I.

TIME CONTEXT During 2006, the Hewlett-Packard Corporation became the first time ever the worlds largest technology vendor in terms of sales. HP also is now the largest company in worldwide personal computer (PC) sales surpassing rival Dell. The gap between HP and Dell widened substantially at the end of 2006, with HP taking a near 3.5 percent market share lead. For the nine months ended July 31, 2007, HPs revenues and net income rose 13 percent. Revenues reflect increased income from HPs Personal Systems Group and Imaging and Printing Group and higher income from its Enterprise Storage & Servers segment. HP increased its share of that market worldwide to 12.3% in 2007, up from 9.2% in 2006. For the three months ended April 30, 2007, HPs AsianPacific region, comprised mainly of China and India but also including Russia and Japan, accounted for $4.5 billion of HPs total revenue of $25.5 billion.

II.

VIEWPOINT The viewpoint of this study is based on the viewpoint of the Hewlett-Packards Chief Executive Officer and President, as the top ranking executive responsible for the HPs overall operations and performance, for making major corporate decisions, and uniquely positioned for accelerating the development and implementation of HPs highlevel strategies.

III.

STATEMENT OF THE PROBLEM Hewlett-Packard, as recently taking the lead as the worlds largest technology vendor and achieved substantial increased in its revenues, profits and market share,

has the predicament of how they would maintain their standing ahead of its competitors and continuously attain growth.

IV.

OBJECTIVES Short range objective Hewlett-Packard aims to develop and implement a strategy that will help to obtain an increase of 15% in its revenue and attract new customers. Long range objective Hewlett-Packard aims to widen the gap in terms of its market share lead against competitors and maintain market stability, and to continuously support the growth of its products.

V.

AREAS OF CONSIDERATION Hewlett-Packard is a global company, which operates in 170 countries, providing technological solutions to consumers, businesses and institutions. Technological industry has been such a highly competitive market, where companies are competing head to head in order to increase their market share. It would be difficult for a company to maintain its lead. Technology advances too abruptly and consumers are demanding for innovated products and features, and IT companies are competing in satisfying those demands.

VI. ALTERNATIVE COURSES OF ACTION: ACA #1 Hewlett Packard Corporation should focus on Personal Systems Group, Imaging and Printing Group, and Enterprise Storage and Servers. The company should also invest in innovating product and services in these business segments. ACA #2 Hewlett Packard Corporation should concentrate on the fastest growing geographical area for the company which is the Asia-Pacific Region. ACA #3 Hewlett Packard Corporation should implement a no change strategy. It should continue its current operations and observe further actions and developments made by other competitors before innovating new products and services.

ACA#1 SWOT Analysis: Hewlett Packard Corporation should focus on Personal Systems Group, Imaging and Printing Group, and Enterprise Storage and Servers. The company should also invest in innovating product and services in these business segments.

Strengths Leading provider of personal computers and imaging and printing Market leadership Strong financial condition to take financing for innovation Opportunities Expanded Digital Imaging and Printing Portfolio Product innovation

Weaknesses R&D department has significantly less investments compared to historical spending Short life cycle of HP products

Threats Imitation of the product by competitors Increasing competition on imaging and printing

ACA#2 SWOT Analysis: Hewlett Packard Corporation should concentrate on the fastest growing geographical area for the company which is the Asia-Pacific Region.

Strengths Strong Market Position

Successful Strategic Acquisitions Robust revenue growth Opportunities Moving into new market

Weaknesses Lack of in-house management consulting division Financial condition leans very heavily on the state of economy not just in the US but worldwide Threats Intense competition

Fastest growing area for the company Projected slowdown in the IT market

ACA#3 SWOT Analysis: Hewlett Packard Corporation should implement a no change strategy. It should continue its current operations and observe further actions and developments made by other competitors before innovating new products and services.

Strengths

Market Leadership Strong financial condition Opportunities Technological follower Less spending in R&D Department Imitability of the product

Weaknesses Financial condition leans very heavily on the state of our economy not just in the US but worldwide Deteriorating competitive advantage Short life cycle of HP products Threats Increasing competitive pressures Likely entry of new competitor Dells adaptation of selling thru retailers

VII. RECOMMENDATION VIII. CONCLUSION/DETAILED ACTION PLAN