Introduction
The Hewlett-Packard Company, commonly shortened to Hewlett-Packard (HP), is a leading information technology in California. The brand’s wide selection of products targets a large and varied audience. Essentially HP is an IT company that produces software and computer services and is an essential brand of computers and computer-related items. Additionally, this aids in weathering the storm of economic uncertainty (Zhang,2010). In addition, an extensive product catalogue is a critical factor in attracting and retaining customers, making it a valuable asset for any firm. HP is a market leader because of its large and loyal customer base. It attracts a global fan following that is both huge and devoted.
Organization strategy
Generally, the organizational strategy aims to achieve organizational success, and HP company is no exception. The IT company has succeeded in breaking into new markets and improving existing ones by developing cutting-edge approaches to IT infrastructure and applying the cutting-edge. The company growth strategy has been marked by critical characteristics of demand, market, and product range, such as business and market presence, that has grown and evolved significantly. Innovation has also been a key as it has been the reason behind this significant growth. In addition, the company’s forward-thinking approach has attracted several other prominent businesses. For instance, it was able to combine with Compaq because of its dominant position in the market. In addition, HP developed strategies for maximizing the value of IT expenditures – a critical step toward achieving organizational strategy (Zhang 2021: Zhang,2021). The concept was achieved by adopting an adaptable business strategy outlining the necessary tools, services, and procedures.
Technology marketing and production aspects have impacted HP’s supply chain early. For instance, Now that 5G is about to blow up in places like India, HP has to tailor its offerings to meet local and global markets and demand. Price, quality, speed to market, adaptability, and originality are the five pillars of competitive priority in HP Company. Many businesses spend years of trial and error trying to figure out how to prioritize their efforts to compete best; however, for HP, it is different. While the company is best known for its personal computer and tablet offerings, HP excels in the printing and imaging markets with various products and services, key indicators of increased production loll. The company’s dedication to product quality, customer service, and technical advancement has earned it a dedicated consumer base.HP, on the other hand, has a leg up on the competition when it comes to revenue generation because of its extensive product catalogue, robust research and development, powerful brand and procurement leverage, service and support capabilities, established distribution channels, and the capability to cross-sell its many product lines.
Figure 1:Aspects in organization strategy
Description of supply chain
As usual, supply chain management is notoriously challenging due to the number of variables and factors involved in HP Company. It includes purchase, manufacture, Inventory Management, Demand Planning, warehouse, transportation, and customer Service. The supply chain can be explained in the production cycle involved in product life, from raw materials sourcing to consumerism. Some businesses find it helpful to split the supply chain into “upstream” and “downstream” sections to facilitate easier company administration and running. This company explains the supply chain in two aspects: upstream and downstream.
A company’s suppliers are considered part of the upstream supply chain, along with all of the organizations from whom they get their raw materials. After a product is manufactured, it must go through a series of steps in the supply chain before it reaches the consumer. The demand side corresponds to the downstream supply chain, whereas the supply side is upstream(Saragih,2021). Managers in the supply chain attempt to strike a balance between the two in order to prevent over- or under-ordering, which might lead to lost revenues. Improper demand forecasting may save up to 25 per cent of operating expenses in the supply chain. Apple and Microsoft have built up over the years of their collaboration.
Hewlett-Packard’s current SCM approach has room for significant improvement, mainly owing to the company’s poor supplier selection and muddled prioritization. HP has developed a program that enables partner cooperation to combat the issue, although this solution also causes some slight disruptions in the business’ supply chain. On the other hand, HP’s supply chain is driven by business agility with new systems and innovations in infrastructure management. It would be inaccurate to say that HP’s rivals have devised a flawless strategy for handling SCM-related tasks supply chain is also driven by the need of the company to develop and improve quality standards, which has contributed to a multiplication in the company’s customer satisfaction rate. It is apparent that HP’s supply chain.
HP’s strategy in the supply chain involves establishing a better method towards procurement merits praise, even though the company cannot be considered the one that delivers its goods and recovers the necessary supplies from its suppliers on time. Hewlett-Packard’s leadership and management have consistently demonstrated an elaborate strategy that should allow the company to weather the storm of the global economy.
Supply chain planning and management
Planning and management techniques are what demand management is all about. It is used by businesses to anticipate customer needs and prepare for future supply and demand. Operations and marketing are better integrated when demand management and forecasting are used. Supply chain planning and management in HP Company incorporates critical aspects such as results, strategy, capacity, and customer demands that are better aligned. More than 170 nations have purchased printing products from HP, an indicator of effective supply chain management and planning. Since demand forecasts are the backbone of supply planning, accuracy in this area is crucial. There is a cost associated with both overestimating and underestimating future needs. HP Company don’t want a surplus of stock, but we also don’t want a shortage hence the need to monitor distribution channels used by the focal company. Hp company also worked on two additional projects in addition to this main one: keeping track of data quality concerns and developing comprehensive metrics during distribution. HP had to implement a just-in-time system, consolidate their facilities, and cut down on the number of supply chain nodes in order to solve its inventory issue(Zhang,2021). Using the BTCO model, customers can place direct orders with laptop manufacturers for fully customized machines. The model is an illustration production, inventory and data planning system.
Figure 2:supply chain planning and management
Furthermore, HP can reduce its channel inventory by only supplying retail outlets with a few existing systems for demonstration purposes. Customers may get a feel for laptops before they buy them by trying them out in-store. Afterwards, have your preferred configuration sent to you through HP’s retail website or in-store kiosks. According to a customer satisfaction survey, the HP company and its resellers have embraced a configure-to-order (CTO) initiative. Lastly, adopting new supply chain and management techniques has resulted in an increasingly competitive strategy in IT production.
Logistics
A logistic enhancement technique has been used to cut SC costs. Weigh the expenses of distribution against those of development and materials. Smaller and lighter products may be more easily sent by air, saving on storage fees and speeding up delivery times. A more durable item may ship with less padding and fewer damaged returns. The software development life cycle is supported by HP Quality Center (QC), a commercial test management product developed by HP. HP Application Life Cycle Management is a common name for this. HP Quality Center may also be purchased as a SaaS subscription.
Supply chain performance
Product availability, on-time delivery, and enough inventory and capacity in the supply chain are all aspects of Supply Chain Performance. Further, these aspects are defined as the actions of the extended supply chain toward satisfying the end customer’s needs (Ivanov & Dolgui, 2021). In support of the ideology, HP’s supply chain performance analysis encompasses raw materials, components, subassemblies, finished goods, and their distribution through various channels- supply Chain Performance transcends organizational boundaries. The analysis of the benefits and drawbacks of a variety of supply chain performance measures that were developed with the express purpose of supporting and monitoring Supply Chain Performance enhancements across the supply chain include the Ability of the company to t (i) control or lead the supply chain, (ii) interface directly with customers, and (iii) create the goods or services in question are focal company. As the market for HP’s products has matured, the company has shifted its focus from ROS to ROA on its assets. A lengthy supply chain compounded the problems caused by demand and supply mismatches, reducing profits. HP recognized that the expenses associated with traditional logistics (such as storage, stockpiling, and transportation) were only the tip of the proverbial iceberg. Inventory-driven expenses were much higher than expected because of price protection, material depreciation, returns, and obsolescence. HP could correct the problem and regain competitiveness when the total costs associated with the demand/supply mismatch were uncovered.
Risks
The HP supply chain is affected by various threats and weaknesses—for instance, the challenge of inadequate proficiency in purchasing. HP has bought at least 50 IT businesses in the past decade. Not all purchases benefitted the organization; some brought in fresh talent, while others boosted sales and income. In particular, the $11 billion loss on the purchase of Autonomy Corporation. HP overpaid for a firm and had to take an $8.8 billion hit. HP’s ineptitude throughout the purchase process is on full display now. No other HP rival has had an acquisition attempt fail in the last ten years. The personal systems segment accounts for 29% of total revenue. HP is still dependent on PC and laptop sales. After a few more years, the PC market is likely to grow very slowly. When combined with falling profits from computer hardware sales, HP’s main segment, Personal Systems, becomes a liability.
Weak tablet market presence, as well as competitive strategy, has impacted the company negatively. The tablet market has been expanding, and more expansion is anticipated in the double-digit percentage range over the following years. Almost all other IT companies have already entered the tablet industry with resounding success, seeing massive increases in revenue and profits (Boiko et al.,2019). Despite releasing the TouchPad tablet and later the Slate series of tablets, HP has yet to provide a product that is appealing to customers. This conclusion has been analyzed from competitor success levels ( Apple). Consequently, the company loses money and can’t keep up with Samsung and Apple in this lucrative sector. On the other hand, various strengths have helped the company grow regardless of the mentioned risks and weaknesses.
A significant presence in China has primarily resulted in the company’s growth. China’s GDP has been expanding annually to above 8%. HP is well positioned to gain from the increased expenditure of businesses due to the improving economy. The corporation has boosted its market spending and broadened its product and service portfolio, particularly in enterprise business and services. These businesses provide HP’s most lucrative offerings, including cloud computing services and business solutions. A well-planned entry into the Chinese market may significantly bolster the company’s future competitiveness.
The brand image has been embraced globally. More than 15% of the global PC market is held by HP, making it the industry leader. It is also a key supplier of products for use in service networks. The firm is evident in almost all markets in which it participates. This has contributed to the brand’s stellar reputation. In 2012, Interbrand estimated HP’s brand worth at $26 billion, placing it in the top 15 of the world’s most valuable brands. Multiple categories of products resulting in significant market share and customer satisfaction have also contributed to the company’s growth. PCs were formerly HP’s bread and butter, but the company has steadily shifted its focus to the more lucrative corporate solutions and services market. The number of goods and services the firm provides has increased to the thousands. HP is less vulnerable to changes in the various sectors and marketplaces because of its broad product portfolio, which is more extensive and more varied than its rivals.
In conclusion, HP’s product line-up is extensive and varied, reflecting a competitive organization strategy. The company has expanded its product line to include high-end laptops and other electronics aimed at consumers with more disposable income. As a result, the company has increased its market target and share. Research and development have always been the key to its business strategy. However, HP’s rivals have multiplied at an unparalleled pace as technology has progressed. Some, like Lenovo, surpass HP in sales and revenue because they provide similar devices at lower prices while boasting superior features. HP has invested significant financial resources, more than its rivals hence the supply-demand.
References
Boiko, A., Shendryk, V., & Boiko, O. (2019). Information systems for supply chain management: uncertainties, risks and cyber security. Procedia computer science, 149, 65-70.
Ivanov, D., & Dolgui, A. (2021). A digital supply chain twin for managing the disruption risks and resilience in the era of Industry 4.0. Production Planning & Control, 32(9), 775-788.
Saragih, J., Tarigan, A., Silalahi, E. F., Wardati, J., & Pratama, I. (2020). Supply chain operational capability and operational performance: Do the supply chain management and integration matter? Int. J Sup. Chain. Mgt Vol, 9(4), 1222-1229.
Zhang, A., Wang, J. X., Farooque, M., Wang, Y., & Choi, T. M. (2021). Multi-dimensional circular supply chain management: A comparative review of the state-of-the-art practices and research. Transportation Research Part E: Logistics and Transportation Review, p. 155, 102509.
Zhang, H. (2010). Research Hewlett Packard through its value chain. International journal of business and management, 5(8), 179.
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