Hewlett Packard Enterprise Company (HP)

Running Head: Hewlett Packard Enterprise Company
Hewlett Packard Enterprise Company (HP)

Hewlett Packard Enterprise Company 1
Hewlett Packard Enterprise Company (HP)
HP is an American multi-national information technology company which based in Palo
Alto, California. Its founders are David Packard and William Redington Hewlett. HP creates
a wide variety of hardware components and software for individuals, small and medium sized
businesses, large enterprises, governments, healthcare institutes and educational institutes.
HP faces competition from firms like Dell, Apple and Compaq. In the competitive world of
today, HP needs to sustain in the business with the help of different marketing strategies
which can be adopted on the basis of market study (Milak et al., 2013). HP faces fierce
competition in the industry of technology. Various issues in both HP market and the industry:
Fierce competition: The level of competition is high on the basis of brand name, technology,
product lines and the distribution, leading to lower price differentiation (Pratap, 2017). Due to
this, substitution costs are low. The major competitors include Dell, Lenovo, Vaio and Apple.
They are all established firms with major market share. The difference is created on the basis
of price levels, innovation and marketing. Since technology gets out-dated quickly, the
lifeline of the products is small. There exists price war and can only be avoided with
innovation.
Options available for the customers: There are a wide range and variety of products
existing in the market. People have numerous options to switch to in case of adversities. HP
cannot charge high for its technology and products given the consumer behaviour of
switching. Pricing is done not only on the basis of costs of production but also according to
the costs prevailing in the market. Here, product differentiation is the key.
Cell phone and Tablet industry: HP is non- existent in the cell phones sector. Apple and
Samsung rule the markets. The technology and services provided by the competitors are far
better than the HP products. There is a shift towards tablets and smartphones from personal
computers. Tablets produced by HP are not of competitive technology and utmost quality.
Competitors who operate only in this industry offer better products, both in terms of
technology and quality. HP is mainly a follower in these two industries.
Obsolete technology and parts: The main concern regarding technology is that it changes
almost every day. HP and other rivalries have to discontinue many of their products. This is a
matter of concern for the customers who bought the products in the past but need repairs or