Impact of Megatrends on Hewlett-Packard (HP) Company

This article discusses the impact of megatrends on Hewlett-Packard (HP) Company, including globalization, rapid urbanization, changing demographics, accelerated innovation, and frictionless business. It also explores how HP aligns itself with these trends to ensure its market future.

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Introduction
The Hewlett-Packard (HP) was formed in January 1939 with headquarters in Palo Alto,
California in the United States. It deals with a wide variety of software and hardware
components and other related services. It was started in a garage in Palo Alto by David Packard
and Bill Hewlett. At that time, it dealt with electronic test equipment. It was leading in the world
of personal computers manufacturing from the year 2007 to 2013 before Lenovo took over. Its
field of specialization is in developing and manufacturing computing, networking hardware, data
storage, delivering services and designing software (De Vries, Bekkers and Tummers, 2016,
pp.64). The main product lines are software, networking products, personal computing devices,
industry-standard servers and diverse range of printers and other imaging products. Every
business company is looking for megatrends that can help them transform business. Since
predicting the future is not easy, technologist should be on the outlook for not only the latest
technology but also the forces that will shape humanity in the future. The hp company main
vision is innovation that is supported by the megatrends which will assist the company to
transform global forces that will have a future impact on businesses, economies, societies,
personal lives, and cultures around the world. Megatrends are transformative forces that are used
by a company to acquire long-term change. Before adopting any megatrend, companies must
identify the effects of those megatrends to the company in the future.
Megatrends have a big effect in business and day to day life. Megatrends affect the
general lifestyle of people. Businesses are using the megatrends in assessing opportunities and
ideas. A right opportunity should be identified and selected for a business to be a success. The
megatrends that have impacted the consumer world include globalization, rapid urbanization,
changing demographics, accelerating innovation, bio-convergence, beyond human, and climate

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change. Therefore, companies that operate in the current environment have changed since
businesses need to acknowledge, opportunities and threats which are the reasons behind the
transformation in the business world. After HP was outnumbered in the ranking by Lenovo
Company, it had to devise strategies to maintain the reputation and standards of the company.
Megatrends can impact companies like HP in a positive and negative way. As far as
globalization is concerned, megatrends are of importance to the company. The adoption of global
technology comes with increased cyber-attacks risk (Stank, et al., 2015, pp.190). Cyber-attacks
are hard to predict hence companies like HP should innovate and achieve higher degrees of
resilience and trust. On the positive side, megatrends are a global force that exerts influence on
the consumer’s lives, age groups, and people’s social lives. For this reason, companies should
upgrade to the current trends to create a link between their brands and the target groups that may
adapt to the changes.
Hyper globalization as a key megatrend in Hp Company is essential for the success of
this company. Due to hyper-globalization and hyper-localization, the hp company can market
their products in a wider region and this will, in turn, increase their sales. In the past challenges
and opportunities for business scaled with connectivity. The present world has transformed since
people and technology have a big connection with digital platforms. The enhanced digital
security has become an important tool for the business sector. Globalization has integrated the
economic system of the world resulting in mobility of goods, financial goods, and people
through the advancement of technology and changing consumption patterns. Globalization will
make the emerging companies become a challenge to the existing companies hence disrupting
the business models and the marketers. Due to pressure from the emerging companies, HP must
reinvent itself constantly to maintain its competitive nature in the market. Successful companies

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like hp should prepare themselves to handle new forms of payment since customer’s buying and
paying rate for services and products are being digitized at a high rate. This will help HP to keep
up with the market competition and maintain the image of the company.
Accelerated innovation as another megatrend of the HP Company is a case where the
speed of innovation is rising up leading to shifts in the world economies, population centers, and
industries. The rapid innovation transforms the lifestyle of people, the way they work which
leads to the creation of new jobs and displacing others which cannot cope up with the rapid
change (Hansson, et al., 2014, pp.250). This creates an opportunity for HP Company to be smart
and upgrade their technologies. The hp company takes the opportunity to create technology that
will improve the lives of consumers. Additionally, emerging technologies such as 3D
transformation, hypermobility, internet, and others will support advancements in connectivity,
computing power, and immersive computing to deliver bigger experiences. The rise of AI will
result in mass automation of tasks, workforce, and manufacturing (Sharon, et al., 2015, pp.50).
The development of manual job automation continues with the use of industrial and services
robot in industries. The megatrend will shape HP’s future innovation and strategy. The
megatrend can give HP a direction on the changing behaviors of markets, industries, and types of
solution that the company can use to overcome the demands of the happening shift (Zang, et al.,
2015, pp.150). Innovation helps HP to shape the company’s present situation for it deliver new
products and services and will suit the future market needs of consumers.
Another megatrend is rapid urbanization. It is estimated that by 2030 there will be 8.5
billion people on earth. They will move to different cities to seek a better life and this will
increase the population in each city (Pęciak, 2016, pp. 173). The available resources will be
scarce forcing them to share living and workspaces. The movement of millions of people to the

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cities will also put a strain on, energy requirement, infrastructure costs, and cities to become
smarter and more efficient. The economies that will be emerging particularly will be on the
lookout for several innovations to assist them to counter the previous limitations of their
infrastructure, business models and government. As social attitudes change and economic
conditions rise, females will have a huge impact on the world’s economy. Urbanization will
make Hp Company use the opportunity to increase its production to maintain the growing
population. Since the economy will be high, the company will be forced to maximize its output
and give out quality services and relatively reduced price due to economic constraints (Galińska,
2018, pp. 600). The HP Company will have to focus on space optimization, product, and services
that will suit the urban living styles in order to maintain and protect the company’s reputation
and build its brand name.
The changing demographic megatrend will also have an impact on the reputation, image
of HP Company. The changing demographic populations will also create opportunities for the
company. A new generation which is Generation Z (Gen Z), that is about to the enter the
workforce in the United States that involves those born between 1995-2010 is predicted to make
up to 36% by 2020 in the global workforce (Watanabe, Naveed, and Neittaanmäki, 2016, pp.
63). This generation has grown using the internet and is an expert in communication and
digesting information at a fast rate. This will lead to a split between the old and young
generation. By 2030 only a third of the global population will be over 65. This means there will
be a reduction in the numbers of employees per retiree and pre-work age population. More so,
there will be a shrinking and aging workforce leading to a strain on government spending and
healthcare. This will, in turn, put a strain on output and productivity. This will be an opportunity
for the HP Company to invent innovations in robotics and digital health that will reduce the gap.

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HP will be forced to cope up with other emerging companies in the technology industry by
improving their previous good and services that will suit the young generation. They will need to
put to use the exponential technology growth of artificial intelligence (AI), faster computing, big
data, microfluidics, and mobility in order to meet the rising health challenges.
Additionally, frictionless business is also a megatrend that can influence the reputation of
a company. Technologies such as artificial intelligence, internet of things and blockchain are
combined to enable transformation processes across businesses (Day, et al., 2014, pp 35). The
technologies range from the faster-automated product creation which goes through generative
design, to the transaction streamlining using blockchain that involves application ranging from
cryptocurrencies to smart contracts. The HP Company should devise the 3D printing which lays
the groundwork for how artificial intelligence, robotics, and the internet of thing will work
harmoniously to reshape manufacturing (Ahamer, 2014, pp.190). Hp should introduce the small
batch, made-to-order, and more energy efficient production era at micro plants which should be
located near the cities where consumers live. This will do away with the far-flung past supply
chain eliminating pollution and costs which are as a result of the present shipping of goods all
over the world. This megatrend will help HP to build the company and maintain its quality
standards. In addition, this trend will the HP Company to build solutions that will assist
businesses to be in touch with the skyrocketing innovation speed and deliver advance that will
improve people’s everywhere.
Among the core primary goals of corporate organizations, securing the market future of
their product ranks at the top. Technological advancement is happening at a very high rate and
consequently, not a single company can run its business without borrowing from externally
developed technologies (Retief, et al., 2016, pp.59). The shift in technology provide

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opportunities for corporates to embrace innovations. At HP, they align themselves with the
megatrends by providing predictions as to where the future of the world lies. They focus on
ensuring they conform to the new technology and book a place for itself and its customers in the
future world. The HP corporation has therefore formulated four major trends that they view will
shape the future world. In understanding the outlook of these trends, the company can effectively
understand the opportunities and constraints each of them poises and therefore, act accordingly.
These trends are; rapid urbanization, changing demographics, hyper-globalization and
accelerated innovations (Begović, 2018, pp.510). Each year, HP evaluates each of the trends in
trying to identify which of them is changing and what new themes are emerging.
Rapid urbanization entails the influx of people into the major cities and towns. Mckinsey
opines that by the year 2025, approximately 1.8 billion customers will join the world of
economy. A staggering 95 percent of this new consumers influx will be on the emerging market.
These statistics provide HP with the opportunities to evaluate their products in accordance with
this new global market (Lanoszka, 2016, pp.75). The company has to be innovative and come up
with a more user-friendly computing apparatus that will attract the new market. Additionally,
more women are taking the lead in influencing purchase powers. It is estimated that women in
the US, control 14 trillion dollars of wealth (Krapovickas, et al., 2016, pp. 70). This gives the
company a gap of coming up with products that will attract female buyers. In developing
countries, however, the growing urbanization and capitalism drive the rift further between the
haves and have-nots. Majority of the middle-class consumers are driven by value rather than
quality in their purchasing patterns (Long, et al., 2014, pp.540). This provides HP with the
opportunity to tap into this market by providing market value products. However, urbanization
may negatively impact the operation of the company owing to the large influx of people. This is

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because the large numbers will significantly put a strain on the available resources. The company
will, therefore, be required to come up with efficient methods to conserve energy and maintain
their production goals.
The changing demographic is another megatrend that HP will have to focus on. The
millennials are well conversant with the emerging technology as opposed to their older
counterparts (Bricker and Foley, 2013, pp.180). The company has the opportunity of taping into
these young minds by offering employment opportunities to this zealous and innovative
generation (Laval, 2015, pp. 54). Their input can significantly increase the productivity of the
company. The company, however, has to strain hard to meet the demands of the new technology,
by embracing a more robust means of production.
Hyper globalization is the concept of uniting the world markets. This concept will ensure
a wider customer base for HP providing the company with a large recipient for their products.
However, this requires the company to reinvent itself in order to remain competitive. HP has to
establish multinationals and subsidiaries in different regions of the world. The company should
brace itself to handle new payment methods such as the cryptocurrencies (Pendergast, 2013, pp.
60). The world is fast advancing to a cashless economy. Majority of people are adapting to
mobile transactions and the use of cards. Additionally, this new technology brings risks such as
incidences of cyber-attacks and cyberbullying (Lida, 2016, pp. 5). HP, therefore, will need to
establish secure servers to guard their sensitive information against hackers.
Accelerated innovation as a megatrend encompasses of new components of the
technology. Artificial Intelligence (AI), is taking over production in large corporations. This give
companies opportunities to increase efficiency in their production method (Ranjan, et al., 2017,

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pp.318). AI can assist hp to make more products while cutting the cost of human labor. This,
however, is detrimental since the company will have to lay off some of its workers at the expense
of robotics. The shift in technology in relation to exponential growth and change in technology
may result in a phenomenon known as the singularity (Mezhov, et al., 2014, pp.453). This
basically means AI surpasses humans in intelligence. This will result in AI assistants to handle
the daily routine task and anticipate the probability around humans (Eiter, et al., 2014, pp.265).
This intelligence automation is not about being in the future but is right here (Ghahramani, 2015,
pp.452). Being a computing company, HP has the capabilities of tapping into this technology and
assist in the production of this enablers. Concerning the mobile world and messaging
interactions, the focus is gradually shifting from operating system enabled messaging apps to
chatbots. The trend of the mobile application is being replaced by robot-controlled messaging
interfaces (Garage.ext.hp.com, 2018). Chatbots saves on time as they are not humanly controlled.
They can give feedback based on the data they are fed with (Ju and Sohn, 2015, pp.50). Even
though the chatbots lack the human touch, they can be effectively used in corporate systems to
addressed escalations that have been raised by consumers. HP company has the opportunity to
develop further the interactivity of the chatbots. The market for such systems is growing in
demand each passing day. The megatrends in robotics are fast developing and in the near future,
the world will be run by these bots (Hovy, Navigli and Ponzetto, 2013, pp.25). Tech companies
like HP can develop more personalized AI systems that can perform tasks such as scheduling the
calendar, prioritizing emails and booking holidays. The use of AI may become as critical as the
internet today. Job automation in the various sector can be done using these AI robots (Fallon, et
al., 2015, pp.235). With the speed at which technology is advancing, job automation is moving at
a faster rate than the ability to come up with new jobs. HP has also found a market opportunity in

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3D printing by laying the foundation of how AI, internet of things and robotics will work
together to revamp manufacturing. The discussed megatrends will critically require huge
investments, especially in the acquisition of new machines for the development of hardware and
software components. HP company has to critically invest in these new modern trends, therefore,
the new technology will come with money constraints. Additionally, the laying off of workers
following job automation will result to unemployment crisis (Anderson, Potočnik and Zhou,
2014, pp.1300). The company will also face competition from other technology company with
each trying to grab a market share in the new modernized world. This constraint will require HP
to reinvent itself to weather the storm of competition. Lastly, globalization may bring about new
regulations that will tend to govern the operations of the multinationals. Such regulations may
include additional taxes and new operating licenses. The company may be required to comply
with the set regulations guidelines in order to be allowed to operate in the hyper-globalization
space.
In the modern economy, consumer behavior and purchasing pattern are based on the
reputation of the corporate. Modern consumers do not only care about the quality and value of
the products but also to consider how the corporate is presenting itself in addressing both internal
and external factors. The modern consumer is more concerned with how the company is
participating in the social welfare front through its corporate social responsibilities initiatives and
if the corporation is following the prescribed rules and regulations governing corporate conduct.
The credibility of a company in addressing issues of contention will reflect on the company’s
ability to embrace global megatrends. Reputation is basically the beliefs and opinions held by the
general public about something or someone. In the corporate and business settings, reputation is
based on the company’s past performance, corporate responsibility, and management character.

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Reputation is important in the success of HP because its aspect affects the general performance
of the company. The way the public view HP will inform trends in purchasing, production, and
public relations trend of the company. The consumers need to know more about the company.
They need to develop opinions that will inform them on how to relate to the company.
Essentially when a business has no reputation, it is just as bad as when the business has a bad
reputation. Reputation in HP facilitates the business by putting it into the map and offering a way
through which the customer can start interacting with the business.
Following the modern trends in business operations and consumer behaviors, an action is
a key determinant in building a strong reputation. HP needs to improve on their communication
skills, particularly listening to the emerging issues. This also constitutes re-evaluating the
company’s relationship with stakeholders that matter and developing a network of influencers,
who can propel the interests of HP. The best way to achieve this is disposing of a team to the
grassroots level to gather intelligence and feedback from the customers and act on the threats that
may impact the reputation of the company (Wæraas and Sataøen, 2014, pp.245). A company’s
reputation is in recent times scrutinized by indirect stakeholders. The number of activists and
online networks has significantly increased in recent times. These stakeholders are more holding
business into account, thanks to the new and improved technology. Nowadays, the advancement
of web platforms and social media networks have given activists the tool for scrutinizing
corporations. These tools interconnect the globe, and happenings for example in the US can be
accessed by a consumer in South Africa due to the new flow of information. What was formerly
categorized as just operational mishaps as a result of unresponsive systems or processes now
often appear as reputational risks whose cost is far-reaching. In a tech company such as HP, for
example, data privacy is now a reputational concern. Following data breaches that have been

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experienced in corporations such as Facebook, data companies are constantly establishing more
secure channels to protect information of their clients. Additionally, transparency is key to
maintaining a company’s reputation. HP company in guiding its reputation should ensure critical
information that may affect their product are effectively communicated to the consumers (Ren, et
al., 2015, pp.60). Withholding such information or attempting a cover-up may taint the image of
the company as the consumer will lose the trust that has been developed over time. HP should
understand the reputational concern that may affect its stakeholders and develop a wider
understanding of how such issues affect their product services and other activities. In trying to
improve issues of environmental concern, for example, HP needs to evaluate its environmental
sustainability concerns and ran a benchmark test with those of the competitors. They should
present facts and findings in an objective manner and try to quantify the variables. This will help
the company in avoiding any gaps in performance or ignoring fundamental issues.
The analysis developed will boost the company’s image by showing the stakeholders it
cares for environmental sustainability. However, such key analysis is not enough as the company
must strive to ensure it meets the expectations placed by the stakeholders, especially those that
influence growth and sales (Peer, Vosgerau and Acquisti, 2014, pp.1024). HP should not only
focus on traditional stakeholders such as employees and shareholders, but also adapt indirect
ones such as media. It is imperative that the company gain an insight into public opinion. Every
stakeholder has their own concern and perceptions. The shareholders may be concerned by
whether reputational concern will affect the growth of the company. On another hand, regulators
such as governments through their respective agencies may be concerned by the need to impose
sanctions and curb a company operation. The indirect stakeholders such as the media may
wonder if the company is exploiting the consumers. To address the mentioned issues, HP can

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hold a press analysis to understand media concerns. The company should also be transparent in
their operations and follow corporate procedures as outlined in the law of the land. Additionally,
the company should hold focus group discussions with the members of the public to gauge the
position of public opinion.
A good reputation is built on the foundation of action. Modern stakeholders can detect
public relation campaigns that are deceitful and not supported by the way the business performs.
Transparency in matters such as production processes and treatment of employees is crucial.
Transparency also manifests in the willingness and openness of the company in coming forward
and claim responsibility for faulted goods in the market. This step cements the trust between the
company and the stakeholders. In cementing relations. HP should also participate in acts of
goodwill such as sponsoring environmental conservation campaigns (Saeidi, et al., 2015,
pp.340). This willingness to act may offer some degree of cover for the company in case of
future bad image.
Conclusion
From the foregone analysis, it can be deduced that the future trends of the world have a
significant effect on the operations of companies. The world is constantly changing and this
makes the interaction with these trends difficult. Concerning HP’s megatrends, the focus is
clearly defined on sustainability. The company aims at ensuring they do not deplete the available
resources and consequently, they take a conserving approach. In trends like rapid urbanization,
the company is aware that this will result in an increase in demand for better service. The
company, therefore, is focusing on the value of their products and how they can reinvent them to
impact the growing population more efficiently. This has informed the company decision of

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coming up with new services such as 3D printing. Hp understands that these new products
should be economical, use less energy and fewer materials and be at per with the tasks they are
produced to perform. Concerning hyper-globalization, HP understands the need to tap into the
growing needs and markets. This is by not only producing flagship products, but also budgetary
ones that will cater for those individuals in the middle-class brackets, especially in the
developing worlds. Innovation is also at the heart of the company. The company aims at
designing products that use renewable materials and consume less energy. This exempts the
company from the over-reliance of scarce raw materials and also increasing sustainability while
advancing the success of the business. This approach encourages the consumer to run a more
sustainable life and conserve the environment. Reputation is also an important factor for the
success of the company. HP builds its reputation by making sure they deliver on their promises.
The company also attributes itself as trustworthy, transparent and responsive to the needs,
reviews, and feedback from their customers. The company understands that maintaining a
healthy and positive reputation is critical for the profitability and success of the business. The
company understands that lack of transparency, lack of response to stakeholders’ escalations and
bad word-of-mouth can significantly decimate their reputation. Reputation is not all about
positive feedback and good image. It covers a wide aspect including ensuring the company
thrives in the business ecosystem and continues to grow further.

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