Successful leaders understand that if their organization is to grow in the long term, they can't stick with a "business as usual" mindset, even when things are going well.
Building products to order, maximise manufacturing effeciencies by producing high volume of basic product configurations Configuring products to order — for customer customization JIT to minimise inventory Purchase supplies from multiple vendors Operations Utilizes its own manufacturing capacity as well as origional design manufacturers and contract manufacturers for cost efficiencies HP is the largest customer for most of their suppliers — best terms and prices Outbound Logistics HP uses external partners for its outbound logistical needs Marketing and Sales HP has a number various types of partners including retailers, VARs, distribution partners, OEMs, system intergrators and independent software vendors Services HP Services competes in IT support services, consulting, intergration and outsourcing services.
HP has successful lines of printers, scanners, digital cameras, calculators, PDAs, servers, workstation computers and computers for home and small business use.
HP not only supplies hardware and software but also a full range of services to design, implement and support IT infrastructure HP, The HP Way focuses on employee satisfaction as the source of company success.
Some of the by-products of the HP Way include flex time and open communication between managers and employees. The project resulted in hundreds of thousands of dollars in cost savings by automating package design creation.
In the company moved up from the 12th to the 11th most recognisable brand Interbrand. Key Strategic Issues 3.
The Compaq merger helped HP vault to no. Still HP was struggling with profitability at the same time IBM and other competitors were reaping strong profits. This merger meant a lot of people lost their jobs.
Always enterprise oriented, HP completely missed the uptake of smartphones by general public, allowing market leadership to be taken by a smaller player. There was a dilemma whether to continue with the smartphone market.
HP had already acquired the iPaq line of smartphones in when it bought Compaq Computer although there had been a decline in profits. Before the acquisition, HP had no legitimate play in the vital smartphone space, so this strategy is suitable.
It was an opportunity not to be missed. HP has all it takes in terms of finance, technology and skills, to make the acquisition profitable. This came at the right time as both companies were struggling and therefore needed a big fix. Product development is therefore a feasible strategy. Both companies were failing in the smartphone industry therefore there was no guarantee that when the two companies come together, there will be any improvement, especially since Palm chief executive was to stay on.
Product development also involves heavy investments which could be a risk in case the project fails. It would have worked well also for the smartphone industry. All that HP was going to do is attracting non-users of HP products and convincing current clients to use more of their products through promotions and advertising.
Market penetration is the least risky way for any company to grow, also, penetration pricing involves the setting of lower rather than higher prices in order to achieve a large, if not dominant market share so this makes it a feasible strategy.
It is however not such an acceptable option as there might be a likelihood of competing suppliers following suit by reducing their prices also, thus nullifying any advantage of reduced prices.
The other potential disadvantage is the impact of reduced price on the image of offering, particularly where buyers associate price with quality. Stakeholder power vs level of interest Adopted from Johnson et al.
Shareholders exercise their ultimate control over HP and how it is managed, for example, having a say on how the management is paid. By voting against these pay packages, the board approved the change Inquirer, March Managers are key players in the sense that for any company to succeed, it needs management that is driven and ambitious.
With all these habits, the company is bound to thrive for the best and stay at the top. Employees are equally important as they are integral to the success of the business. The talent, expertise and skills of employees drives everything from how HP innovates its products and manage its supply chain to how they connect with customers and collaborate with partners HP, Consumers may, for example, exert pressure on sales managers to represent their interests within the company, so in a way they can also be regarded as key.
This can be done in different ways: Involvement in strategic implementation: This is through exercising discretion. Shareholders have to vote for or against any acquisition meaning the power is in shareholders hands as they are the ones who ultimately decide if any acquisition is to succeed or not.
Control of strategic resources: Management is responsible for the allocation of resources to implement the policies and plans, projects and programs. For instance when HP acquired Compaq, there were job losses so its vital for management to take this into consideration. There has to be a balance between the longer term needs of the future and the short term imperatives of the present.When I use the Ansoff Matrix for market growth I find it rather dooming to categorise the growth strategy in to the four boxes.
I know the theory and its clear to me but, I think the main problem lies at recognising what the "Current Market" is. The Ansoff Matrix was developed by H.
Igor Ansoff and first published in the Harvard Business Review in , in an article titled "Strategies for Diversification." It has given generations of marketers and business leaders a quick and simple way to think about the risks of growth. Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy.
Ansoff’s product/ market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or. The TOWS Matrix is a relatively simple tool for generating strategic options. By using it, you can look intelligently at how you can best take advantage of the opportunities open to you, at the same time that you minimize the impact of weaknesses and protect yourself against threats.
ANSOFF MATRIX. Depending on the characteristic of each, the marketing strategy is decided. These marketing strategy are as follows.. 1) Market Penetration in Ansoff Matrix – In the Ansoff matrix, market penetration is adopted as a strategy when the firm has an existing product and needs a growth strategy for an existing market.
The best example of such a scenario is the telecom industry. ANSOFF MATRIX.
Depending on the characteristic of each, the marketing strategy is decided. These marketing strategy are as follows.. 1) Market Penetration in Ansoff Matrix – In the Ansoff matrix, market penetration is adopted as a strategy when the firm has an existing product and needs a growth strategy for an existing market.
The best example .