Hewlett-Packard Industry Analysis

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Hewlett-Packard Industry Analysis Vincent Conder, Kylar Ferguson, Jessica Sorey, Miguel Valencia

Introduction Hewlett-Packard was founded as a partnership in 1939 by Bill Hewlett and David Packard This industry is made up of computer hardware/software as well as IT companies The major players in this industry are Lenovo, Dell Inc., and our own HP This industry aims to make IT environments more effective, productive, and secure The key to success in an industry such as this is innovation

Industries Personal Computer Manufacturing Computer Manufacturing

PEST Analysis Political Environment- What political relationships influence HP’s decisions. Economic Factors- What factors outside of HP’s control influence their behavior. Social Factors- What influences does the socioeconomic environment have on HP. Technological Factors- How does the advancement of technology in HP’s industry affect them.

Source: compTIA 2019 IT Industry Trend Analysis

Competitive Forces Competitive Forces Threats from new entrants Producing goods at a low cost Rivalry among competitors Porter’s Three Generic Strategies Cost Leadership Differentiation Focus

Competitors Lenovo Dell High sales despite declining PC market Innovative products Dell “Better, faster, cheaper” Target major corporations High performing products with longevity in mind High customer service

Keys to Competitive Success Porter’s Five Forces 1. Industry competitors 2. Threat of new entrants 3. Bargaining power of suppliers 4. Threat of substitutes 5. Bargaining power of buyers

Conclusion The computer industry is a stable, competitive market with any one company able to pull ahead at any time.There is low likelihood of any new entrants into the PC world. HP has been making moves to maintain a top spot by investing in research and development and appealing to a large portion of the market.