Professional Documents
Culture Documents
By:
2K10MKT15 Md. Kalim Ahmed
2K10MKT16 Monodeep Basu Roy
2K10MKT17 Mukesh Kumar Sinha
2K10MKT18 Nilanjan Das Adhikari
2K10MKT19 Nirupam Saha
2K10MKT20 Pankaj Kumar
2K10MKT22 Pritha Chakraborty
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To be Covered:
Brief History Of HP
Its Improvement over time
HP Market share over time
Supply Chain Improvement of HP
HP Existence competency
Marketing Strategy
HP desktop Variety
HP Desktop Reliability
Comparative study: Dell & HP desktop
Product Line Complexity Management of HP
Desktop
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Hewlett-Packard: History
Stanford University classmates Bill Hewlett and Dave Packard
founded HP in 1939. The company's first product, built in a Palo
Alto garage, was an audio oscillator—an electronic test instrument
used by sound engineers.
One of HP's first customers was Walt Disney Studios, which
5
Contd…
In 1984, HP introduced both inkjet and
laser printers for the desktop
On March 3, 1986, HP registered the HP.com
In the 1990s, HP expanded their computer
product line, which initially had been targeted
at university, research, and business users, to
reach consumers
On September 3, 2001, HP announced that an
agreement had been reached with Compaq to
merge the two companies
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LAST FIVE YEAR RVENUE OF HP DESKTOP
HP Pavilion
8
Contd…with example:
The company’s central research facility, have
proven the existence of the fourth
fundamental circuit element in electrical
engineering
This scientific advancement could make it
possible to develop computer systems that
have memories that do not forget, do not
need to be booted up, consume far less
power and associate information in a manner
similar to that of the human brain.
“memristor” – a blend of “memory resistor” –
which has the unique property of retaining a
history of the information it has acquired
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Marketing strategies
Profile : Profile HP is a technology solutions
provider to consumers, businesses and
institutions globally
Products : Products HP is committed to developing
products, services and information that are
accessible to everyone, including people with
disabilities or age-related limitations
Solutions :Solutions HP offers specific solutions for
your home or business
Target Industry Segments : Target Industry
Segments IT & ITES Automobile, personal usage
& Auto Ancillaries Aerospace & Defense
Manufacturing Industries Engineering Service
Providers (ESP) Consumer goods Architecture &
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construction Services – Telecom, Travel &
Commitment to excellence: HP lab
began an experimental economic
program in 1994
HP Labs developed in-house experimental
economics capabilities instead of relying on
academic institutions for consultants because
business considerations make such consultation
impractical. Business decisions must be made in
a timely fashion, even if they are made with less
than perfect information. HP typically develops its
potential business in three to six months,
depending on the cycle of contract and policy
decisions. Thus, we often design our experiments
in the expectation that redesign and repetitions
are unlikely, except in the most critical situations.
Academic researchers generally want to establish
statistical significance, necessitating replications
11 and increasing the turnaround time.
HP Desktop Varieties:
»HP Pavilion
»HP Omni
»HP All-in-One
»HP TouchSmart PC
»Compaq Presario
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HP Pavillion:
HP Pavillion p6000 series: photo music videos &
surfing: p6500, p6700. p6300
HP Pavillion Slimline s5000 series: compact,
powerful & eleminates the bulk:
HP Pavillion Elite: Designed to deliver speed,
performance & style
Equipped with essential features for everyday
computing, the HP Pavilion Desktop PC is the
obvious choice for regular family use.
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HP Omni:
Simple to set up
Uncluttered your desktop
HP MediaSmart 3.0 software
The new HP Omni PC puts everything you need
in a single package. All it takes is just 3
simple steps – open the box, plug in a single
cable and get your digital life going. Explore a
world of possibilities, with easy access to all
your multimedia and entertainment content
via the HP MediaSmart application.
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HP All in one:
HP Pavilion All-in-One MS220 Desktop PC series
:
HP Pavilion All-in-One MS230 Desktop PC series
HP All-in-One 200-5100 Desktop PC series
HP All-in-One 200-5000 Desktop PC series
Everything you need packed into a slim &
stylish design. The HP All-in-One PC comes
with one power cable for easy setup, so you
can begin your digital adventure right out of
the box. Explore a world of possibilities, with
easy access to all your multimedia and
entertainment content via the HP MediaSmart
15 application.
HP Touch smart PC
HP TouchSmart 600-1200 Desktop PC series
HP TouchSmart 300-1200 Desktop PC series
Easy navigation
Nifty Magnet
Quick access
Galore of Apps
The world’s first multi-touch notebook literally
puts the future right at your fingertips.
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Compaq Presario:
Compaq Presario CQ3500 Desktop PC series
Compaq Presario All-in-One CQ1-1000 Desktop PC
Compaq Presario CQ3400 Desktop PC series
Compaq Presario CQ3300 Desktop PC series
Compaq Presario CQ3200 Desktop PC series
Space-saving design that brings together the
computer system and display monitor into
one stylish package
Technology that’s ready to lend you a hand by
combining performance, productivity and
value More pleasant computing experience
with a quieter internal cooling fan
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HP Desktop continues to disappoint
Reliability
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Main Competitor: Dell
Three Golden Rules of DELL:
1. Avoid inventory
2. Always listen to the customer
3. Never sell indirect.
Sales Of Computer Systems Directly To
Consumers
Elimination of Retail Middlemen
Computer System Construction Based Upon
Individual Customer Needs
Quick Introduction of State Of The Art Technology
Elimination Of Heavy Inventory Investment
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Dell’s Strategic Model
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Dells strategic result:
Effect on working capital
Cash Conv ersion Cycle
0
2000 2001 2002 2003 2004 2005
-10
-20
-30
-40
Reduction of
inventory
Inventories 2005
28-Jan-05
2004
30-Jan-04
2003
Jan-31-03
2002
Feb-1-02
2001
Feb-2-01
2000
Jan-28-00
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DELL BUSINESS MODEL
vDell computer used the same principal to sell
computers. The company focused on selling
customized products directly via mail to shabby
customer.
vDell assured product quality by extensively
pretesting all the configuration options it offered.
vA 24-hour telephone support system comprising
well-trained technical representative provided the
first post-shipment level of support.
vDell serviced its customers with combination of
home based telephone representative and field
based representative.
vDell maintained a month’s worth of component
inventory but it suppliers generally carried
supplemental buffer stock that could be
22 immediately shipped.
Dell PC SUPPLY CHAINS
Custome Custome
r r
PULL
Distributi
Virtual Integration
on
Channel
s PULL
Dell
PUSH
Manufact
urer
Supplier PUSH
Supplier s
s
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Cycle time for production and
distribution
1 Week
US DC
4 – 5 Weeks
Europe Asia
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INFORMATION ON HP MARKET
SHARE
HP is leader of the IT market and equal top with
AT&T in the ITC market
Achieved revenues of $30.7 billion – an 11%
growth
Net profits were $1.8 billion
Its IT market share has declined from 4.9% to
3.7% since 2003 (adding the revenues of
acquired companies)
Has gained share in servers, PCs, outsourcing
and infrastructure software
Has lost share in storage systems and
peripherals
Lacks the full-on approach of Apple
26Lacks the solutions approach of IBM
HP’s Share Grows In Asia Pacific, But
Declines Everywhere Else
In the Americas (of which the USA is by far the
largest component) its share has dropped from
6.5% at the beginning of 2003 to 4.3% in
calendar Q2 2010
In Asia Pacific HP’s market share has grown from
2.2% to 2.6% over the period between Q1 2003
and Q2 2010;
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Dell Beats HP to in Indian Desktop
Market
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Supply Chain Improvement…
Im p ro ve m e n t d u rin g th e e a rly 1 9 8 0 s
Manufacturing cycle time reduced
8-12 weeks ==> 1 weeks
Average inventory reduced
3.5 months ==> 0.9 months
All finished goods inventory eliminated
Importance of response time and transportation time increased
Further improvements should be made on supply chain
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Managing Product Line Complexity: HP Desktop
Hewlett-Packard's team of operations research professionals develops five-step process to
measure cost/value tradeoffs.
Step 1
Identify cost areas impacted by product line complexity. The first step is
to identify which cost areas are impacted by product line complexity. To
avoid overlooking hidden costs, conduct a thorough review of material,
information and financial flows along the value chain.
At HP's consumer PC division, we conducted interviews with operations,
finance and marketing staff to gain a broad perspective on how complexity
impacted
31 their organizations. We subsequently identified the five cost
categories shown in Figure
Step 1
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Thank You…
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