk/news/379297/hp-regains-pc-lead-over-lenovo)

Gartner Says Declining Worldwide PC Shipments in Fourth Quarter of 2012 Signal

Structural Shift of PC Market (http://www.gartner.com/newsroom/id/2301715)

"San Jose Mercury News: "HP's acquisitions cement company's No. 1 status." Chris

O'Brien. April 2010". Mercurynews.com. Retrieved 2011-11-30.

(http://www.mercurynews.com/opinion/ci_14893433?nclick_check=1)

"HP Completes Acquisition of 3Com Corporation, Accelerates Converged Infrastructure

Strategy". Hewlett Packard. Retrieved July 7, 2011.

(http://www8.hp.com/us/en/hp-news/online-news.html?facet=2010#/facet=2010)

Vance, Ashlee; Wortham, Jenna (April 28, 2010). "H.P. to Pay $1.2 billion for Palm".

New York Times.

(http://www.nytimes.com/2010/04/29/technology/29palm.html?_r=0)

"Dell gives up bidding war for 3Par Inc.". Winston-Salem Journal. Associated Press.

September 3, 2010. Archived from the original on January 26, 2012. Retrieved

September 3, 2010.

(http://web.archive.org/web/20120126094452/http://www2.journalnow.com/business/201

0/sep/03/dell-gives-up-bidding-war-for-3par-inc-ar-395819/)

"HP Retiree: Quotes and anecdotes About Bill Hewlett". Hp.com. Retrieved 2013-06-13.

(http://www.hp.com/retiree/history/founders/hewlett/quotes.html)

Malone, Michael (2007). Bill & Dave: How Hewlett and Packard Built the World's

Greatest Company. Portfolio Hardcover. pp. 39–41. ISBN 1-59184-152-6.

http://blogs.forrester.com/jennifer_belissent/10-05-10-

hp_archives_lessons_learned_market_entry