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Supply Chain Study of a Fortune 500 Company

A brief history of the company

Established in 1939, Hewlett-Packard Company (HP) has grown to become one of the leading IT companies in the world. It began as an original silicon startup by Bill Hewlett with his university friend Dave Packard. An audio oscillator was its first product, and Walt Disney was their first customer. To motivate their staff, they began giving them bonuses as early as 1940, together with blanket health coverage. It was in 1966 that they officially entered the computer market with the production of HP 2116A, which was designed to control the company’s massive production line. 1966 was an important year for the company as it opened a leading electronic research center that transformed its operations. It produced the first handheld computer in 1882 with the introduction of the HP-75C. By the end of the 1980s, HP had successfully managed to create a diverse range of computing devices that included personal computers and large scientific machines.[1].

In the wake of the 21st century, HP merged with Compaq in 2001. 2007 was a milestone year as it became the leading IT Company among the Fortune 14 companies with 156,000 employees, $97 million in revenue, operating in more than 170 countries[2]. In 2008, it produced the DreamColor display that transformed the film industry by creating rich and accurate colours. In 2011, it produced its first tablet. Financial turbulence began in 2012 when HP posted a profit decline of 31 percent that led to 27,000 employees being laid off2. Xerox began its bid to acquire HP in 2019 but failed. In 2020, it introduced its app. It acquired HyperX, a computer gaming division, in 2021. In 2022, it acquired Choose Packaging to strengthen its sustainability efforts1.

Provide an overview of their operations and processes.

HP Company’s operations and processes are anchored on; its business strategy, customer insights, product development, and executive excellence3. HP Company employs a highly variable business strategy based on market shares, product offerings, pricing, marketing strategy, and competitors. The PC market makes up about 28.4 percent of its market share. It produces various products; accessories, monitors, desktops, convertible notebooks, tablets, mobile workstations, printers, and scanners. Its marketing mix has a diverse pricing model. It employs the 360 branding strategy to market its products and uses different media platforms to reach its customer base. It faces stiff competition from Microsoft, Samsung, Apple, Huawei, Toshiba, and Lenovo, among others.[3].

Customer insights have a significant role in HP’s operations and processes. Through the effective use of customer data, HP is gaining a competitive advantage over its rivals. It also uses data to drive programmes, investments, operations, and initiatives. It strives to produce the right products that suit the customers’ needs and preferences. It is working with Amplify Data Insights, a third-party market intelligence company, to evaluate its customers’ data while respecting their data privacy.[4]. HP’s operations and processes are driven by excellent product development. Since its inception, the company has continuously developed innovative products with state-of-the-art technologies that give its customers the edge they need to stay ahead of their rivals. HP has invested heavily in research and development, allowing it to produce a high-quality product designed and tested to meet strict industry standards4.

From the first CEO, Dave Packard, in 1964 to the current CEO, Enrique Lores, HP Company’s executive excellence can be credited for the success of the company’s operations and processes5. Its executive team has consistently demonstrated a commitment to leveraging innovation to capitalize on new opportunities, drive growth, and stay ahead of its competition. The company’s leadership has implemented strategies that prioritize open collaboration among its employees, with an emphasis on communication and mutual understanding. They also recognize the benefits of diversity and inclusion among employees.[5].

Supply Chain Strategy

To produce its products, HP significantly uses the outsourced manufacturer (OMs) supply chain strategy. This model decreased time to market while creating cost competencies for HP-designed goods. It ensures flexibility in manufacturing procedures and supply chain by employing multiple OMs. Occasionally, products are manufactured by third-party vendors and then bought and resold by HP. Therefore, vendors manage all aspects of replenishment, including forecasting, ordering and delivery schedule. This allows for a better understanding of customer demand patterns which improves on-time deliveries from suppliers. Additionally, HP manufactures a limited number of goods for its use. To satisfy its customers’ requests for products, HP also uses the agile approach. This is driven by the need to exploit logistic and industrial competencies. It consolidates orders to reduce lead times and transportation costs and improve service levels.

Sustainability and a code of conduct are integral parts of HP’s supply chain. It incorporates a comprehensive array of sustainability efforts anchored on; society, environment, and integrity. In its operations and processes, it uses 100 percent renewable electricity. Transparency and accountability is also vital component. Examples of its supply chain policies and standards include; Suppliers’ Code of conduct, Reuse and recycle, environmental specifications, standards, and the foreign migrant worker standard.[6].

How does the company’s strategy relate to its vision and company goals

HP’s vision and mission are anchored on these core values; growth, profit, leadership, market, commitment to employees, global citizenship, and leadership capabilities. Its vision is:

‘’To create technology that makes life better for everyone, everywhere.”[7]

The five pillars of its supply chain reflect this vision and its values. These pillars are; customer, operational excellence, world-class financials, competent employees, and future-proof through innovation. Financials are often the success criteria for most companies; however, for HP, it is the customers’ satisfaction. Thus, customers are at the core of its supply chain system. It ensures operational excellence through collaboration with stakeholders. While producing its products, it considers a sustainable cost frame. Employees are continuously empowered through extensive training programs. Finally, supply chain innovation is highly invested in by the company as all its operations are driven by innovation and technology.[8].


Hacklin, F., Björkdahl, J., & Wallin, M. W. (2018). Strategies for business model innovation: How firms reel in migrating value. Long-range planning, 51(1), 82-110.

Hewlett Packard Enterprise. (n.d). ‘’Timeline of our history’’. Retrieved from

HP Social Responsibility Report. (2019). ‘’Supply Chain responsibility: our approach.

Kotler, P., Kartajaya, H., & Setiawan, I. (2019). Marketing 3.0: From products to customers to the human spirit (pp. 139-156). Springer Singapore.

Lee, A., & DuVernet, K. (2019). Building diversity: The value of inclusivity in the construction industry. Const. L. Int’l, 14, 50.

Md Yusoff, N. S. (2022).Hewlett Packard Enterprise(HP).

[1] Hewlett Packard Enterprise. (n.d). ‘’Timeline of our history’’. Retrieved from

[2] Md Yusoff, N. S. (2022).Hewlett Packard Enterprise(HP).

[3] Hacklin, F., Björkdahl, J., & Wallin, M. W. (2018). Strategies for business model innovation: How firms reel in migrating value. Long-range planning, 51(1), 82-110.

[4] Kotler, P., Kartajaya, H., & Setiawan, I. (2019). Marketing 3.0: From products to customers to the human spirit (pp. 139-156). Springer Singapore.

[5] Lee, A., & DuVernet, K. (2022). Building diversity: The value of inclusivity in the construction industry. Const. L. Int’l, 14, 50.

[6] HP Social Responsibility Report. (2019). ‘’Supply Chain responsibility: our approach.

[7] HP. (n.d). ‘’Welcome to HP: about us’’.

[8] Supply Chain. (n.d). ‘’ Hewlett Packard: Supply chain, the great enabler’’.


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