Answer to Question #264928 in Marketing for Pein

Question

CASE STUDY: HEWLETT PACKARD

* Background of the study (Relevant Facts)

a. Set the scene: background information, relevant case facts and most important issues in the case.

Answer 1

Background of the study

Hewlett-Packard is an international company incorporated in the United States of America dealing with information and technology. It is one of the world’s largest technology companies whose headquarters are at Palo Alto, California.

It is involved in the development of hardware, software, computing, printing, and digital imaging. It is ranked as the second world’s largest company in sales volume od desktops, services, peripherals and servers. Aside from the personal and corporate computer devises, it also makes other computer preferential devises like the printers (HP Official website, 2011).

The company was incorporated by two friends in 1947, Bill Hewlett and Dave Packard, graduates in electrical engineering from Stanford University. The company was registered as a public company and since its incorporation, it has been doing well and recording high profits and technological development.

Despite global financial crisis of 2007, it was able to make a profit of $115 billion in 2009 where the largest amount came from sale of hardware. This was estimated to be 100milion increase compared with 2007. In 2008, the company was ranked as number one producer and seller of inkjet, laser, large format and multi-function printers, and hardware’s.

Major changes have taken place of late including the 1999 spin-off of part of its business as Agilent Technologies. In 2008, EDS was taken over by Compaq. In the following year, the company was ranked nine by Fortune 500.

In November 2009, they also acquired 3Com and the next target was Palm Company which was completed in April/May, 2010 at $1.2. The acquisitions where part of strengthening the companies operating base and improvement of services.

Of the sales records 85% is from sale of computers and about 50% takes place out of USA. Some of the main competitors of the company are Lexmark International, Inc. apple Computer, Inc., International Business Machines Corporation, Dell Inc., and Toshiba Corporation (HP Official website, 2011).

Major issues in the case

Despite the company being successful in the market, it has faced a lot of challenges ranging from competition from rivals and the ability to expand. HP has been plagued by board dysfunction for much of the last decade, marked by questionable decisions made by the leaders, the company has now hired it’s third CEO within a two- year period. This even led to its split in to two.