HP Case Analysis

Essay by babycat824 January 2008

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Summarize1.0 Company profileNowadays, HP was the largest computer and printer industry in the world, and HP also was a leader in the printer supply business. HP has five general categories: Computer Products, Service & Support; Test & Measurement Products & Service; Medical Electronic Equipment & Service; Electronic Components; and Chemical Analysis & Service. (Re: D.Prescott, 2000)1.1 Case AnalysisHP was contemplating the increasing success of eCommerce. Last time HP had transformed to B2B Company, They make the transition successfully and also emerged stronger. Today challenge is move to sell new printers directly to consumers via this new e-Channel. But if make such a move, HP wondered which products to sell online at what prices, and how to communicate this strategy to channel partners without damaging the existing distribution structure.

1.2 Market environmentHP was a leader in the print industry. HP was contributed $5 billion to its total sales of $42.9

billion in 1997. When entered in the New Economic Age, in the marketing all hot new technology, printer prices eventually came down which resulted in lower dollar growth rates for printer manufacturers. And the emerging trend in printer usage. One such trend was the "distribute-then print" model for information flow within companies. These models enabled a document created in one location to be distributed electronically users in multiple locations, where it would be printed out individually. According above, we would be finding in the today's business environment, Technology is core of company, Customers needs high quality and high technology product.

1.3 HP Channel of DistributionHP sold printer to consumer through seven channel types:•Computer Product Superstores. It carried a broad and deep assortment of PCs, peripherals, and computer-related product.

•Consumer Electronic Superstores. It worked on commission, tended to encourage customers to buy more expensive products.

• Office Product Superstores. The sale...