Business Competition Strategies
Discuss Hewlett Packard Company, evaluating the rival companies' business competition strategies.
Identify the type of business level strategy each firm is using and evaluate its effectiveness. Consider cost leadership, differentiation, focused cost leadership, as well as integrated cost leadership and differentiation.
Determine the role industry competitive dynamics have in choosing those strategies.
Reference your readings and at least two other sources, including MarketLine, the Internet, or other properly cited sources.
Hewlett Packard Competitors
Hewlett Packard is one of the biggest technology solution providers to businesses, consumers and institutions in the world. Its products range from personal computing and access devices, IT infrastructure, multi-vendor customer services, imaging and printing and global services. the company's revenue for the year ended 2010 was $126,033 million, a 10% increase from the previous year's earnings (Datamonitor: Hewlett Packard, 2011).
In all its business segments Hewlett Packard faces stiff competition from other rival firms. The direct competitors currently are IBM, Dell Inc., Accenture plc (Daily Finance, 2011). It though faces other competitors in several of its products and market segments. In ESS segment, the company faces stiff competition from companies such as IBM, EMC and NetApp. In IT and enterprise service provision, it competes with IBM, CSC, Accenture and Fujitsu. In its enterprise IT management software products, it competes with IBM, BMC, and CA. In personal computing devices, it competes with Dell, Acer, Apple, Lenovo and Toshiba where as in its imaging and printing products it faces competition from companies such as Xerox, canon, Samsung Electronics and Lexmark International. In its smartphones segment it faces stiff competition from Apple, Nokia, RIM and Google's Android (Datamonitor: Hewlett Packard, 2011). These competitors have adopted various business level strategies in their competitive strategies.
Business level Strategies
IBM one of the world's leader in the computing services and devices industry. In the past fifteen years the company has undergone transformation from being a predominantly hardware seller to provide a wide range of services. Among the various strategies that the company used are cost leadership strategies. More recently IBM has been focusing on the price sensitive and cost conscious customers, by producing their products at more reduced costs. It has especially focused its efforts in reducing the procurement costs incurred within its supply chain. A continued procurement strategy that has helped the company to transform it cost cutting strategies, has in the past year resulted into $ 6billioin in cost savings and has also delivered leading cutting edge technology into the market that is continuously becoming more affordable to low end consumers. this strategy has been made possible through on demand supplier relationships, innovative solutions to problems, and operational efficiency (Peterson, 2010).
Over the past two decades IBM has transformed from a product centric business model to a customer centric business model. They have done this through differentiating in to different IT products and services. The customer centric business strategy leverages IBM's strenghts in big servers market, systems integration and its huge storage capability. ...
The expert examines strategic business management and planning for Hewlett-Packard Co.