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How HP Turns Business Catastrophes to Their Advantage

• Jonathan Brill

Lessons from the company’s “Future Unit.”

In oceanography, a rogue wave refers to a massive wave that pops up, seemingly out of nowhere, when multiple unlikely natural phenomena collide. In the deep ocean, these waves routinely sink large ships. In business, they decimate growth and risk mitigation plans. What does it take for your organization not only to stay afloat when a rogue wave hits, but to actually turn it to your advantage? In this piece, the author describes a 3-part framework for resilient growth that helped HP emerge successful after a year of several potentially business-ending challenges. This approach — which can be adapted to any organization — involves building awareness of potential threats and opportunities on the horizon, adapting behaviors based on these trends, and ensuring a culture of open communication, clear processes, and a healthy balance of hierarchy and independence.

What would you do if one of your largest competitors attempted to force a takeover, your supply chain was obliterated, and your cash cow business imploded — almost overnight?

• Jonathan Brill is a globally recognized expert, advisor and speaker on successful innovation under uncertainty. He is the the author of Rogue Waves : Future–Proof Your Business to Survive and Profit From Radical Change , McGraw-Hill, 2021. He has been the Global Futurist at HP and the managing partner of innovation firms that have generated over $27 billion in new revenue for clients. He has taught in executive programs at Harvard and Stanford Universities. Learn more and find tools at jonathanbrill.com

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HP, Inc. Beyond 2021: Pursuing Strategic Renewal for Growth

On November 2, 2021, Enrique Lores, CEO of HP, Inc., ended the first online huddle of the week with his executive leadership team. The day was an historic one for the Palo Alto-based global company: six years earlier, HP Inc. came into being after the split of the iconic hardware company into two: HP, Inc. and Hewlett Packard Enterprise. As soon as Lores, who had become CEO the year prior, took over the reins at HP Inc., he immediately began to strategize the aggressive transformation of the hallowed company from a product-oriented to a customer experience-oriented company, identifying three areas, each requiring significant innovation:

• Evolution of core business models to adapt to changing customer needs;
• Pursuit of adjacencies in relation to the personal computer and print businesses; and
• Leveraging platforms (capability and asset) and software assets to create new businesses.

The broad and deep change initiative that he had charted for HP would require changes in skills, talent, infrastructure, and culture. To communicate what was required of his team, shift their thinking, and achieve a better multiple on their earnings per share, Lores asked his leaders to focus their attention on three key concepts: (1) Advance the business models of HP’s core businesses; (2) Disrupt using HP’s core assets; and (3) Transform the processes, cost structure, go-to-market capabilities, supply chain and brand of HP.

Perhaps unsurprisingly, discussions at the morning meeting centered around the need to harness the past and drive the future. Markets were changing, HP’s performance was accelerating and the company was seeing new customer behaviors. In addition, there was an inflection point in the PC stack and importantly, 3D printing, where HP had a great position, was attracting a lot of interest. Looking forward beyond 2021, Lores wanted to take stock of how the Advance, Disrupt, and Transform vectors of his corporate strategy were progressing in support of his strategic intent. In particular, he wanted to assess whether progress along the three strategy vectors was helping release the high level of pent-up energy in the company that he sensed in employees throughout the ranks at HP Inc., and whether the vectors were strengthening a level of confidence in pursuing his strategic intent throughout the organization.

Also see: SM347B: Industry Note on Personal Computers, Managed Print Services in the Distributed Workplace and 3D Printing in 2021

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Building the supply chains of the future.

Ernest Nicolas, Chief Supply Chain Officer

September 23, 2022

One of the pandemic’s clearest lessons to business is that global supply chain strategies must be more flexible and agile. For the past several years, macroeconomic-driven business dynamics have forced global supply chains to be redefined and reshaped across every industry.

Many supply chains are still designed extremely lean to maximize efficiency. While lean supply chains strive to constantly reduce lead times and inventory, incentivizing a race to the lowest-cost option, the pandemic exposed the importance of building resilience into these historically lean supply chain models.

Cost is, and always will be, a critically important consideration, but supply chains must find the right balance of efficiency and resilience to mitigate future disruption. In many ways, supply chain resilience can be viewed like insurance. The idea is to minimize the impact of potential points for failure in the supply chain. At the same time, more customers have heightened requirements for sustainability. They want manufacturers to reduce end-to-end lead times and emissions while designing eco-friendly products with extended lifecycles and reuse in mind.

In some instances, businesses will need more geographically diverse footprints. Building resilience while advancing sustainability may require organizations to shift portions of their supplier ecosystem, as well as their manufacturing and distribution footprints, to be closer to their customers. At HP, our ambition is to build a flexible and resilient supply chain—a supply chain that is more adaptable to changes around us, and more sustainable for our customers and the communities we serve. Our design and supply chain teams are working in close partnership to take action.

For example, we have shifted from designing products with single-source components to designing products with multi-source components, wherever feasible. We continued to secure longer-term supply agreements with close partners to put us in a better supply position for capacity-constrained components. And we have further strengthened our business continuity planning capabilities to both predict potential disruptions and take pre-emptive measures to mitigate them.

In the face of volatility, we are also becoming more agile by transforming processes and deploying new digital tools that provide real-time visibility across our value chain. At this point, we have only scratched the surface. In coming years, our investments to build a new digital backbone will enable a supply chain digital transformation that will reap compounding benefits for us and our customers. Our goal is for HP to be faster, more accurate, and more agile when responding to dynamic market conditions. For our customers and partners, this translates directly into improved delivery and shipments.

But it’s not just what we are doing that’s important. It’s also how we are doing it. Across our entire value chain, we have set an ambitious goal: net zero emissions by 2040, with a 50% reduction by 2030. The only way we will meet these goals is by working with all our suppliers to drive continuous progress. In short, our suppliers are critical partners in building the world’s most sustainable and just technology company.

I’m proud of the way our supply chain teams are rising to these challenges. We have manufacturing hubs and supplier ecosystems around the world, and each of our teams wake up every day and look for ways to better serve our customers and partners.

A great example is our manufacturing ecosystem in Mexico, where we have produced desktop PCs for a number of years. HP believes PCs are at the heart of hybrid work and remote learning — two areas where we see significant growth. Our desire to be more resilient and respond to this growth opportunity have put us in a position to expand this regional hub to produce our notebook PCs. To that end, we have entered into an agreement to expand PC manufacturing operations in Mexico.

This expansion also supports our broader environmental and social impact agenda in a number of ways. For example, shorter transit times to North America will reduce CO2 emissions. The new location is a part of HP’s efforts to meet our ambitious 2030 sustainability agenda . As a next step, we will explore opportunities to extend product circularity through regional takeback operations at the site.

We can view the future of HP’s supply chain through the lens of this site — a supply chain that is more flexible and resilient than ever, while also becoming more sustainable, in service of a net zero carbon, circular economy.

Now is the time to turn the supply chain challenges of the past few years into opportunities by building the stronger, more resilient, and more sustainable supply chains of the future. I could not be more excited to work with our manufacturing partners, suppliers, and governments around the world to extend our footprint in a way which benefits our people, our companies, and our shared planet.

©Copyright 2022 HP Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the expresswarranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

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Case study: How HP promotes sustainability among its suppliers

HP is a global technology leader, seeking to create technology that makes life better for everyone, everywhere – every person, every organisation, and every community around the globe. HP engages with its suppliers in multiple ways to understand their sustainability performance, identify and address issues, and drive ongoing progress.     Tweet This!

This case study is based on the 2020 Sustainable Impact Report by HP , prepared in accordance with the GRI Standards, that can be found at this link . Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

To minimise the potential for supply chain-related risks, HP works with its suppliers and other stakeholders in a wide range of ways to promote responsibility, so as to create an ethical, sustainable, and resilient supply chain. In order to promote sustainability among its suppliers HP took action to:

• use a supplier Self-Assessment Questionnaire
• conduct supplier audits

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With this case study you will see:

• Which are the most important impacts (material issues) HP has identified;
• How HP proceeded with stakeholder engagement , and
• What actions were taken by HP to promote sustainability among its suppliers

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What are the material issues the company has identified?  

In its 2020 Sustainable Impact Report HP identified a range of material issues, such as energy use and GHS emissions, human rights, product and operational health and safety, diversity and inclusion. Among these, promoting sustainability among its suppliers stands out as a key material issue for HP.

Stakeholder engagement in accordance with the GRI Standards 

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups HP engages with:   

How stakeholder engagement was made to identify material issues

To identify and prioritise material topics HP engaged with its stakeholders through interviews with a wide range of internal and external stakeholders and an employee survey with more than 1,400 responses.

What actions were taken by HP to promote sustainability among its suppliers?

In its 2020 Sustainable Impact Report HP reports that it took the following actions for promoting sustainability among its suppliers:

• Using a supplier Self-Assessment Questionnaire
• HP’s supplier Self-Assessment Questionnaire (SAQ) includes detailed questions around social and environmental management and practices. As well as assisting HP to evaluate risk, identify areas for improvement, and determine a firm’s inclusion in its audit programme, self-assessment helps suppliers become more familiar with HP’s expectations of conformance to its Supplier Code of Conduct. During 2020, 167 production suppliers and 13 nonproduction suppliers completed SAQs.
• Conducting supplier audits
• HP’s supplier audit process is an essential component of its risk assessment framework and a key mechanism for identifying opportunities for sustained improvement with its suppliers. Supplier audits measure conformance with all provisions of the HP Supplier Code of Conduct in the areas of labour, health and safety, environmental, ethics, and management systems. HP also works with its final assembly suppliers to confirm they are conducting risk assessments of companies in their own supply chains that represent approximately 80% of their spend and auditing 25% of sites determined to be high risk, based on the RBA Code of Conduct. In 2020, HP completed 137 audits of production suppliers, product reuse and recycling vendors, and nonproduction suppliers, as well as three other assessments of production suppliers. HP also conducts targeted assessments to supplement its comprehensive audits, focusing on specific risk areas, including vulnerable workers (such as student, dispatch, and foreign migrant workers) and health and safety (including fire safety and emergency preparedness).

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 308-1 New suppliers that were screened using environmental criteria

2) Disclosure 414-1 New suppliers that were screened using social criteria

Disclosure 308-1 New suppliers that were screened using environmental criteria does not correspond to any SDG.

Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:

• Sustainable Development Goal (SDG) 5 : Gender Equality
• Targets: 5.2
• Sustainable Development Goal (SDG) 8 : Decent Work and Economic Growth
• Targets: 8.8
• Sustainable Development Goal (SDG) 16 : Peace, Justice and Strong Institutions
• Targets: 16.1

78% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that  responsible companies can look to the future with optimism .

7 GRI sustainability disclosures get you started

Any size business can start taking sustainability action

GRI, IEMA, CPD Certified Sustainability courses (2-5 days): Live Online or Classroom  (venue: London School of Economics)

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• Identify your most important impacts on the Environment, Economy and People
• Formulate in group exercises your plan for action. Begin taking solid, focused, all-round sustainability action ASAP. 
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See upcoming training dates. References:

This case study is based on published information by HP, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://www8.hp.com/h20195/v2/GetPDF.aspx/c07539064.pdf

Note to HP: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us .

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Hewlett-Packard Case Study Introduction

Hewlett packard history timeline, hewlett packard swot: strengths, hewlett packard swot: weaknesses.

• Computers, Desktops, Printers & Imaging Products Printers & All-in-ones Workstations, and laptops
• Smart-phones, Scanners & Fax, Ink, Toner & Paper & Handhelds

Marketing research and development of the company

Market segmentation and target market, customer relationship management program, strategy and implementation, hp case study conclusion.

Hewlett-Packard Company is an international company incorporated in the United States of America as an information and technology company; it is one of the world’s largest technology company with its headquarters at Palo Alto; California.

It is involved in the business of developing hardware, software, computing, printing, and digital imaging; in terms of sales, it is ranged world’s second largest company in sales volume of desktop computers, servers, peripherals, and services. Other than the personal and corporate computer devises, it also makes other computer preferential devises like the printers (HP Official website, 2011).

The company was incorporated on August 18, 1947, by two friends; Bill Hewlett and Dave Packard who were graduates in electrical engineering from Stanford University; o n November 6, 1957, the company was register as a public company. Since its incorporation, the company has been performing well and recording a profit and technological development.

Despite global financial crisis of 2007, HP was able to make a profit of $115 billion in 2009; the largest position of the amount came from sale of hardware devises but services offered about $40 billion of the profits.

This was a 100milion increase from the one reported in 2007, which was $104 billion in 2008 the company was the number one producer and seller of inkjet, laser, large format and multi-function printers market, and hardware’s.

There have been major changes which of late include in 1999 a spin-off of part of its business as Agilent Technologies . In 2008, there was yet another acquisition where EDS was taken over by Compaq company in after the successful deal, the net worth of the combined companies was US$ 118.4 Billion in 2008; in the following year, the company was ranked nine by Fortune 500 .

In November 2009, there was another acquisition of 3Com ; despite after the completion of the deal, the next target was Palm Company which was completed in April/May, 2010 at $1.2; the acquisitions where part of strengthening the companies operating base and improvement of services.

Of the sales recorded the company records over 85% of its sales from sales of computers; about 50% of the company’s sales take place outside the United States; some of the main competitors of the company are Lexmark International, Inc.,apple Computer, Inc., International Business Machines Corporation, Dell Inc., and Toshiba Corporation (HP Official website, 2011).

The company already has a strong brand name in the computer world; with the strength within and outside the United States; the strength has enabled it to develop appropriate infrastructure, personal computing and access devices, global services, and imaging and printing services. The diversification that the company has been able to attain offers it with an ever increasing sales and competitiveness.

Other than the company itself, the companies that it has acquired are also doing well. With this even after introducing the new products, it will be easier for it to sell.

There is the expertise that the company boosts of. This again is the one gotten from the acquired companies and the one that it has developed over the years. Using this, the company should come up with measures that are aimed to counter competition by offering quality to the clients.

The name and the market structure of the company is strengthened by its effective management team who are able to make intervention on products, services and the general approach of the company.

The company has created an environment of greatest dichotomy that seems to support individualism, however the ideology and philosophy of the company supports a high sense of collective responsibility and team work (HP Official website, 2011).

In attempting to counteract the market forces of demand and supply brought about by the advanced technology, myriad of challenges may be encountered on the way. Competition in the industry is high and calls for continuous improvement which is a costly exercise; of late the innovations made by Apple Inc. are one of the challenging issues that the company has; there is much competition in the industry.

Another area of inevitable weakness is an expansion plan which entails diversifying the level of the company activities. This may take different forms. A critical look at geographical expansion depicts a glaring possibility of other stringent market uncertainties. Right at the onset, strategic planning will demand strategic resources, both human and financial, to make any significant move.

Besides, implementation of the proposed market research will require mutual consent from all the affected divisions in the company. This will not only consume time as decisions are being made, but a lot of uncertainties abound especially on the verdict of the company (Varadarajan, 2010).

Products and services

HP is involved in information and technology business where it offers products and services in the line; with time the products and services keeps changing and improving to meet the demands of the people. The products by the company can be divided into five major areas as:

Computers, Desktops, Printers & Imaging Products Printers & All-in-ones Workstations, and laptops

The company makes desktops, laptops, monitors, and central processing units; with the demand so the customer as well as the level of technology, the company ensures that its products are commensurate to the prevailing situation.

There are some simple computers and laptops used for house works and general office work and at the same time there are some complex machines used for programming and in management of large business institutes.

The company is in the business of making printers, fax machines, toners, and other accessories to be used with the products or similar products. When making the different products the company ensures that it meets the current level of technology and the expected quality.

Smart-phones, Scanners & Fax, Ink, Toner & Paper & Handhelds

HP recognizes that the world is taking another route in technology. Respect to this, the recent acquisition of Palm is seen as a strategic move towards this recognition. The era of personal laptops and desktops is slowly coming to an end and replaced by the smart phone.

This is in the efforts as the people seek their independence with time. Palm Company was/ is the producer of Smartphone’s powered by the Palm webOS mobile operating system. This acquisition will help the company to be in a position to participate in the fast growing mobile technology market in the world.

When the company merged with Palm’s, it got the chance to use unique technology by the company called webOS and other informational sharing strategies; other than the technology that the firm will come with, there will be the increased sharing of the human resource personal that the two companies have. This merger is seen as the way that the company is using to venture in the world mobile market.

To venture here there is the need to have the software and the technology that you need incorporated. Very soon we hope to seen smart phones of the Brand of Hp.

When reporting on the merger on April 28, 2010 Todd Bradley, executive vice president, Personal Systems Group, HP said, “Palm’s innovative operating system provides an ideal platform to expand HP’s mobility strategy and create a unique HP experience spanning multiple mobile connected devices.” (Anon, April 28, 2010).

Analyzing the merger from a different angle, it is seen as a way to curb competition; Palm Company was one of the companies that was offering hp competition

Before the above acquisition / merger, the company was positioning itself for the future; what is doing is the development of smaller and smaller (but more efficient) computers. It was initially the Thin film Transistor (T. F. T.) Desktops, then to a less heavy laptop and finally the notebook computers the notebook for instance can fit in the hand bag and more efficient to carry.

HP has a number of services that it sells to their customers; they include computer operating systems and other business related software. Some of the software produced by the company includes enterprises resources software.

In the case a corporate customer is in need of maintenance of their computers, the technical team is used to offer the service. Other services by the company include business outsourcing, IT infrastructure outsourcing, transformational application as well as offering business support services to demanding customers.

Hewlett Packard Market Analysis

Development in technology in different parts of the world where HP operates offers the company a market and window to sell its products. Depending with the segmentation, the population, the technology and the strength of its competitors, HP makes strategic marketing interventions to ensure it remains the choice of majority.

Before developing a marketing strategy, the first thing that the company embarks on is analyzing the current position that it has in the world market. The strategy that the assist the company to analyze itself in two dimensions; market share and Market Growth; when the position has been learnt, then the decisions on the way that the company should adopt should be put in place. Marketing policies have two main agenda as:

• Retaining the existing companies customers and growing the market
• Entering the new venture market and become competitive

After the analysis HP takes an analysis of the internal strength, opportunities and threats offered by the market; strength of the undoubtedly be engineers internal managerial mechanisms. In order to have a competitive edge in selling its product and services, it is advisable for the company to take advantage of its ability to compete favorably with equal players in the market.

A strategic marketing plan is the only way out. Through this arrangement, the company should be able to adopt different modalities and outreach programs of reaching out to its consumers.

In a market mostly controlled by price levels rather than quality, it will be an open strength for the company to explore more on quality than price. In retrospect, strategic marketing plan should be in a position to explicitly document the various channels that can be used by the company to allocate more resources towards improving quality (Hsuen-Ho & Jia-Wei, 2010)

To ensure that the company meets demands of different category of people, the management divides the marketing using three parameters as demographics, economic situation, location/place, and price.

Generation Y is fast adjusting to current technology and they are willing to adopt the nest high technology that is affordable. On the other hand, the older generations are more likely to be interested with basic product that will meet their demand. Depending with the component and the strength that a certain machine has, the cost follows suit.

The approach ensures that the company can produce products of high quality and be able to sell them at an affordable price; the research and development center ensures that there is high innovation and invention to make the company’s products the products of choice by customers.

HP operates one of the world’s most successful customer care service, the service ensures that customer complaints are well handled and addressed with immediate effect. Other than addressing customers issues, the department are involved in offering corporate responsibility tasks that are aimed at improving customer relations and improving their strategies (Constantinides, 2006).

As much as the company can be commended on its advertising models, the use of online advertising should be increased. This is for the old business and new venture; there are many advantages that come with online marketing and advertisement; in the hard economic times and the opening of regional and international trade.

One of the remedy that have been proposed, to try and fight global financial crisis is the enhancing the international trade. This trade will be enhanced at low costs if online marketing is embraced by both the trader and the customer. The education level that the world is continuously undertaking will also be another boost.

The growing population of the youth who are finding the world with the technology in place is more likely to adopt it. Despite the growing need and the advantages that come with the mode of advertising, there is the population that the mode of advertizing cannot cater for at any one time, thus a blend of the two is required (Vorhies, Morgan & Autry, 2009).

On the other hand the new venture of the mobiles is not the core business of the company; it should not be misinterpreted to get the major focus of the company. The company should then embark on campaigns to gain an increased customer loyalty and building a strong brand name. The only way that this can be attained is by adopting more and more technology advancement.

The more efficient the company will become the more the demand for its products. Innovation is the way forward that the company should adopt in its efforts to ensure that the customers remain loyal. There is also the simplification of the computer devises. The laptops and the desktops should be made as simple as possible to carry around or keep in the ever reducing office/ home places.

In this the users will not see it as a burden and can still prefer them. The other way that the company can keep afloat in the changing business environment is the diversification of business as well as recognizing other areas of business.

This has been seen through the mergers that the company has of late, as discussed above the merger with 3Com were deliberate measures that were targeted to get in the Chinese market. In 2002 with Compaq Computer Company, this was another way of neutralizing the competition as well as to get more and more customers.

With current competition, HP should consider adopting the “blue ocean theory” of sales and marketing. This is a recent theory that was developed in 2005 by W. Chan Kim and Renée Mauborgne of The Blue Ocean Strategy Institute, the theory focuses on target of the untapped markets instead of focusing on the already populated area.

The main concern and advocacy of the theory is that there is always a niche market that is not fulfilled by current market situations, thus a company needs to venture in thus areas more than the concentrated ones. By areas, the theory is of the option that it can be physical location or can be a market niche that needs are not met by the prevailing condition (Bell, 2011).

The success of HP as the second largest information and technology firm in the world can be attributed to its effective management team and orchestrate team. The management makes strategic decisions when to ensure that the firm remains competitive in the fiercely competitive world.

Research and development team is mandated with the task of advising the management on the best products and services to offer the market; the department works closely with sales and customer service to incorporate customer needs and demands.

To improve their market volume, the company should use strategies advocated by Blue-ocean theory; the approach focuses on establishing niche markets instead of concentrating with highly concentrated markets.

Bell, K. (2011). Blue Ocean Fiction. Harvard Business Review , 89(5), 142-143.

Constantinides, E. E. (2006). The Marketing Mix Revisited: Towards the 21st Century Marketing. Journal of Marketing Management , 22(3/4), 407-438.

HP Official website.(2011). Hewlett-Packard Company. Retrieved from https://www8.hp.com/

Hsuen-Ho, H., & Jia-Wei, T. (2010). A Model of Marketing Strategic Alliances to Develop Long-Term Relationships for Retailing. International Journal of Business & Information , 5(2), 151-172.

Varadarajan, R. (2010). Strategic marketing and marketing strategy: domain, definition, fundamental issues and foundational premises. Journal of the Academy of Marketing Science , 38(2), 119-140.

Vorhies, D. W., Morgan, R. E., & Autry, C. W. (2009). Product-market strategy and the marketing capabilities of the firm: impact on market effectiveness and cash flow performance. Strategic Management Journal , 30(12), 1310-1334.

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Home » Management Case Studies » Case Study: Competitive Advantage of Hewlett Packard (HP)

Case Study: Competitive Advantage of Hewlett Packard (HP)

Hewlett Packard popularly called HP is a company that provides technology solutions to consumers, businesses and all forms of institutions worldwide. The company later expands its operations to IT infrastructure, personal computing and access devices, global services and imaging and printing services. The company is known throughout the world by operating in more than 170 countries around the world. The mission of the company is to facilitate how technology and services can assist individuals and institutions in addressing their problems and challenges so as to realize their dreams. The company applies new thinking and ideas come out with basic and valuable experiences with the technology with her IT corporation headquarter in Palo, Alto, California, USA. The company has been maintaining a lead among her contemporaries due to the effective strategic planning of the company and this has been jealously guided by the company in virtually all her businesses.

How Competitive Advantage helps HP Company

HP Company being one of the world largest IT companies with a quarterly revenue of approximately $97.1 billion is able to maintain such a wonderful record through the sustainable competitive advantage over the competitors. The sustainable competitive advantage has benefited the company in so many ways that she has no other choice other than sustaining such record. The gained competitive advantage has increased the company’s revenue tremendously. In year 2006, HP recorded a much better revenue of $91.7 billion against the rival, IBM with $91.4 billion. In year 2007, the annual revenue of the company was jacked up to $104 billion to become the first IT company reported to have a revenue of more than $ 100 billion, it doesn’t stop there, acquisition of the EDS in 2008, also jacked up the revenue to $118.4 billion. All these achievements in terms of boosting in the revenue are products of the gained competitive advantage.

The competitive advantage gained and sustained ever since by HP can be also attributed to her leadership position in the world technology with groups strategically assigned to drive industry leadership in main technology areas. The Personal Systems group are responsible for the lead in the business and consumer PCs, mobile computing equipment’s and work station. In the same manner, the imaging and printing group is responsible for the successes recorded in all forms of printing devices (personal and commercial printing), printing supplies and the enterprise business group is in charge of all business products. The performance of each of these groups among others is what makes HP what it is today among her equal.

In addition HP became the largest world seller of personal computers as a result of her competitive advantage. In January 2010 a report from Gartner and IDC (Market Research Firms) shows that there is a wide gap between HP and Dell with HP taking 8.3% market share lead at the end of 2009. It was equally reported that HP is the 6th largest world software company.

HP Company is equally reported in year 2008, to have retained the global leadership position in Jacket, laser, large format and multifunction printers market and at the same time the second IT service provider throughout the world. All these benefits/achievements do not come by chance it is as a result of being able to maintain some degree of superiority over the competitors. This results in to competitive advantage and the benefits being discusses the created values based on the competitive advantage.

Analysis of Competitive Advantage in HP Company

HP is able to achieve and sustain competitive advantage with her distinctive competencies . First of all, the company is committed to simplifying technology experiences for all its customers. This is applicable to all the services rendered ranging from printing, personal computing, software, services and IT infrastructure. This is very important since it assists in making virtually all the HP products usable by the intended users by putting the customers first.

There is no way one can analyze the competitive advantage of HP Company without discussing the HP values; HP values is associated with the complete adherence to the ways or paths set out by the founding HP leaders. These unique ways account for the decision-making and the firm’s advancement since it is just like a roadmap. Also, HP pioneers based the corporate culture on the integration and reinforcement of critical opposites. This is achieved by simultaneously creating an environment that both celebrates individualism and at the same time supports the team work. The beauty of it is that such a practice will allow the company to tap from the benefits of both approaches as the case may be and also to neutralize their associated risks.

Another way by which the competitive advantage of HP Company is sought is through her concept of developing cross functional individuals. Unlike other companies that just hire staffs and train them for a specific job requirement to be assigned to such staffs throughout their stay in the organization, HP makes sure that all her employees move more than 4 to six functional areas within the company to allow them to work in more than one departments of the company and thereby effectively managing the organizational knowledge through effective sharing among her staffs. It has been widely agreed that in this knowledge era, effective knowledge management will surely lead to achievement of competitive advantage.

The quest for developing employee has always been the strength of HP company in attaining competitive advantage since this makes the company to achieve effective organizational change considering the rampant changes in the business organizations. Since 1980, HP has been engaged in extensive employee retraining program called Software Job Skills (SJS). Personnel who might ordinarily be laid-off underwent serious retraining the complex set of required skills and techniques. This makes the company to be able to sustain her competitive advantage since the employees always continue to be relevant and compliant with the new trend organizational need and employee are considered important in the performance of every organization.

Organizational competitiveness is derived by the implementation of knowledge management and its associated benefits. Knowledge management helps in reducing the production cost as a result of the possibility of reusability. This allows the organization to be able to offer services of the same quality or even better than that of its competitive at a relatively low cost. This is an important way of gaining competitive advantage. In addition, the implementation of knowledge management brought about enhanced employee productivity and coordination which has a resulting positive effect on organizational performance .

Another important factor is early delivery or ubiquitous service deliver powered by the real time communication facility. It is a wise saying of HP as quoted as follow “If only HP know what HP knows!” It means that the required knowledge and skills for solving your problem resides somewhere within the company. This means that the company has achieved a lot through effective communication. All these account for achieving sustainable competitive advantage. There have been series of academic evidences responsible for the early delivery experienced in the company due to regular improvement and enhancement of the supply chain .

Full optimization of the business supply chain cannot be achieved using only the Operation Research (OR) approach in this demanding fast-paced ubiquitous business environment of the globalized era. Using OR alone will require a lot of time which might result in to delay in the service delivery and thereby negatively affect customer satisfaction . HP strategic planning and modeling (SPaM) came out with a more efficient approach which combines the optimization ability of OR and scenario analysis of the expert knowledge to arrive at an effective supply chain approach capable of solving complex supply chain decision problem for HP’s imaging and printing group of company. the earlier the customers can get the required service the more satisfied they are, the efficient supply chain of HP has been of the secretes of the company’s sustainable competitive advantage.

It ha equally been argued that the risk associated with supply chain are related to product demand, component cost and availability uncertainties and they all affect the company’s revenues and profits. Procurement management group is formed in HP and they developed and implemented a mathematical model, business process and software to estimate and manage risks associated with supply chain. This has brought a lot of benefits to the company. To the extent that in year 2006, HP was able to manage $7 billion of her spending by saving only material cost of not less than $128 million. This really maximizes the company’s profits and contributes to the sustainable competitive advantage of the company.

The products of HP are always better than that of her competitors and such are refined and re-branded from time to time to meet the changing technological needs of the customers. Just in November 2009, HP StorageWorks X9000 was introduced as the new network storage system which is primarily designed to meet the emerging trend of the explosive data growth and to enhance the performance of the file-based applications using scale-out network storage that has the ability to manage information efficiently using a single namespace. This has fetched the company more popularity in the networking society since such an innovation is needed in virtually all organizations that deal with large data. The StorageWorks is very efficient in storing data and it is known for relatively low down time.

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Data courtesy 6

HP leverages its own technology to create final parts 

Data courtesy 12

Accelerating the product lifecycle, from prototyping to jigs and fixtures and final parts 

Data courtesy 11

Improving performance and lifespan of bearings with more complex designs 

Data courtesy 10

Reacting to market requests more quickly

Data courtesy 13

3D printed grippers from HP 3D Printing transform manufacturing automation

Data courtesy 17

Optimizing medical equipment assembly with 3D printing while optimizing cost and lead time

Data courtesy 16

Producing more comfortable, more versatile orthotics

Data courtesy 14

SmileDirectClub

Mass customization of dental aligner molds delivering straighter smiles to millions 

Data courtesy 18

Clemson University 

Turning imagination into innovation 

Data courtesy 19

Szent István University

Bringing 3D printing to the next generation of engineers

Data courtesy 24

HP 3D Printing helps Cupra launch León Competición racecar

Data courtesy 26

Skorpion Engineering

Redesigning and customizing motorcycle parts with 3D printing

Data courtesy 27

Producing  lightweight, customized parts with complex geometries

Data courtesy 25

Accelerating manufacturing with metal 3D printing

Data courtesy 20

Weerg can design without limits and surpass the possibilities of traditional 3D printing.

Data courtesy 21

Forecast 3D

Accelerating business growth by moving from prototyping to full production runs

Data courtesy 22

GoProto 

Ropes Edge relies on GoProto as a trusted resource to rapidly design, test, and 3D print quality parts

Data courtesy 23

Keeping customers competitive by staying on the cutting edge of engineering, prototyping, and manufacturing

Data courtesy 28

Materialise enables Avular to produce customized, on-demand parts for drones 

Disclaimers

The content of this site is for information purposes only and it is showing the product configuration for the US market only. Availability, pricing, product configuration and specifications may differ according to geographical location, local laws and practices. Please contact us or talk to your local HP 3D Printing representative for further information or for product configurations specific to your local country. 

• Data courtesy of Breezm
• Data courtesy of SmileDirectClub
• Data courtesy of Clemson University
• Data courtesy of Cupra
• Data courtesy of Satair and Fast Radius
• Data courtesy of HP Inc. 
• Data courtesy of Kupol
• Data courtesy of Horizons Optical
• Data courtesy of ED Lighting
• Data courtesy of Gimatic
• Data courtesy of Bowman Additive Production
• Data courtesy of Aereco S.A.
• Data courtesy of CNC Würfel
• Data courtesy of CGX
• Data courtesy of Heygears
• Data courtesy of Everex s.r.l
• Data courtesy of EBK-Hungary Kft
• Data courtesy of Weerg
• Data courtesy of Forecast 3D
• Data courtesy of GoProto
• Data courtesy of Jabil
• Data courtesy of Volkswagen and GKN
• Idea: Alvaro Dal Farra, Concept and design: Codoro Studio, 3D Printing with HP MJF: Skorpion Engineering, Videos and photos: Cristopher Breda
• Data courtesy of Ubi Maior Italia
• Data courtesy of Avular
• Data courtesy of Satair

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