Hewlett Packard Case Analysis
Executive Summary
Hewlett Packard (HP) is one of the leading IT company. It was found by Dave Packard and Bill Hewlett. Among the types of services and product provided by HP are computer softwares, laptops, note books, printers and many others. Key competitors for HP are IBM, Dell and Lenove who offer similar product and services. Despite engaging with massive competition, HP still strives to produce innovative products. There are many upcoming products such as The Machine, 3D printers, and introduction of thermal inkjet technology in future from HP. The key business issues faced by HP that are highlighted in this consultant report are security problems in HP online store, inventory management issues and also lacking innovative products.
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The financial services of HP maintains strong relationships with well-known and largest shipping companies around the world (Blauvelt et al. 2012). This has made way for HP to provide economic prices.
Operation cost in Hewlett-Packard has been continuously cut over the past years through drastic measures of cutting down levels of management and outsourcing. This step has increased HP’s profit dramatically. There is still room for improvement in operation side. For instance, enhancing supply chain management and organizing its own newly improved IT databases.
Hewlett-Packard’s fixed cost has been successfully reduced by 3PL model. This model is also known as third-party logistics and provides services such as warehousing and transport integration through outsourcing.
Marketing and sales section of hp is mainly concentrated around production of printers which covers almost half of the operating cost. This product has made HP to become a huge business magnet. On the other hand, Dell which is one of the main competitor of HP makes most profit through PC and servers while IBM which is another competitor have become one of the largest source of IT service. So, the cash flow of HP is not much affected by its competitors
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