APA Style Report

The Hewlett-Packard Company

Bakirov Abzal

20.811: Smart technologies, University of International Business

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Introduction:
Hewlett-Packard (HP) is a company founded in 1939 that provides hardware and
software to businesses and individuals. The company is headquartered in Palo Alto, California.
One of the largest American companies in the field of information technology. The brand's
products are incredibly in demand. In this case, the name of the company is associated with
computer, office equipment, although during its existence Hewlett-Packard (HP) was related to
the manufacture of a large number of different electronic products. Computers, printers and
world fame came to them much later but in the beginning the students of Stanford University -
ordinary guys, electronic engineers Bill Hewlett and Dave Packard worked on their inventions in
a rented garage. The first projects were one-off devices: motor controllers, signaling devices,
other small electronics.
On November 1, 2015, it split into two companies: HP Inc. and Hewlett Packard
Enterprise.
HP Inc. - a U.S. IT company formed in 2015 with Hewlett Packard Enterprise as a result
of the Hewlett-Packard split, inherited the production of personal computers and printers. It is
the successor to Hewlett-Packard because it retains the original NYSE ticker HPQ and the
official website at hp.com, the domain in effect before the split. The number of employees at the
time of the split was about 50,000. The CEO is Dion Weisler. The company has production
facilities in the U.S., Singapore, Malaysia, Israel and other countries.

History:
1939 - founded as a manufacturer of measuring equipment by William Hewlett and David
Packard. The initial capital was only $538, and the company's first office was an ordinary garage
in Palo Alto, California.
1966 - the company released the world's first (according to Wired magazine) mini-computer, the
HP 2116A.
1968 - the company created the world's first desktop scientific programmable calculator, the HP
9100A.
1972 - the company released the world's first scientific pocket calculator, the HP-35.
1974 - the company released the world's first programmable microcalculator, the HP-65, which
used 4 Kbytes of dynamic RAM instead of magnetic memory.
1975 - the company developed an interface HP-IB (interface bus), adopted as an international
standard for connecting peripherals to the computer.
1977 - the company introduced the HP-01, a combination of a digital wristwatch, calculator and
personal calendar.
1984 - the low-cost personal inkjet printer ThinkJet and the most successful laser printer HP
LaserJet were released.
1988 - the first mass produced DeskJet inkjet printer.
1986 - the domain hp.com was registered, which is one of the very first domain names on the
Internet.
1986 - the company introduced the concept of RISC processor architectures.

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1993 - the "superportable" battery-operated personal computer, the HP OmniBook 300, was
released.
1994 - the company created the world's brightest LED.
1997 - the company received the Emmy award for its contribution in the MPEG video
compression technology.

HP Mission and Vision Statement:

HP's mission is to offer technologies and services that enhance business performance,
contribute to the well-being of society and improve customers' quality of life. HP does not
simply manufacture hardware. The company produces only those products to which it has made
its own contribution. HP does not engage in imitation - only unique developments.
Since its founding, Hewlett-Packard has been guided not only by business goals, but also
by a strong focus on corporate responsibility to society, customers and partners, employees, and
the nations in which the company operates. The company's primary goals are customer loyalty,
revenue, market leadership and growth.
Target management has been a fundamental part of Hewlett-Packard's philosophy of
action since its earliest days. Purposeful management -- assumes a system in which the goals are
clearly stated and agreed upon, and people are allowed the flexibility to work to achieve the
goals in the ways they themselves find best within their area of responsibility. This is the
philosophy of decentralized management and the primary basis of free enterprise.

Brand strategy:
When it comes to current market trends, Meg Whitman noted three of them.
Firstly, innovation is still one of the main factors of market development.
Secondly, now is the time when it is necessary to move from extensive to intensive
development, i.e. from commissioning new facilities it is necessary to move to the strategy of
increasing the efficiency of work, to the growth of quality, not quantity.
Thirdly, the main issue is how effectively IT infrastructure enables the enterprise to solve
the tasks it faces rather than what it consists of and how it is organized. This is the uniqueness of
HP position on the market: the company has a wide range of equipment and solutions which
allow the company to solve the most different tasks of the clients.
The list of HP's main strategic priorities today is as follows: 1) Big Data, 2) Development
of interoperability for network and mobile solutions, 3) Ease of use with IT infrastructure, 4)
Security.

SWOT Analysis:
Strengths Weaknesses
Strong Brand Value Highly Expensive
Global Availability Not Available in Less Popular Stores
Free Cash Flow (Research and Development) Poor Product Demand Forecasting
Excellence in Production High Attrition in Workforce
Skilled Workers Limited to the Core Business
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 Opportunities Threats
Product Innovation Newer Technologies
Investment on Employees Intense competition
Environmental Policy Fast-Changing Consumer Behavior
Stable Free Cash Flow Product Challenge
Online Channel

Main competitor:
HP currently holds the largest market in the entire industry followed by Lenovo, Dell,
Apple and Acer. In 2017, it held a market share of 21% followed by Lenovo at 20.8%. The level
of competition in the Personal computing industry has grown high resulting in higher spending
by brands including HP over research and development as well as marketing. HP has a large and
diverse product portfolio. The brand has continued to grow its product range and apart from
products made for the lower end market, it caters to the upper end market through premium
laptops and other products. Its strategic focus has remained on research and innovation for faster
market growth. In 2017, except a slight fall in gross margin, the brand saw a major rise in net
revenue of close to 7.9% compared to that in 2016.

Marketing strategies:
Targeting is one of the important pillars of the marketing strategy. HP uses differentiating
targeting strategies to provide customized products & services to the enterprises.
Product Strategy- HP's strategy is to focus around solving problems, from consumers to
enterprises. Through their products they help customer's complete tasks, and they make their
lives easier.
Pricing Strategy- HP's goal is to provide costumer's with high end merchandise at a
reasonable price. They have a variety of products at different prices to benefit their customer's
needs.
Promotion Strategy- HP uses their website and commercials to communicate with their
customers in order to let them know about the products that they have including special offers
which they have often.
Distribution (Place) Strategy- Hewlett-Packard sells their products just about anywhere
where electronics are sold like BestBuy, Walmart, Staples etc. Aside from selling their products
through different stores, they allow their customers to purchase their products on their website
and their products are shipped throughout the United States as well as various countries.
HP uses a mix of value/ product and pricing-based positioning strategies to compete in
the market: BCG Matrix, distribution strategy, brand equity.

Finances:
In fiscal 2020, HP Inc. revenue fell to $56.64 billion from $58.76 billion a year earlier.
The decline was due to a collapse in demand for desktops and printing equipment at companies.
For fiscal 2020, sales in HP Inc.'s computer division were nearly $39 billion, up 1 percent
from a year ago. Laptop shipments rose 12% to $25.77 billion in monetary terms, helped by the
COVID-19 coronavirus pandemic, which forced many people to work and study from home. The

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remote format of work and education has led to a surge in sales of laptops, which can not be said
about the desktops: the annual revenue of the American company in this segment dropped by
19% to $ 9.81 billion. 24% down on sales of workstations, to $ 1.82 billion.

Target audience:
HP has to choose a target audience which are the people you are mainly going to sell your
products. The target audience for the HP’s PSG industry are the people in the business industry.
In order to attract they need to have a customer driven marketing strategy. This strategy is made
up of 5 marketing concepts. They are social marketing concept, marketing concept, selling
concept, product concept, and production concept. For social marketing concept, companies
should consider the society’s long run interests also considering customers wants and needs.

References:
1. David Packard (1995). The HP Way: How Bill Hewlett and I Built Our Company
2. Michael S. Malone (2007). Bill & Dave: How Hewlett and Packard Built the World's
Greatest Company
3. Robert A. Burgelman, Webb McKinney (2006). Becoming Hewlett Packard: Why
Strategic Leadership Matters
4. Hewlett Packard (1994) Hewlett Packard Hp 12c Owners Handbook (Owners Handbook
and Problem-Solving Guide)
5. David Fetterman (2012). Empowerment Evaluation in the Digital Villages: Hewlett-
Packard’s $15 Million Race Toward Social Justice
6. Les Bailey, Mary Lou Bailey (2015). How It All Began...Again!: The First Forty Years
of Hewlett-Packard in Colorado Springs
7. Ton Viet Ta (2020). Price-Forecasting Models for Hewlett Packard Enterprise HPE
Stock.