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1HEWLETT-PACKARD
November 20, 2010
ABSTRACT
Name : Denny Irawan
NIM : A0831007
Topics : Hewlett-Packadrd; HP
Pavilion dm4
Total Pages : 22
Hewlett-Packard (HP) is a global provider of personal systems,
imaging and printing products, and technology solutions. The company
offers a wide range of products and services including PCs and related
access devices, imaging and printing-related products and services,
enterprise information technology (IT) infrastructure, and technology
services. The company is the largest player in the inkjet printer and laser
printer market. HP is one of the major companies in the enterprise storage
and servers markets. The company is also the market leader in the global
PC market. It primarily operates in the US and other parts of the world. It is
headquartered in Palo Alto, California.
The market for PC has distinguished itself as one of the fastest
growing segments of the computer industry. Throughout its growth and
development, this market, like many others, has change a great deal as a
result of customer demands. In an effort to cater to these demands,
companies like HP look to market trends to aid in the development of new
products. In its most recent stages, the laptop market has been specifically
influenced by a number of trends.
In this chance the writer would like to analyze about those cases in
Strategic Management implementation includes Company Profile, History,
Culture, Business Strategy, HP Shared Value, HP Corporate Objectives,
SWOT Analysis, PEST Analysis and HP Product Analysis. For the product
analysis the writer choose HP Pavilion dm4.
2HEWLETT-PACKARD
November 20, 2010
CHAPTER II
THEORITICAL BACKGROUND
Strategic Management is an art and science in formulating, implementing,
and evaluating strategic decisions between functions, which make a
possibility for an organization to reach their goal in the future.
Strategic Management includes 3 processes:
The Formulating of Strategies
The Implementing of Strategies
The Evaluating of Strategies
The Levels of Strategic Management
Corporate Strategy
Business Strategy
Functional Strategy
SWOT Analysis includes:
Strength
Weakness
Opportunities
Threat
Strategic Management Model
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November 20, 2010
CHAPTER III
ANALYSIS
Company Profile
Type Public (NYS : HPQ)
Founded Palo Alto, California (1939)
Founder (s) Bill Hewlett, Co-founder
David Packard, Co-founder
Headquarters Palo Alto, CA, USA
Area served Worldwide
Key People Mark V. Hurd, President, CEO & Chairman
Catherine A. Lesjak, CFO
Shane V. Robison, Chief Strategy &
Technology Officer (same role at Compaq)
Rahul Sood, Co-Founder VoodooPC, CTO HP
Gaming
Industry Computer Systems
Computer Peripherals
Computer Software
Consulting
IT Services
Products Computer Monitors
Digital Cameras
Indigo Digital Press
Networking
Personal Computers and Laptops
Personal Digital Assistants
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November 20, 2010
Printers
Scanners
Servers
Storage
Televisions
List of HP products
Revenue ▲ US$ 118.364 billion (2008)
Operating income ▲ US$ 10.473 billion (2008)
Net income ▲ US$ 10.473 billion (2008)
Total assets ▲ US$ 113.331 billion (2008)
Total equity ▲ US$ 38.942 billion (2008)
Employees 321,000 (2008)
Divisions Compaq
Snapfish
HP Labs
ProCurve
EDS
VoodooPC
Website HP.com
The Hewlett-Packard Company (NYSE: HPQ), commonly referred
to as HP, is a technology corporation headquartered in Palo Alto,
California, United States. HP is the largest technology company in the
world and operates in nearly every country. HP specializes in developing
and manufacturing, computing, storage, and networking hardware,
software and services. Major
product lines include personal
computing devices, enterprise
servers, related storage
devices, as well as diverse
range of printers and other
imaging products. Other product
5HEWLETT-PACKARD
November 20, 2010
lines, including electronic test equipment, solid state components and
instrumentation for chemical analysis were spun off as Agilent
Technologies in 1999.
HP markets its products to households, small to medium size
businesses and enterprises both directly, via online distribution
consumers-electronics and office-supply retailers, software partners and
major technology vendors.
HP is the largest worldwide seller of Personal computers,
surpassing rival Dell, according to market research firms Gartner and IDC
reported in third quarter (July-September).
History
William (Bill) Hewlett and David (Dave)
Packard both graduated in electrical engineering
from Stanford University in 1935. The company
originated in a garage in nearby Palo Alto during
a fellowship they had with a past professor,
Frederick Terman at Stanford during the Great
Depression. Terman was considered a mentor to
them in forming Hewlett-Packard.
The partnership was formalized in 1939 with an investment of
US$538. Hewlett and Packard tossed a coin to decide whether the
company they founded would be called Hewlett-Packard or Packard-
Hewlett. Packard won the coin toss but named their electronics
manufacturing enterprise the "Hewlett-Packard Company". HP
incorporated on August 18, 1947, and went public on November 6, 1957.
HP Culture
The founders, known to friends and employees alike as Bill and
Dave, developed an unique management style that has come to be known
as the HP Way. In Bill’s words, the HP Way is "a core ideology includes a
6HEWLETT-PACKARD
November 20, 2010
deep respect for the individual, a dedication to affordable quality and
reliability, a commitment to community responsibility, and a view that the
company exists to make technical contributions for the advancement and
welfare of humanity."
Business Strategy
The success of HP began from 2000 and beyond which HP is
merged with Compaq in 2002. Compaq itself had bought Tandem
Computers in 1997 (which had been started by ex-HP employees), and
Digital Equipment Corporation in 1998. Following this strategy HP became
a major player in desktops, laptops, and servers for many different
markets.
HP markets its products to households, small to medium size
businesses and enterprises both directly, via online distribution
consumers-electronics and office-supply retailers, software partners and
major technology vendors.
HP also exists with HP IdeaLab which is similar to Dell IdeaStrom.
HP IdeaLab (www.hp.com/idealab) provides a web forum on early-state
innovations to encourage open feedback from consumers and the
development community.
They also have HP Labs (or HP Laboratories) is research arm of
HP. Founded in 1966, HP Labs’ function is to deliver new technologies
and to create business opportunities that go beyond HP’s current
strategies.
There is more HP division but they are not related directly to our
analysis. Now, we focused on our major analysis, which lead us to PC
global market. The question is how HP can lead PC global market?
Especially in Indonesia they got a top rank.
HP focused both on PC desktop and PC portable (Laptop). There is
a fact that the demanding of PC desktop is bigger than PC Portable.
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November 20, 2010
According to market research firms Gartner and IDC reported in third
quarter (July-September), the selling of PC desktop increased 12-15%. HP
have enough PC desktop supplied and because they are the biggest PC
company in the world. This condition affects Acer which can’t supply PC
desktop as the market demanding. 80% of Acer PC product is PC portable
(Laptop), so it’s not too good. While Acer concentrate in PC portable
development, the market not respond as they predicted. So, Dell, which
can supply more PC desktop, can beat Acer to the third number as the
biggest PC company in the world, but of course HP is still at the top.
The different also in area served. HP almost served all the
worldwide, including in Indonesia. HP is famous product followed by Acer,
Toshiba, Asus, Sony, BenQ, MSI, and Dell. The main player of Indonesia
PC market is HP and Acer. The strategies of the both company is almost
the same, they concentrate on the most valuable consumers is student,
but it’s only in PC Portable market. The answer is right here, we know HP
not only focused on PC Portable, but they completely focused on HP
desktop. HP can be the best partner of business. They served small to
medium size businesses and enterprises both directly. The key is how to
serve different market all at once. This will affect our other product since
we became famous and well-known as the most existing product. But if
only HP focused on PC portable, they could compete with Acer as the
biggest PC Portable producer. We should know that Acer lead PC portable
market, but not PC desktop.
After that, think about after sales services. HP got 1000 service
point in Indonesia. After sales service is the most important. The
consumer will not hesitate to buy HP product because HP guarantee they
product in the meaning that they can serve you more than a good product.
If you got problem with your PC under HP brand just come to their service
point.
HP are not the most cheapest product, but they focused on quality.
They have International Standard Quality, and also run their TQM (Total
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November 20, 2010
Quality Management). More expensive is not a problem, because the
consumers buy a differentiation.
So, where is Dell? Actually, Dell is not too focused in Indonesia,
because Dell have their own policies. Do you know? Dell product is more
expensive than HP and they only exist in Java Island. But about quality
Dell is still the best. Believe it.
BCG Matrix Analysis
There are four category in BCG Matrix, they are Cow, Star,
Question Mark, and Dog. For HP corporation, they are in Cow category by
using Combination Strategy. Combination Strategy is effective when we
exist in IT industry. Technologies is changing faster without waiting people
to be ready or not. This action is clear when HP always try to develop its
product. Once a month they launch a new series of notebook according to
research and development result. For example, now a day, notebook
should be more good in design. So, HP try to the same strategy through
their notebook. So, for the specific series has introduction, growth,
maturity and decline phase. It’s normal because the market always
prepare for the newest technology. Dell, the strongest HP competitor try to
design notebook which is featured the newest technology by Inspiron
series.
Product Life Cycle
We talk about professionalism in this analyze. HP are in Maturity
phase and will never in decline phase as technologies movement is being
followed. HP comes to our daily live with new product and improvement.
We never stop to find what’s the new from HP? Or what’s the new from
the notebook market nowadays. The company try to keep their quality,
while try to reduce the price as possible. What this company thing is not
only about distributing technology to our live but also how to make our live
become better with technology. The fact show HP effort in Top Green.
Even though they got second rank, under Dell, but it shiw their
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commitment to make our live become better. Big company always think
the augmented value of their business.
Industry Environment Analysis
IT industry is one of the fastest growth industries, because they
have a role to put technology into our live. We will begin this analysis from
the customer. Actually, IT industry have complex segment. For example;
Dell is familiar as a businessman PC, while HP is enterprise business PC.
But they are not stop on those segment only. Dell is starting to focuses in
Gaming PC by launching Alienware Notebook. HP launch HP Pavilion,
which is in multimedia notebook category. Both of the company is starting
to promote their product to the student through university or school. The
question is why? They believe that this market is very potential. Here we
talk about education base on IT or people used to called as smart school.
Smart school need IT stuff to support their learning material. So, IT
company can collaborate with this school to give support technology while
trying to promote their product.
About the competitors, they almost do the same thing and the same
way. The different take place in sales after service and product quality. We
consider to how strong they can give augmented product to their
customer. We talk about value. The value is different, so that it causes the
positive and negative respond through specific brand. Nowadays IT
company have indirectly competition in Top Green level. The latest result
show that HP just got the second rank, while the first is Dell. Top Green
level only included company in United Stated.
HP Shared Value
Passion for customers
HP put their customers first in everything they do.
Trust and respect for individuals
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November 20, 2010
HP work together to create a culture of inclusion built on trust,
respect and dignity for all.
Achievement and contribution
HP strive for excellence in all they do; each person's contribution is
critical to HP success.
Results through teamwork
HP effectively collaborate, always looking for more efficient ways to
serve their customers.
Speed and agility
HP are resourceful and adaptable, and they achieve results faster
than their competitors.
Meaningful innovation
HP are the technology company that invents the useful and the
significant.
Uncompromising integrity
HP are open, honest and direct in their dealings.
HP Corporate Objectives
Customer loyalty
HP earn customer respect and loyalty by consistently providing the
highest quality and value.
Profit
HP achieve sufficient profit to finance growth, create value for their
shareholders and achieve their corporate objectives.
Growth
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November 20, 2010
HP recognize and seize opportunities for growth that builds upon
their strengths and competencies.
Market leadership
HP lead in the marketplace by developing and delivering useful and
innovative products, services and solutions.
Commitment to employees
HP demonstrate their commitment to employees by promoting and
rewarding based on performance and by creating a work
environment that reflects their values.
Leadership capability
HP develop leaders at all levels that achieve business results,
exemplify their values and lead them to grow and win.
Global citizenship
HP fulfill their responsibility to society by being an economic,
intellectual and social asset to each country and community where
they do business.
HP SWOT Analysis
Strength
First, we should know that HP gives many social
contributions in Education, Health, and Community. They force
market in different way through caring and respect to the
customers. It’s included in HP shared value. They also have big
range of distribution through the nations and the world with a lot of
product line. The most famous is its printers, but the selling of its
desktop in the world got the top rank. HP do not just distribute their
product logical functionality, but also the extra functionality such as
software and support application. Of course, we do not talk about
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November 20, 2010
windows here; we talk about software which is created by HP itself.
So, actually HP products support each other.
Weakness
I don’t think it’s the weakness, but it’s the fact that in some
region, HP is not well-known. According to Indonesian study case
most of people don’t know that HP is also desktop and laptop
brand. They know it just as digital camera brand. When we
observed in some region, most of the customer laptop product is
Acer and another one is Axioo. About the desktop some use L.G
and Acer. There’s also issue that HP with Compaq brand named
Compaq Notebook give disappointed reliability to its customers. So,
they keep refusing HP brand, and better choose Acer.
Opportunity
Today, technology is ubiquitous in our lives. It is embedded
into our everyday tasks, from balancing our bank account online to
sharing photos. Information has exploded—news sites, blogs and
social media sites are readily available as educational resources.
Yet many teachers lack the training to effectively integrate
technology into the classroom, leaving students unprepared to
compete in today’s global economy. There is the opportunity; HP
can take a chance to give the best IT service through its product. In
the future, almost company need IT skill to develop their business.
So from here HP can help to prepare company and human to face
the changing. Support IT service is the way to take this opportunity.
Create collaboration as one of HP shared value.
Threath
Many company in IT service industry, which produce PC and
sytem, know that they need collaborate with company, which need
their service. Let’s begin from university, then school, small and big
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business. Most of them now is supported by one of IT Company.
For example an university which is supported by HP. HP will
provide desktop, laptop, projector, printer, and servers if needed.
They also can open consulting grup for the university to promote
their product with discount. It’s more efficient, but HP should
compete with IT Company, which do the same way too. This we
called collaboration.
PEST Analysis
Political
Government policies support IT development in our country.
We need all smart people who understand technology in
government. Because they decide what this country would to be
and increase our growth through IT. Indonesia politically has been
appropriated with IT development. With this situation, IT could grow
without being destructing the politically itself.
Economic
IT give many impact of economic aspect. It’s not worth to say
that economic development depend on how IT is developed too.
With IT we can do most of thing more efficient with sort of time,
cost, and effort. Think positive about IT which give us more profit
and also big investment in the future. When economic growths with
IT, government get taxes from their business and enable to develop
the nation into the affected one. With technology we are one step in
the front line, so don’t left behind.
Like all companies, many aspects of HP’s day-to-day
business affect their stakeholders financially. We have a direct
impact through their financial transactions with various groups, such
as:
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November 20, 2010
o Suppliers through our purchase of goods and services
o Employees through wages paid
o Customers through sales
o Governments through tax payments
o Communities through social investment
o Investors through dividends and our financial performance
HP transactions with stakeholders can also indirectly affect
individuals and businesses, as well as local and wider economies.
As the money they spend circulates through the economy, their
activities continue to have an impact. In addition, HP products and
services increase productivity, potentially boosting companies’
profitability and strengthening the wider economy.
HP’s economic impacts
Group Direct economic
impacts
Indirect economic
impacts
Suppliers HP spends money on
products, materials,
components and
services from
suppliers around the
world.
Our spending creates
jobs in supplier
companies. Suppliers
and their workers pay
taxes and support
their local economies.
Suppliers may also
pay dividends to their
investors.
Employees Compensation and
benefits are a
significant proportion
of HP’s expenses. We
Employees pay taxes
and generate further
economic activity by
spending the money
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November 20, 2010
invest in training and
development, which
expands employees’
opportunities.
they earn.
Customers HP’s net revenue was
$114.6 billion in fiscal
year 2009.
Offering reliable,
high-quality products
benefits our
customers. Our
products and services
also improve
productivity, which
may increase
customers’
contribution to society
through business
expansion and
increased taxes paid.
Local, state
and national
governments
Local, state and
national governments
benefit from taxes paid
by HP and our
employees.
Taxes paid enable
government spending
and programs.
Local,
regional and
national
communities
Social investment
($52.2 million in 2009),
support for
nongovernmental
organizations and
employee giving all
benefit communities.
These activities in
turn support further
economic activity by,
for example,
improving education
and therefore
employment
opportunities.
Investors Shareholders receive
dividends, and the
Investors may pay
taxes on dividends
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November 20, 2010
value of their shares
may grow. (See the
link to chart in
Performance.)
and on stock gains.
The information technology (IT) sector provides more people
greater access to more—and better—information than ever before,
wherever, however and whenever they need it. This is creating
important new ways of providing services for a sustainable society,
and has wide-ranging benefits for all. For example: IT enables
people to work from different locations and join meetings by video
or conference calls. This can reduce the cost and environmental
impacts of travel and help employees balance their work and
personal lives.
Social cultural
IT come to our society in this future, and you can’t avoid it.
Who doesn’t want to know about IT will left behind. IT make our
lifestyle is changing. Our global could become local, because of IT.
We can do almost everything more efficient with IT, for example
you can print using ink less with print jet than standard printer and
it’s faster. Another example when you want send a letter you can
use e-mail with everything you want attach in it. So, it means that
we don’t need physically stuff anymore. Transfer become faster,
and paper less. This the way to make our environment become
more green, although IT industry responsible for 2% of the world’s
greenhouse gas (GHG) emissions, our products and services also
have the potential to help significantly reduce the other 98 percent
of emissions. It means that HP try to make their product with less
consume of energy and make the environment become better. The
sample of this action in the guide book which will you get after
purchasing a PC. It’s said that the guide book printed on recycled
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November 20, 2010
paper. It give a meaning that they care about our environment.
Another impact in social cultural is changing the way of society
thinking. With IT they will do all things more efficient, more creative
and their mind is opened to the global world. It take more
information and more optional of decision. This will not make you
confuse, think about positif effect that you will force to become
more intelligent.
Technologies
In the development country we try to adopt most
technologies in advance country. Let’s say HP come from America,
then Acer come from China. Thoshiba come from Japan, Dell come
from America too. We have just learn how we need technologies as
learning country. We implement technology in our business, school,
daily transaction, and health care. So, in the development county IT
like an invesment to prepare them into advanced country. When we
think about positive effect we believe this is a chance to build our
country, but when we think about negative effect, we are like their
laboratory, which enable them to make some experiment. We
become more consumptive, and it’s not in the line with our
economic capability. We don’t have choice to refuse technology
because we need it.
Some more examples are about copyright in Indonesia. I
believe most of our windows is not original, because it’s the same
function with the same performance with copied. We have never
think about this is important to appreciate a software with money.
No, we haven’t stepped on this level. So, it’s clear that our
economic capability is too low to accept those technologies. We
don’t have money to buy a software or it’s too expensive and the
feedback between buying software and investment are not clear.
But, it’s different when we see in advanced country, they
dare to buy technology for investment because they compete in IT
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November 20, 2010
level. They try to make their business more efficient with IT support.
HP in America play in this level, but HP Indonesia still try to sell
product as much as possible to introduce technology in Indonesia.
We like the Columbus who try to observe American Continent for
the first he met it.
HP Product Analysis
Review Summary
HP Pavilion dm4
Design 8 The good: Upscale design; powerful PC; large
touchpad; excellent battery life
Features 7 The bad: There are better midsize multimedia
deals out there; app dock is loaded with
advertising pitches
Performance 7 The bottom line: HP’s latest multimedia
system, the Pavilion dm4, is a powerful, slick
looking package, but some competitors in the
same price range offer more features less
Battery Life 9
Service and
Support
7
User Rating 7
4P Analysis
o Product
HP Pavilion dm4
Processor 2.4GHz Intel Core i5 M520
Memory 4GB 800MHz DDR2
Hard drive 320GB 7,200rpm
Chipset Intel HM55
Graphics Intel Media Accelerator HD
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November 20, 2010
(integrated)
Operating System Windows 7 Home Premium
(64-bit)
Dimensions (WD) 13.4 x 9.0 inches
Height 1.0-1.3 inches
Screen Size (diagonal) 14.0 inches
System weight / Weight with
AC adapter
4.3/5. Pounds
Category Midsize
The middle-of-the-road multimedia laptops that come out
of HP have always been excellent examples of the style. They
typically bring some upscale design buzz, but not too much in
the way of extra features or components--while keeping prices
down.
The processor options range from Intel's Core i5 to Core
i7, and we had the middle-of-the-road 2.4GHz Intel Core i5
M520 in our review unit. That should be more than enough
power for all but the most demanding users, and we were able
to surf Web sites, play media files, and edit photos in
Photoshop simultaneously with no stuttering or slowdown.
Like Dell, Asus, and other PC makers, HP includes a
software dock along the top edge of the screen, presenting
handy links to software and services in one place. The dock is
user customizable, but its default settings are heavy on
advertising come-ons from Snapfish, Norton, the HP Download
Store, and others. Rhapsody link, yes; Web browser link, no.
o Price
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November 20, 2010
HP Pavilion dm4 is a multimedia laptop with price $979 or
over Rp 10.000.000,00. It’s quite expensive with its specification
and targeted to mid category. HP Pavilion could be comparing
with Toshiba Protégé R705-P25 priced $799 and Sony VAIO
EA24FM/W priced $899. But HP Pavilion use Intel core i5
processor with good multitasking and multimedia experience. It
can be more expensive because the benefit is clear. That
should be more than enough power for all but the most
demanding users, and we were able to surf Web sites, play
media files, and edit photos in Photoshop simultaneously with
no stuttering or slowdown.
o Place
Even though HP have great distribution line, but for this
product have specific market. This product could be ordered
through internet or HP Service Center in your region, but with
different price according to how much tax paid. This is actually
mid category laptop with specific user and will not available in
general PC market, but you can see this product through
internet or exhibition.
o Promotion
Especially for multimedia product, and for this laptop,
used to be promoted in community through university and in
exhibition. The value of this product could be raised after being
promoted through such kind of event. The customer will impress
and decide to buy it.
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CHAPTER IV
CONCLUSION & RECOMMENDATION
Conclusion
Hewlett-Packard (HP) is a global provider of personal systems,
imaging and printing products, and technology solutions. The company
offers a wide range of products and services including PCs and related
access devices, imaging and printing-related products and services,
enterprise information technology (IT) infrastructure, and technology
services. The company is the largest player in the inkjet printer and laser
printer market. HP is one of the major companies in the enterprise storage
and servers markets. The company is also the market leader in the global
PC market. It primarily operates in the US and other parts of the world. It is
headquartered in Palo Alto, California.
HP can supply the market demanding in PC desktop and PC
portable with balance production. Compare with Acer, which 80% of its
product is PC Portable. The impact is Acer could not supply the
demanding. The key of HP successes is how to serve wide market and
give care to its customer by after sales service. HP is also active in global
society event. In top green for the company HP get the second position,
while the first number is Dell. It’s important as a big company, which
responsible to gas emission in the world.
Recommendation
Following with HP successes, there’s a problem with HP brand
image in Indonesia. We can observe that almost consumer use Acer in
desktop and laptop. It’s caused by HP is not too familiar in some region.
So, HP should rebuild their brand image as a PC brand and not only a
digital camera brand.
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BIBLIOGRAPHY
www.hp.com
www.wikipedia.com
www.news.cnet.com
Manajemen Strategik; Agustinus Sri Wahyudi; Binarupa Aksara; Jakarta
Barat; 2010