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1、IntroductionMany international organizations tend to face the greatest struggle to survive their business in business world during the world economic crisis since the year 2008. All though most of the world financial authorities have confidence to economic recovery, however, many people believe this
2、 crisis could be worse, risky and ruinous than any of previous recessions because of the globalization context. How to sustain and promote the business in todays circumstance becomes a challenge. With a focus on business process and future vision of Hewlett-Packard (HP), this question-based case stu
3、dy analyses the opportunities and challenges to HP. Discuss its company vision towards the recession and digital environment by a new leadership. Question 1According to Kondratiev long-waves (Freeman, 1988), the world is currently facing the information and communication Kondratiev, which encountere
4、d a booming on computer network expansion and digital data orientation changing. People focus more on networking and integration of design, production and marketing. Technological change is a form of how to solve specific problem in highly differentiated and changeable environment.Hewlett-Packard wa
5、s founded in 1939. Now it is among the worlds largest IT companies whose products include personal computers, storage devices, printers, and networking equipment. HP provides IT and business process outsourcing, application development and consulting, systems integration as well as other technology
6、services. This comprehensive portfolio helps the company match the right products, services and solutions to their customers individual needs.1 a) The changing technological environment presents challenges to HP in terms of the threat by entry of new competitors, the bargaining power of both supplie
7、rs and consumers, threat from substitutions and competition from competitors in the same industrial field whose product has a short product life cycle.1) Competitive rivalry within an industryWith revenue totaling US$118.4 billion, profit US$8,329 million for fiscal 2008, HP has jumped into ranking
8、No.9 in fortune 500. Although its 2008 revenues were influenced by the economic disaster, HPs performance is still impressive with revenue rose 13%. () In changing technological environment, where demands shift and available resources fluctuate, IT companies require the right technology to stay effi
9、cient, competitive and profitable. As for HP, its competitors Oracle and IBM used to have separate and distinctive roles in the market. But HP is considered “lack of a distinct position in marketplace.” said D.Levinthal, a management professor at Wharton. Though HP is the largest PC and printer make
10、r in the world, with 41% of the global printer market and 17.6% of the PC market, lacking of differentiation of competitive advantage may leave HP in a situation of not be able to compete with IBM on technology services, or with Oracle on software and face off with Apple on its consumer business. Me
11、antime, HP tend to focus more on corporate technology instead of retailing to gain sustaining competitive advantage on networking organizations in the future 2) Threat by the entry of new competitorsApotheker said software is “the glue” that will hold the company together and allow it to leverage in
12、to valued added services. The big challenge is whether HP will have enough options to make that software-as-glue vision reality. Software accounts for only 3% of HPs revenue (Q3 FY2010). However, HP doesnt have a lot of acquisition targets in software, which means it already fell behind some new int
13、egration. At the same time, IBM and Oracle have acquired most of them. IBM adds to its software portfolio almost weekly with smaller deals in between larger ones like the Cognos purchase. Oracle goes for acquired Siebel, PeopleSoft, Hyperion and others. Analyst Peter Goldmacher sums up HPs software
14、challenge. “Its fine that Lane and Apotheker are software experts, but there are only so many cards to play.” ()This challenge means HP already has a number of competitors combined as new comers on its target new field of software.3) The bargaining power of suppliersHP purchases materials, supplies
15、and product parts from a huge number of operating partners. Generally, HP is in a dominance position with suppliers and has many options over available suppliers. However, it does rely on sole sources for laser printer engines, LaserJet supplies and parts for products with short life. HP is dependen
16、t upon Intel as a supplier of processors and Microsoft for various software products (HP annual report, 2008). From HP official website recently, LaserJet suggested HP to remanufactured Color LaserJet printer toner cartridges in order to reduce $76 less of unit cost than a set of Original HP one which dont meet business customers standards for external distribution. Additionally, Intel is the market leader of the industry with almost 75% of the market and there i
