Company Profile Of Hewlett Packard - 1434 Words

1 Company profile Hewlett Packard (HP) is an American company founded in 1939 by Bill Hewlett and Dave Packard. It is one of the world’s largest IT Company and it operates in more than 170 countries. It provides a large range of hardware components as well as software and related services to individuals, small-to medium sized businesses and large companies. HP’s product line includes personal computing devices, enterprise servers, related storage devices and a diverse range of printers and imaging products. HP’s service portfolio includes technology service, consulting service, support service and enterprise service. HP markets its products to its customers directly as well as via online distribution. 2 Porter’s competitive forces model†¦show more content†¦Hence, there is a high barrier to entry into the technology industry. 2.3 Substitute products The PC and printers are one of the highly used items by consumers. However, PC sales have been declining due to consumers using their mobile phones or tablets. It will continue to decline unless HP develops a sustainable solution to produce successful mobile phones or tablets. 2.4 Bargaining power of customers Customers have moderate bargaining power mainly because there are many buyers and not one particular buyer is dominant enough to directly influence HP’s profit margin. Another reason why is because, customers knows that if they demand more customization and features for the product, HP or its competitors will be able to meet their demand in order to increase their profit. 2.5 Supplier HP’s suppliers have a high level of bargaining power mainly because of the type of industry it is in. HP is in the electronics industry. A PC or a printer is made up different components, some of which are sold by large reliable suppliers while some are sold by specified manufacturers. HP has over 50 suppliers for its manufacturing. This is good for HP as it has greater control over suppliers in terms of price, quality and delivery schedules. 3 HP’s objectives and goals HP’s main objective is to have customer loyalty, achieve sufficient profit,