Hewlett-Packard Company Limited (HP)


Hewlett-Packard Company Limited (HP) is an Information Technology company founded in California in the US. HP was formed by David Packard and William Redington Hewlett in 1939; therefore, the name HP came from the abbreviations of the two founders Hewlett and Packard. The Company operates worldwide, and it is well-known for dealing with IT products such as Laptops, printers, cloud services, servers, computers, and phones. The Company has increased over the years following the production and innovation of technological gadgets recognized globally. Meg Whitman is the CEO of HP company (Burgelman, McKinney & Meza, 2017). The diversity of information technology devices and products has resulted in huge sales for the Company, translating to its fast growth. People vary in tastes and preferences when it comes to products, therefore HP ability to produce a variety of products gives the customers a room to choose the products they want. The Company is in the IT industry has to remain competitive to enhance its stability and sustainability. HP’s strategic analysis will focus on how the Company is working to ensure they are competitive relevant as a determinant for the Company’s success.

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The IT Industry and Characteristics

HP, like Company, is in the industry of information technology (IT), which deals with products that are used for storage and dissemination of information and designing systems that deal with the flow of communication(Burgelman, McKinney & Meza, 2017). These products are computer devices, hardware, and software and communication gadgets like phones. The use of informational, technological tools promotes efficiency and integrity in service delivery. High economies of scale and dynamic changes in technology are the characteristics of the IT industry. Informational, technological tools have created value addition due to efficiency in operations. Also, the IT industry needs for skilled labor contributes to economic growth in growth in the sector. Also, the industry determines the growth of other sectors in an economy as they depend on systems for operations.

                                                          Porter’s 5 Forces              

Michael E Porter came up with Porter’s five forces of competitive position analysis in 1979, which was used for determining the competitive threat and position in an organization. The framework enabled an organization to come up with techniques for enhancing competitive advantage. Also, it was used to carry out the viability of new products and services in the prevailing market(Mckeown, 2013). By understanding the areas of strength, the Company can use the theory to improve its shortcomings and eliminate errors. The framework consists of five forces which are as follows;

Supplier power determines the effect of suppliers in the industry. The assessment carried out should identify the relationship between the supplier and the prices of products, which is based on the number of suppliers, the products each supplier has, the quantity of supply, and variations in cost among suppliers.

Buyer powerthis factor determines the influence the buyer has on price reduction of products and services. It is determined by the importance of a single buyer to a company and cost variations to the buyer for different suppliers. In most cases, companies that have few but loyal buyers can determine their preferences to retain them.

Competitive rivalrythe primary determinant is the number of similar companies offering similar products and services. This means that companies have to remain competitive relevant to withstand competition.

Threats of substitution with similar products in the market buyers tend to go for alternatives in case the prices of the products go up. Companies should consider the costs of other substitution products before coming up with prices.

The threat of new entryincrease in the number of new companies in the market increases the level of competition. Therefore, existing companies should come up with restrictive barriers to new entrants in the market to safeguard their profitability index.

Competition magnitude in the IT industry is determined by the level of competition among the existing IT companies, the threat of new firms’ entry into the market, and the possibility of customer buying substitute products and services (Mckeown, 2013). These three determinants lead to a reduction in the profitability of the Company. Therefore, a company must employ suitable drivers that increase its competitive advantage among its competitors.

Relevant Factors that lead to Success in IT Industry

The factors that bring about success in the IT industry are; first, innovative products and services. The IT products such as phones and computers continually change within short time frames depending on the trends in the market. Secondly, the marketing strategy for the IT products are appealing and targets almost all people globally, and this increases sales for the products and results in profitability (Mckeown, 2013). Lastly, the IT companies are comprised of a skilled workforce; this enables the Company only to produce goods and services that are of high quality as the team comes up with creative and innovative ideas. The IT industry is an attractive area of investment since technology is rapidly changing, and the market is receptive to these changes positively. The limiting factor of production is the ability of a company to cope up with the ever-changing trends in the market. Innovation and creativity is a critical determinant for success in the industry.

HP, like other global companies, has come up with several marketing strategies. Different countries have different approaches because the taste and preferences of the individual vary from one state to another. Technology levels are different among countries and therefore some of the products that are useful in one country are not recognized in another country. HP has a unique mix of a marketing concept that is outstanding in the IT industry, and the ideas include; distribution strategy, product mix strategy, suitable market, competition, communication, and pricing strategy(Burgelman, McKinney & Meza, 2017). The HP key resources are its skilled workforce consisting of engineers. These engineers continuously attend training that enables them to have a continuous flow of innovations. Also, as part of its resources is the HP group of labs that preserves that safeguards the HP products, and finally, HP has a highly effective support team. HP’s key capabilities are its ability to remain competitive in the market through innovations. The HP lab researches the IT industry all over the world to ensure that HP designs products and technological devices in response to the trends in the market. The HP competencies are unique marketing strategies, reply to customer’s specifications, competitive advantage, and practical ability to design new products.

HP strategy uses the marketing mix as a way of bridging capability the gaps.  The Company always employs a technology that enables it to reduce the prices of its products based on the reduced cost of production. Marketing mix targets all the countries globally therefore HP products are recognized worldwide. Also, the Company has engineers globally, who oversees the smooth running and operation of HP products (Zell, 2018). The environmental gap is bridged by the ability of the Company to distribute its products all over the world. Availability of many branches allover ensures that products are available in the market irrespective of the country. As an organization, HP has implemented a process called ‘Hoshin’ that aids in defining the strategic plan of the Company. The main strategic plan of the organization is always to be innovative with the changes in the market.

HP Company has portrayed diversity in production. The Company produces a wide range of products and services which show product diversification. Also, the Company does not only trade in the US, but it has outlets all over the world. The HP workforce has people from different backgrounds, countries, races, religions and even gender. Therefore the level of diversity in the organization is highly demonstrated. The HP international strategy mode is direct export whereby the Company produces all its products in the US and by use of agents; the products are distributed all over the world(Zell, 2018). This strategy ensures that HP is globally represented and that its products do not lack in the market. The global approach ensures that the Company is widely represented through the delivery of products that meets the customers’ specification.


In a nutshell, the IT industry is the right sector to invest in. However, changes in technology lead to the industry, always producing a product that meets the current trends. HP Company has invested in a workforce with skilled engineers who continuously design innovative products. Also, the success factor of HP Company lies in its marketing strategy that is intended differently for individual countries. The customer support team of HP works tirelessly to ensure their clients are satisfied with their services globally.


Burgelman, R. A., McKinney, W., & Meza, P. E. (2017). Becoming Hewlett Packard: why strategic leadership matters. Oxford University Press.

Mckeown, M. (2013). The strategy book epubebook: how to think and act strategically to deliver outstanding results. Pearson UK.

Zell, D. (2018). Changing by design: Organizational innovation at Hewlett-Packard.Cornell University Press.

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