hp and lenovo (last group)

7/30/2019 hP and Lenovo (Last Group)

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2003 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without

HP and Lenovo

Puneet Mishra (PGSF1118)Nilanshu PandeyShilpi Rani


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Introduction

India has built up valuable brand equity over the years contribution to the GDP has increased by from 0.6% in 1994-95 to 4.3% in

2004-05

Revenue is expected to increase from Rs. 1276 billion in 2004-05 to Rs. 6435billion in 2010-11

ITES-BPO is emerging as the fastest growing segment

page 2HP SharePoint activities overview


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Services and Software vs. Hardware

Hardware counterpart is more robust then the services and software segment India is able to offer a 24x7 service

IT industry generated revenue of US $ 5.7 billion in 2004-05, representing agrowth of 46% over the previous year

90% of the revenue is generated through export

India does perform numerous hardware assembly tasks internally,

Almost entirely for the domestic market.


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Major Players in IT industry


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Indian IT-BPO Industry

Indian IT-BPO industry revenues cross the USD 100billion mark, exports at USD 69 billion

Increase its market share from 51 per cent in 2009,

to 58 per cent in 2011

Software and services revenues nearly 87 per cent

of the total industry revenues,

estimated growth of about 14.9 per cent over FY2011

The industry expected to add 230,000 jobs in FY2012


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Pest analysis of HP


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Political

Private ownership is the dominant market system in the India

The government plays a significant role to the countrys economy including thebusiness sector.

One of the important roles of the government in business is the developmentand enforcement of various business-related laws.


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Economical

Factors affecting IT industry ranging from rising working pay, global recession,competition

Currency fluctuations caused by the devaluation of the dollar has affected the

industry during the last global recession Indias global IT spending yet to decline due to entry of new IS companies


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Socio-Cultural

The population of the country is considered as the second most populated

country in the world. In addition to size, the Indian is said to be a masculinesociety.

The rise of immigrant workers suggests the growing working sector of thecountry, which increases the need for computers and technology.


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PEST Analysis of Lenovo


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Political

Government Stability Environmental Protection Laws

Special Incentives

Attitude Towards Foreign Companies


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Economical

GDP Trends Inflation Rate

Employment Generation

Pricing Strategy


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Socio-cultural

Changing Lifestyles Career Expectations

Consumer Activism

Growth Rate of Population


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Technological

Industry Spending on R & D

Cutting-edge Technologies

Transfer Rate of Technology

Patent Protection


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SWOT ANALYSIS of HP


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STRENGTHS

Innovation Size and scale:

Synergy among business units

Competitive Advantages in the Personal SystemsGroup

Services:

Enterprise Servers, Storage, and Networking

HP software

Product manufacturing

Brand name


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Weaknesses

Acquisitions

Some supply chain dependencies:


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Opportunities

The Imaging and Printing Group

Supply Chain Management


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Competitive analysis

Michael Porters Five Forces- Threat of New Entry, Buyer Power, SupplierPower, Threat of Substitutes, and Internal Competition

Hewlett-Packard simply because six separate business units

these business units have high profit margins, high growth rates, or both

The real focus should be on HPs Personal Systems Group (PSG) division,which presents the greatest challenge in its declining revenues and decreasing

margins HPs strategy should include all of its divisions


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Swot analysis of Lenovo


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Core competency of HP

Broad portfolio of products and services,

Innovation technology,

research and development capabilities


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Core competency

Broad portfolio of products andservices,

Innovation technology,

research and developmentcapabilities

Lenovos core competencies aredeveloping, manufacturing andmarketing desktop and notebook

personal computers, workstations,servers, storage drives

Lenovos business model is built oninnovation, operational efficiency, andcustomer satisfaction

LENOVO HP


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PORTERS Model of Lenovo

Threatof New Entrants

Wipro.

Samsung. Chirag.

Threat of Substitute Products

Verbal communication, Video recording. Handwritten, Telephone.

Communication , Conferencing machine,Typewriter. Camera, Windowsmobile.Sound Systems.

Suppliers

Intel(Micro-processor) Microsoft (OS)

Buyers

BigCorporates

GovernmentOffices Educational Institutes BPOs

IndividualCustomers

CompetitiveRivalries

HCL, Toshiba , HP, Zenith, Compaq, Sahara Dell, etc


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Porters Five Forces of HP

Threat of New Entrants Moderately high Asian competitors, especially China, using learning curve and local market expertise to move up

the value chain Few opportunities for product differentiation or absolute cost advantage Bargaining Power of Suppliers Extremely high with respect to Wintel! Wintel dominance enables them to extract enormous rents from PC value chain

Customers demand compatibility, enabling Wintel standard to remain entrenched Intensity of Rivalry Extremely high! Wintel standard removes opportunities for product differentiation Excess capacity leads to severe price competition Bargaining Power of Buyers Low switching costs

Role of distribution and inventory management and retail shelf space very important in certainsegments

Threat of Substitutes Currently low but growing PDAs/smartphones increasing functionality Proprietary/alternative platforms


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Recommendation

Improve the operatingefficiency of the PC

business, then spin itoff.

Dont abandon thehandheld market.

Focus the product lineon notebooks and

discontinue desktops. Change the company

name to ThinkPad.

Focus on battery life as

the company's keydifferentiator

LENOVO HP


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2003 Hewlett-Packard Development Company, L.P.

Thank You

hp and lenovo (last group)

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