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
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).
References
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.