hewlett packard paper

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1 HEWLETT-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

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Page 1: Hewlett Packard Paper

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.

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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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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

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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

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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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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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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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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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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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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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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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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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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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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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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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(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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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