Introduction
Hewlett-Packard (HP) is one of the world’s leading technology companies. The company currently operates in over 170 countries globally and offers personal computing, printing, imaging and software services. In addition HP provides an IT infrastructure, cloud computing and connectivity. Described herein is an analysis of the company based on its generic strategies, corporate strategies, and international strategies. After the analysis, one of the company’s problems is identified and a solution proposed.
Generic Strategies
The five generic strategies are Overall Low-Cost Provider Strategy, Broad Differentiation Strategy, Focused Low-Cost Strategy, Focused Differentiation Strategy, and Best-Cost Provider Strategy. The low cost provider strategy aims at controlling the cost drivers and reconfiguring the value chain. Based on this, the company aims at providing its goods and services at the lowest cost in the industry. Buyer differentiation strategy puts into account the diverse buyer needs and the willingness of the buyers to pay for more exact products. This strategy necessitates the development of products and services that have unique attributes and highly valued by the customers. Best cost provider looks at the perception of value and the importance of competitors. It also takes into account the dangers between the low costs and differentiation. Focused-low cost strategy aims at narrowly defining the market based on the price, and the forecast differentiation strategy looks at the high end market and the buyers’ willingness to pay for the unique attributes. Focused strategy mainly concentrates on the narrow segment and attempts to attain the cost advantage.
