Professional Documents
Culture Documents
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Presented by:
01 Hassan Sajjad 062116
02 Muhammad Faisal 063156
26 Muhammad Ali Qureshi 081126
33 Imran Ali 081502
36 Shahbaz Noshahi 081434
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Mission Statement
“”
Vision
“”
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Main Goals
“Selling and marketing its products
and services through programs
designed to improve profit margins.”
Situation Analysis
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Macro Environment Analysis
Demographic:
Economic:
HP and other brand name companies are reducing
the selling price of their ink cartridges.
Political:
Legal:
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Macro Environment Analysis
Informational:
HP provides information technology services.
Social:
Technologic:
HP has huge technology research laboratory
in Banglore.
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Porter’s Five Forces Model
Potential development of substitute products +
Bargaining Bargaining
power of
suppliers
(-) Rivalry among
competing firms
power of
consumers
N/A
_
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Strategic Orientation
Corporate Level:
GLOBAL EXPANSION
Business Level:
RELATED DIVERSIFICATION
Functional Level
DISTRIBUTION
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Segmentation
HP has various segments:
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Target Market
.INSTITUTIONS
.INDIVIDUALS
.BUSINESS CUSTOMER
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Marketing Mix
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Products
Important P’s
Price:
N/A
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Important P’s
Promotion:
o HP promotes directly to consumers,
businesses and through a variety of
business partners
o Direct sales campaign
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Important P’s
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Important P’s
People:
N/A
Process:
N/A
Physical Evidence:
Retailers, resellers, distribution partners, independent
distributors, etc
Life Cycles (PLC,CLC,ILC)
HP (CLC)
I T (ILC)
HP (PLC)
1 2 3 4
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Key Success Factors
There is potential in the industry.
As knowledge management evolves
from fad to business imperative,
many organizations are discovering
the limited ability of information
technology to capture and share
ideas, insights, and know-how.
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Unique Selling Preposition
N/A
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External Factor
Evaluation Matrix
Analysis
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External Factor Evaluation
Matrix
Factors Weight Rating Score
Opportunities
0.15 4 060
Imaging and printing businesses
Threats
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Internal Factor Evaluation
Matrix
Key Factors
STRENGTHS
Weight Rating Score
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SWOT Analysis
Strengths
Strong brand equity world’ largest it firm. Weaknesses
World’s biggest computer hardware and
Price is high in China
peripherals company in the world.
An advantage HP has over its competition as compared to other
it is a total solutions provider. Product line
Diversified product portfolio management problems
Solid market position in key segments.
Strong financial Position.
The company has a long history of
inventions and innovations until it came to
this stage
Product diversity of the company is
another big advantage that enables the
company to hold its position even in the
times of recession.
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SWOT Analysis
Opportunities Threats
Apple computers (Macs)
Emerging markets,
significant growth in
particularly BRIC countries
overall PC shipments
Imaging and printing
Dell direct-sale
businesses
marketing
e-Commerce expansion
Intense competition from
Diversification
other PC manufacturers
Related/Unrelated Slowdown in economic
conditions in US, Europe
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THE Space Matrix
. FS
+6
Aggressive
+1
CA IS
-1 +1
-6 -1 +6
-6
ES
BCG MATRIX
1.0 0.0
.50
+20 0.0
hp
-20
IE Matrix
IFE total Weighted Scores
3.02 3.22
3.0
4 5 6
scores
Wighted
EFE
Medium
2.0
7 8 9
Low
1.0
Grand Strategy Matrix
Q2 Q1
Weak Strong
Competitive Competitive
Position
Position
Q3 Q4
Opetunities:
0.08
Emerging markets, particularly 4 .36 3 .24
BRIC countries
0.07
Imaging and printing businesses 3 .24 2 .14
0.06
Diversification Related/Unrelated 3 .21 2 .12
E-Commerce expansion
.03
3 .09 3 .09
Threats:
0.05
Apple computers (Macs) significant 3 .15 3 .15
growth in overall PC shipments
0.05
Dell direct-sale marketing 3 .15 2 .1
Intense competition from other
PC manufacturers 32
Slowdown in economic 3 .12 2 .08
STRENGTHS
Strong brand equity world’ largest it firm. 0.09 3 .27 3 .27
World’s biggest computer hardware and peripherals company in 0.07 3 .27 2 .14
the world.
An advantage HP has over its competition it is a total solutions 0.06 3 .18 2 .12
provider.
Solid market position in key segments. 0.08 3 .24 2 .16
Strong financial Position 0.10 4 .40 3 .30
The company has a long history of inventions and innovations until 0.07 3 .21 2 .14
it came to this stage
Product diversity of the company is another big advantage that 0.05 3 .15 2 .10
enables the company to hold its position even in the times of
recession.
WEAKNESS 0.05 4 .20 4 .20
In Asia Other Competitor's prices are low
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Important Figures
Sales
The HP company sales are increasing
in 2006 as compare to 2004.
Growth rate
The company growth rate is 12.3%.
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Market Share
HP announced that it is the worldwide market
share leader in distributed system
management software for 2004.
HP led the worldwide distributed system
management software market category in
2004 with 13.3% revenue share. HP's revenue
grew 14.9% in this market for 2004, outpacing
the overall one-year growth of 8% for the
category and nearly doubling the revenue
growth of each of the next three closest
competitors.
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Competitor Analysis
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Competitors
Demand is tied to consumer and business income.
The profitability of individual computer companies
depends on purchasing and production efficiencies,
and on technological expertise.
HP competitors are primarily in the Personal
Computers industry. Hewlett-Packard also
competes in the Computer Networking Equipment,
Computer Peripherals, and Handheld Computers &
Accessories sectors.
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Comparison
Company Revenue Number ofGross EBIT EPS Net
Name employees margin income
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Financial Analysis
Ratio Analysis
Liquidity Ratios
Ratio 2005 2006 Result
Current ratio 1.37 1.34 moderate
Quick ratio 1.15 1.13 moderate
Leverage Ratios
Ratio 2005 2006 Result
Debt-to-total-assets 0.45 0.46 moderate
Debt-to-equity 0.93 1.0051 negative
Long term-debt-to-equity 0.091 0.065 positive
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Ratio Analysis
Activity Ratios
Ratio 2005 2006 Result
Inventory turnover 12.60 11.82 negative
Fixed asset 2.55 2.71 Positive
turnover
Total asset turnover 1.12 1.11 Moderate
Growth Ratios
Ratio 2005 2006 Result
Growth in sale 8.49% 5.72% Negative
Growth in net (31%) More than 100% positive
income
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Ratio Analysis
Profitability Ratios
Ratio 2005 2006 Result
Gross profit margin 23.61% 24.52% Positive
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Statement Analysis
Income Statement
Ratio 2004-05 2005-06 Result
Revenue 8.49% 5.72% negative
Cost of goods sold 9.30% 4.46% Positive
Gross profit 76% (0.78%) Negative
Operating Profit (17%) 88% Positive
Net income (31%) More than 100% Positive
Net income per (28.69%) More than 100% positive
share
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Statement Analysis
Balance Sheet (Debit
Side)
Ratio 2005-06 Result
Current assets 11.37% Positive
Plant & equipment 6.83% Positive
Total assets 6.03% positive
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Main Opportunity
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Sub Problems and
Opportunities
Need for diversification
High prices
Product line management problems
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Alternatives
Open a new manufacturing plant in
Asia Pacific
Start new imports to Asia Pacific
Start selling old brands with
decreased price in the Asia Pacific
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Alternative One:
Open a new manufacturing plant in
Asia Pacific
Pros Cons
• Cheap labor • Heavy investment
• Low other required in start
manufacturing costs
• Low transportation cost
• No import charges
• Opportunity for R&D
expenses, because of
low manufacturing cost
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Alternative Two:
Start new imports to Asia Pacific
Pros Cons
• Brands already • High transportation
familiar to people cost
• High import charges
• Customers are looking
for new technologies
and new features, not
exactly for older
brands
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Alternative Three:
Start selling old brands with
decreased price in the Asia Pacific
Pros Cons
• Directly target • No margin for R&D
Lenovo’s fast-growing due to low price of
low-priced products products
• Developing and/or • Refurbished products
poor areas of the would be unreliable,
region would be able and would have a
to afford information short life cycle, as
technology products customers want new
technologies and new
features
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Best Alternative
Open a new manufacturing plant in
Asia Pacific, as we find that this
alternative has maximum pros and
minimum cons. In addition, due to
the strong financial position of the
company, it would be able to afford
the high investment costs involved in
this alternative.
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Implementation
HP will set its target to capture Asia Pacific market by
moving along the following road map:
Start aggressive marketing in China and India by bringing
all products with minimum possible price.
Start building manufacturing plan parallel with new
marketing. Cost is approximated to be USD 500 Million.
Start exporting products from new production plant in
other Asian countries, which will help in reducing
exporting cost.
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Recommendations
HP is currently spending approximately 4% of
their net revenues on R & D. We suggest that
for related dive6rsification it should be
increased to 10%.
When marketing any product to Asia, price
should be very minimum or special offers
should be introduced to attach the customers.
Hp should introduce new product line
immediately for those lines which are suffering
or have become uncertain.
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The End
Thank you
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