Hp Value Chain Strategy

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Executive summary HP Inc. is one of the most competitive IT firms in the world. With its headquarters in Paolo Alto In California, the company operates as a global business established in more than 170 countries across the world. The company specializes in manufacturing and developing computers, network, and storage hardware, developing and designing software applications and offering IT related services and support. The company markets its products to other companies as well as individual users. The value chain network of the firm is primarily made up of office retailers and consumer electronics and their software dealers. But the firm also sells to consumers directly through internet-based e-stores. The company is highly diversified across…show more content…
The company uses its value chain network to sell its peripherals and PCs and strikes a close relationship with its end clients. In order to accomplish this strategy, the company employs e-marketing strategy where it markets its products and services. This strategy has been quite successful since the company has been able to track real-time and immediate customer feedback which then is used in customizing its product lines. The company, therefore, has been very receptive when to the needs of its customers making it leverage a strong customer loyalty (Lee and Billington,1995). HP is rapidly developing its digital technology to be able to sustain its edge. The company recently changed their strategy so that it can strictly focus on the core competencies it has. This has made the firm to dedicate its operations to imaging, storage, hardware and software services. SWOT analysis Strengths The company has earned a strong reputation for doing business in an honest and fair manner. The company has established for a long time high codes of ethics and have ensured that it lives up to those codes. The company has a strong financial portfolio and a huge customer base which is loyal to it. The company also formed a strong merge with another industry leader, therefore, being able to acquire a huge customer…show more content…
Bargaining power of buyers: strong Customers have to be treated with care which means that their needs have to be met and that they must e convinced that by possessing the products of the company, there is value for money, otherwise they may easily shift to other service providers who offer better products and competitively affordable prices. The threat of new entrants: weak Their exit both technical and economic barriers to entry, it is not easy to establish a competitive IT firm that commands global industry, it takes a lot of capital investment and patience, this, therefore, makes new investors to shy off since most industry players have already conquered a bigger portion of the market share, it will take much to grab away just part of this from other players (Lee and Billington,19923). Threat of substitutes: strong There are many firms that deal in similar goods; this means that it is easy to have similar products and services of the company offered by another company. Rivalry among industry players: strong Being that there are many industry players who deal with the same products and who are strategically positioned in the global industry, competition is stiff and only innovation and customer satisfaction can help the company to

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