Hp Strategy

However, the long-term prospects appear very bright. Hewlett-Packard’s current operation in Vietnam is limited to the distribution of a small range of its products through local intermediaries. John needed to recommend whether HPAP should enter the Vietnam market in a more strategic fashion. If so, what form of market entry should be adopted, and what detailed implementation plans should be developed? Direct Presence

To enter Vietnam market, HP could have a direct presence in Vietnam by setting up a subsidiary or representative to provide marketing, sales support, and management services. Regarding to the Vietnam government, they planned for “IT-2000 Program” to create a national data communications network for almost all government personnel and the financial sector. The government hopes follow in Singapore’s footsteps and accelerate the country’s entry into high technology. Furthermore, they also provide each secondary school and university student.

Thus, HPAP may take this chance to bargain with government to subsidiary HP computers, such as personal computers, minicomputers, RISC workstations, and mainframes enter to Vietnam. Since government support HP, it had developed strong reputation and brand identities which will be the tops in Vietnam since the industry is still its infancy and don’t have any competitors in the market. Besides, the level of education was comparatively high and there are 70% of the citizen is under 35 years old. Therefore, most of them will need computers to do their stuff.

Direct Presence To enter Vietnam market, HP could have a direct presence in Vietnam by setting up a subsidiary or representative to provide marketing, sales support, and management services. Regarding to the Vietnam government, they planned for “IT-2000 Program” to create a national data communications network for almost all government personnel and the financial sector. The government hopes follow in Singapore’s footsteps and accelerate the country’s entry into high technology. Furthermore, they also provide each secondary school and university student.

Thus, HPAP may take this chance to bargain with government to subsidiary HP computers, such as personal computers, minicomputers, RISC workstations, and mainframes enter toVietnam. Since government support HP, it had developed strong reputation and brand identities which will be the tops in Vietnam since the industry is still its infancy and don’t have any competitors in the market. Besides, the level of education was comparatively high and there are 70% of the citizen is under 35 years old. Therefore, most of them will need computers to do their stuff.

How is HP dealing with a challenging economy? Leading tech companies (including Intel and Cisco) believe that given the constraints of the economy today and the likely global recession, customer spending on technology will decline rapidly impacting both consumer and corporate purchases. Declining sales figures in October and November (2008) reflected on this fact. Hewlett Packard (HP) on the other hand has delivered a contrastingly optimistic forecast and expects significant growth with respect to the negative outlook for the coming quarter.

How is it able to do so? A look at some components of HP’s business strategy: HP and its Business Strategy Wide Variety H. P. offers a wide variety of products to consumer and corporate customers which means that strength in some businesses can offset weakness in others. Repeat/Recurring Sales and Long-term deals HP’s stable revenues come from a large amount of recurring sales – about 40 percent (65 percent of its profits) from long-term deals. Declining sales of major printer and PC products

At HP, printers are often sold at a loss. Fewer printers sold imply higher HP profits. On the other hand, PC losses have a marginal effect on H. P. ’s overall profits. What the CEO and Analysts say? Mark Hurd, Chairman and CEO of HP remarked that HP’s ability to execute in a challenging marketplace helps it to differentiate against its competitors and therefore it is able to increase its market share and earnings. Other analysts opine that HP is a really well-run company perticularly from a cost perspective.

Cutting costs and layoffs The company was aggressively cutting costs and even began laying off workers (around twenty-five thousand) before the declining economy had its effect on the tech industry. HP is optimistic, but will it be able to match its 5 percent (approx. ) growth in recent quarters. Given the economic gloom, at least it has done well competitively and probably will emerge from the current economic environment as an even stronger force.

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