You are on page 1of 23

PRESENTATION BY :

S.M.HASAN SAYEED [145] RAVINDRA SRIVASTAV [141]

PRESENTATION IS BASED

ON THE FAMOUS IT COMPANY

HEWLETT

PACKARD

THE FOUNDERS OF THE HP COMPANY HEWLETT PACKARD


WILLIAM HEWLETT DAVID PACKARD

HEADQUARTER OF HEWLETTPACKARD COMPANY

CEO OF THE COMPANY

MARK V. HURD

INFORMATION ABOUT THE COMPANY:


HEWLETT-PACKARD COMPANY IS ALSO KNOWN AS HP COMPANY. THIS COMPANIES HEADQUARTERED IN PALO ALTO, CALIFORNIA, UNITED STATES. HP IS THE LARGEST TECHNOLOGY COMPANY IN THE WORLD. ITS OPERATES IN NEARLY EVERY COUNTRY. HP COMPANY SPECIALIZES IN DEVELOPING AND MANUFACTURING COMPUTING, STORAGE, AND NETWORKING HARDWARE, SOFTWARE.

HISTORY OF HP COMPANY:
WILLIAM HEWLETT AND DAVID PACKARD WERE GRADUATE ENGINEERING STUDENTS AT STANFORD UNIVERSITY. WHEN THEY FIRST MET. THEY FORMED THE HEWLETT-PACKARD COMPANY IN 1939. THEIR FIRST PRODUCT WAS THE AUDIO OSCILLATOR INVENTED BY WILLIAM HEWLETT IN 1938. DAVID PACKARD THOUGHT UP THE NAME "HP MODEL 200A" TO MAKE THE COMPANY APPEAR MORE ESTABLISHED. HP COMPANY STARTED OUT OF WILLIAM HEWLETT'S GARAGE IN PALO ALTO, WITH A CAPITAL INVESTMENT OF $538 AND A SEARS- ROEBUCK DRILL PRESS.

PRODUCTS OF THE COMPANY:

NOTEBOOK PCS FOR HOME & HOME OFFICE

DESKTOP PCS FOR HOME & HOME OFFICE

GAMING SYSTEMS

PRINTERS

SOFTWARE PRODUCTS

HP BLADES

HANDHELDS & CALCULATORS

SCANNERS AND FAX

DIGITAL PHOTOGRAPHY

ACCESSORIES & PARTS

MONITORS

FIRST PRODUCT OF HP COMPANY

OSCILLATOR
AN AUDIO OSCILLATOR IS AN ELECTRONIC INSTRUMENT USED TO TEST SOUND EQUIPMENT. THE HP MODEL 200A WAS A RESISTANCE-CAPACITANCE AUDIO OSCILLATOR THAT REPRESENTED A SIGNIFICANT ADVANCEMENT IN OSCILLATOR TECHNOLOGY AT THE TIME. THE HEWLETT-PACKARD OSCILLATOR USED AN INCANDESCENT BULB AS PART OF THE WIRING SCHEME TO PROVIDE VARIABLE RESISTANCE. IN 1940, THE WALT DISNEY COMPANY ORDERED EIGHT MODEL 200B OSCILLATORS AND USED THE EQUIPMENT TO TEST THE VARIOUS CHANNELS, RECORDING EQUIPMENT AND SPEAKER SYSTEMS

PRODUCT MIX
A PRODUCT MIX (PRODUCT ASSORTMENT) IS THE SET OF ALL PRODUCTS AND ITEMS , A PARTICULAR SELLER OFFERS FOR SALE IT CONSISTS OF BOTH PRODUCT LINES AND INDIVIDUAL PRODUCTS. A PRODUCT LINE IS A GROUP OF PRODUCTS WITHIN THE PRODUCT MIX THAT ARE CLOSELY RELATED, EITHER BECAUSE THEY FUNCTION IN A SIMILAR MANNER, ARE SOLD TO THE SAME CUSTOMER GROUPS, ARE MARKETED THROUGH THE SAME TYPES OF OUTLETS, OR FALL WITHIN GIVEN PRICE RANGES.

THE WIDTH OF A PRODUCT MIX REFERS TO HOW MANY DIFFERENT PRODUCT LINES THE COMPANY CARRIES. THE LENGTH OF A PRODUCT MIX REFERS TO THE TOTAL NUMBER OF ITEMS IN THE MIX. THE DEPTH OF A PRODUCT MIX REFERS TO HOW MANY VARIANTS ARE OFFERED OF EACH PRODUCT IN THE LINE.

PRODUCT-MIX DECISIONS
REVIEWING THE MIX OF EXISTING PRODUCT LINES ADDING NEW LINES TO AND DELETING EXISTING LINES FROM THE PRODUCT MIX DETERMINING THE RELATIVE EMPHASIS ON NEW VERSUS EXISTING PRODUCT LINES IN THE MIX DETERMINING THE APPROPRIATE EMPHASIS ON INTERNAL DEVELOPMENT VERSUS EXTERNAL ACQUISITION IN THE PRODUCT MIX GAUGING THE EFFECTS OF ADDING OR DELETING A PRODUCT LINE IN RELATIONSHIP TO OTHER LINES IN THE PRODUCT MIX

FORECASTING THE EFFECTS OF FUTURE EXTERNAL CHANGE ON THE COMPANY'S PRODUCT MIX

PRODUCT-MIX ANALYSIS
SINCE TOP MANAGEMENT IS ULTIMATELY RESPONSIBLE FOR THE PRODUCT MIX AND THE RESULTING PROFITS OR LOSSES, THEY OFTEN ANALYZE THE COMPANY PRODUCT MIX. THE FIRST ASSESSMENT INVOLVES THE AREA OF OPPORTUNITY IN A PARTICULAR INDUSTRY OR MARKET. OPPORTUNITY IS GENERALLY DEFINED IN TERMS OF CURRENT INDUSTRY GROWTH OR POTENTIAL ATTRACTIVENESS AS AN INVESTMENT. THE SECOND CRITERION IS THE COMPANY'S ABILITY TO EXPLOIT OPPORTUNITY, WHICH IS BASED ON ITS CURRENT OR POTENTIAL POSITION IN THE INDUSTRY. THE COMPANY'S POSITION CAN BE MEASURED IN TERMS OF MARKET SHARE IF IT IS CURRENTLY IN THE MARKET, OR IN TERMS OF ITS RESOURCES IF IT IS CONSIDERING ENTERING THE MARKET

BCG ANALYSIS
THE MOST WIDELY USED APPROACH TO PRODUCT PORTFOLIO ANALYSIS IS THE MODEL DEVELOPED BY THE BOSTON CONSULTING GROUP (BCG). THE BCG ANALYSIS EMPHASIZES TWO MAIN CRITERIA IN EVALUATING THE FIRM'S PRODUCT MIX: THE MARKET GROWTH RATE AND THE PRODUCT'S RELATIVE MARKET SHARE.

PRODUCT CATEGORIES
ONCE THE ANALYSIS HAS BEEN DONE USING THE MARKET GROWTH RATE AND RELATIVE MARKET SHARE, PRODUCTS ARE PLACED INTO ONE OF FOUR CATEGORIES STARS: PRODUCTS WITH HIGH GROWTH AND MARKET SHARE ARE KNOW AS STARS. BECAUSE THESE PRODUCTS HAVE HIGH POTENTIAL FOR PROFITABILITY, THEY SHOULD BE GIVEN TOP PRIORITY IN FINANCING, ADVERTISING, PRODUCT POSITIONING, AND DISTRIBUTION. AS A RESULT, THEY NEED SIGNIFICANT AMOUNTS OF CASH TO FINANCE RAPID GROWTH AND FREQUENTLY SHOW AN INITIAL NEGATIVE CASH FLOW. CASH COWS: PRODUCTS WITH A HIGH RELATIVE MARKET SHARE BUT IN A LOW GROWTH POSITION ARE CASH COWS. THESE ARE PROFITABLE PRODUCTS THAT GENERATE MORE CASH THAN IS REQUIRED TO PRODUCE AND MARKET THEM. EXCESS CASH SHOULD BE USED TO FINANCE HIGH-OPPORTUNITY AREAS (STARS OR PROBLEM CHILDREN). STRATEGIES FOR CASH COWS SHOULD BE DESIGNED TO SUSTAIN CURRENT MARKET SHARE RATHER THAN TO EXPAND IT. AN EXPANSION STRATEGY WOULD REQUIRE ADDITIONAL INVESTMENT, THUS DECREASING THE EXISTING POSITIVE CASH FLOW.

PROBLEM CHILDREN: THESE PRODUCTS HAVE LOW RELATIVE MARKET SHARE BUT ARE IN A HIGH GROWTH SITUATION. THEY ARE CALLED "PROBLEM CHILDREN" BECAUSE THEIR EVENTUAL DIRECTION IS NOT YET CLEAR. THE FIRM SHOULD INVEST HEAVILY IN THOSE THAT SALES FORECASTS INDICATE MIGHT HAVE A REASONABLE CHANCE TO BECOME STARS. OTHERWISE DIVESTMENT IS THE BEST COURSE, SINCE PROBLEM CHILDREN MAY BECOME DOGS AND THEREBY CANDIDATES FOR DELETION. DOGS: PRODUCTS IN THE CATEGORY ARE CLEARLY CANDIDATES FOR DELETION. SUCH PRODUCTS HAVE LOW MARKET SHARES AND UNLIKE PROBLEM CHILDREN, HAVE NO REAL PROSPECT FOR GROWTH. ELIMINATING A DOG IS NOT ALWAYS NECESSARY, SINCE THERE ARE STRATEGIES FOR DOGS THAT COULD MAKE THEM PROFITABLE IN THE SHORT TERM. THESE STRATEGIES INVOLVE "HARVESTING" THESE PRODUCTS BY ELIMINATING MARKETING SUPPORT AND SELLING THE PRODUCT ONLY TO INTENSELY LOYAL CONSUMERS WHO WILL BUY IN THE ABSENCE OF ADVERTISING. HOWEVER, OVER THE LONG TERM COMPANIES WILL SEEK TO ELIMINATE DOGS

ANNUAL INCOME OF COMPANY


ANNUAL INCOME IN US $ BILLIONS 118.4 104 91.7 88.3

FUTURE PLANS OF HP COMPANY


‡ TO EXPAND ITS BUISNESS WORLDWIDE. ‡ COMPANYS NEXT TARGET IS SOLAR ENERGY POWER. ‡ TO BECOME A NO.1 POSSITION OF IT COMPANIES. HP COMPANY HAS DONE MERGER WITH COMPAQ COMPANY. ‡ TO INCREASE NEW RESEARCHS AND DEVELOPMENTS

CONCLUSION
MANAGING THE PRODUCT MIX FOR A COMPANY IS VERY DEMANDING AND REQUIRES CONSTANT ATTENTION. TOP MANAGEMENT MUST PROVIDE ACCURATE AND TIMELY ANALYSIS (BCG) OF THEIR COMPANY'S PRODUCT MIX SO THE APPROPRIATE ADJUSTMENTS CAN BE MADE TO THE PRODUCT LINE AND INDIVIDUAL PRODUCTS.

THANKING YOU

You might also like