Hewlett-Packard Firm’s Global Strategic Management

HP is a company that has products of high quality ranging from computers to printers. These brands are well known by consumers all over the world. The majority of people prefer to utilize them for both personal and business use.

SWOT Analysis

Low cost Differentiation Focus Pre-emptive
Strengths: merger with Compaq Enables link on
company organization
Commands the price of the product. Target may be profitable. Customer loyalty builds.
Weaknesses: Operational efficiency Companies entering the market slash prices Rivals may differentiate their products too. Rivals eventually get to know how to compete. It is costly for companies with issues of operations to pioneer
Opportunity:New technology Chance to explore new technologies Enables the process of differentiation to be easy. Will enable the company to become more competitive. Take the rival companies by surprise and not reveal the secrets behind the new technology.
Threat: Market trends As market trends change the company will be at an advantage because their costs of operation are less. Products many differentiated companies such that even when the market trend change for better or for worse the company will still be in business Markets will change but the organization will not be affected because they have tapped the market efficiently The rival companies will be discouraged when the markets trends change and can lead to the closure of the business

Competitive strategy and competitive advantage

Competitive advantage puts the company in a position that favors the execution of operations in a way that is efficient in comparison to the other companies they are competing with. Competitive advantage ensures that the company focuses on the benefits that are directed to it. Competitive strategy is how a company belonging to a certain line of business competes with the other companies so that they can have a competitive advantage over them. Decisions that are made in competitive strategy ensure that they produce results that make the company stay on top of the business big time (Eisner & Lumpkin, 2009).

HP has a competitive advantage over its rival companies so that it can become oriented to competition. However, they cannot be able to have a competitive advantage without having a competitive strategy. The competitive strategy that HP uses ensures that it has a sustainable competitive advantage. It has enabled HP to define its business more, based on today and the future. It enables HP to know the markets in which they will compete in and they also gain an insight into the approaches that they face.

Lately, HP has released notebooks that are new to keep up with the competition from other companies such as Toshiba, IBM, and Acer. This ensures they are up to date with the current innovations and hence tapping a very large number of customers. They have also updated some of their models to make them more efficient for the customers.

HP printers are of good quality and very affordable. Above all HP products, the printer is the most preferred by the majority of people who are in business. The components to the value of the product chain are; a good infrastructure which gives it a good business foundation, better human resource management which comes up with creative ideas regarding technology, and efficient marketing and sales of HP which has enabled worldwide recognition of HP. HP also offers support services of installation to their customers. (Craig & Sadler, 2003).

HP is open to differentiation because it has a very wide range of products. With the differentiation of its products, it will be able to diversify in good markets. HP has been able to produce a very high number of products from printers to computers and more computer accessories which are of different models (Hitt & Ireland, 2009).


Craig, C. & Sadler, P. (2003).Strategic management.Lodon.Kogan Page Publishers.

Eisner, A. & Lumpkin, T. (2009). Strategic Management: Creating Competitive Advantages. Sabine, TX: McGraw-Hill.

Hitt, A. & Ireland, D. (2009).Strategic management: competitiveness and globalization: concepts & cases. Independence, KY: Cengage Learning.

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