This paper examines Hewlett-Packard's (HP) business-level and corporate-level strategies, evaluating how the company competes across its diversified technology segments. It covers HP's cost leadership and differentiation approaches, its overarching corporate strategy of high-quality product and service delivery, and its expansion through R&D globalization and strategic acquisitions. The paper also analyzes HP's competitive environment, identifying both domestic and international rivals, and explores the growing importance of socially responsible sourcing — particularly regarding conflict minerals — as a competitive differentiator. Finally, it considers how fast-cycle market conditions shape sustainable competitive advantage in the technology sector.
The paper uses a two-tier strategic framework — business-level ("How will we compete?") and corporate-level ("What business are we in?") — drawn from Hitt, Ireland, and Hoskisson's strategic management model. By explicitly stating the guiding question for each strategy tier before analyzing HP's approach, the writer demonstrates disciplined use of academic frameworks as analytical lenses rather than merely reciting theory.
The paper opens with a detailed company profile establishing HP's scope, then moves through business-level strategy, corporate strategy, and competitive environment in sequence. Two thematically distinct sections follow: one on conflict minerals as a social responsibility and competitive issue, and one on market-cycle theory applied to HP's industry. References are formatted in APA style. The structure mirrors a standard strategic analysis report, making it easy to follow and well-suited to its subject matter.
Hewlett-Packard Company (HP), famously founded in a residential garage in 1939 and headquartered in Palo Alto, California, has expanded into a wide range of business segments. HP and its subsidiaries manufacture personal computers and enterprise computers, thin clients (networked and server-dependent systems), printers, workstations, tablets, retail point-of-sale systems, calculators, and other technology accessories, as well as software, web services, and scanning devices. HP also provides technology support and services for both consumer and commercial markets.
HP's clients include individual consumers, but over the past decade the company has shifted its focus to primarily serve large enterprises — including global government, health, and education sectors — as well as small and medium-sized businesses (SMBs). HP's Enterprise Group division offers servers, business-critical systems, networking products, storage solutions (converged and traditional), and technology consulting and support in cloud, data, and mobility. The Enterprise Services division provides consulting, outsourcing, and support services across business process domains, applications, and infrastructure. HP's Software division offers enterprise information management (IM) solutions, IT management (ITM) software, and security intelligence and risk management solutions. Within the HP Financial Services segment, the company provides asset recovery, financing, leasing, utility programs, and specialized financial services geared to SMBs, educational systems, and government entities.
Business-level strategies address the question: How will we compete? HP demonstrates both cost leadership and differentiation business-level strategies. After several decades of struggle and a substantial number of redesigns, HP's offerings are now priced lower and more competitively than those of companies like IBM. This lower pricing is reflected in the low total cost of ownership of HP systems and their built-in flexibility. For instance, HP's slate tablet is priced lower than Apple's iPad. The HP-UX servers are also displacing IBM mainframe territory at companies such as Kumho Tires, headquartered in South Korea.
This type of conversion to the advanced HP-UX system exemplifies HP's differentiation strategy; HP has accelerated efforts to maintain its product offerings at the leading edge of innovative and disruptive technology. The business-level strategy most important to HP's long-term success is the total cost of ownership. Differentiation is particularly difficult in the technology sector because the pace of innovation is exceedingly rapid and consumers are highly attentive to the latest features of the technology they purchase and use. For this reason, built-in flexibility is a challenging route to competitive advantage; however, total cost of ownership is a variable that HP can meaningfully pursue.
Corporate-level strategies address the question: What business are we in? HP's overarching corporate strategy is the delivery of high-quality products and services across the diversified computer systems industry within the broader technology sector. HP has recast its core competencies to a substantial degree several times, and each evolution has required adjustments across divisions and departments. Research and development (R&D), for example, drives a level of innovation that is felt across most other segments of the business. In recent years, HP's corporate strategy has included globalization — expanding the R&D department into Ireland, for instance, enabled the company to add personnel and commit to the growth of technology-related capabilities in the complex global environment.
The most important corporate strategy for HP's long-term success remains the production of high-quality products and services that attract and retain market share. In this age of active social networking, it is easier than ever for consumers to publicly comment on the strengths and weaknesses of products and services. Companies that produce inferior goods or provide poor customer service do so at their own peril.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: Concepts and cases: Competitiveness and globalization (10th ed.). Mason, OH: South-Western Cengage Learning.
Makri, M., Hitt, M. A., & Lane, P. J. (2012, July 21). Complementary technologies, knowledge relatedness, and invention outcomes in high technology mergers and acquisitions. Business and Technology Review. Retrieved from http://strategyseminar.blogspot.com/2012/07/business-and-technology-review-of.html
Zax, D. (2013). Conflicts don't build character — they reveal its true nature. Smithsonian Magazine, October, 13–14.
____. (2014). Conflict Free Smelter Program. Retrieved from http://www.conflictfreesourcing.org/
Always verify citation format against your institution’s current style guide requirements.