Hewlett-Packard Case Study

CASE STUDY

Hewlett Packard Corporation – 2007

Submitted by:

ACC 401

Submitted to:

Mr. Mark Jayson Claveria Bitualia

I. Case Summary

Hewlett Packard Corporation --- 2007

HPQ

www.hp.com

Hewlett-Packard (HP) had $91.7 billion in annual revenue in 2006 compared to $91.4 billion for IBM, making HP for the first time ever the world’s largest technology vendor in terms of sales. HP also now is the largest company in worldwide personal computer (PC) sales, surpassing rival Dell, market research firms Gartner and IDC reported in October 2006. The gap between HP and Dell widened substantially at the end of 2006, with HP taking a near 3.5 percent market share lead. For the nine months ended July Group and Imaging & Printing Group and higher income from its Enterprise Storage & Serves segment. Net income reflects decreased research and development expenses and the presence of gain on pension curtailments and pension settlement. In September 2007, HP completed the acquisition of Opsware Inc. and a month later HP completed the acquisition of Neoware Inc.

HP’s remarkable turnaround since 2005 has been headed by Todd Bradley who refocused HP on retail distribution of computers rather than trying to defeat Dell in the Internet and phone PC business. Now trying to regroup and recover, Dell in May 2007 began for the first time to sell PCs through retailers- Wal-Mart stores and Sam’s Club stores. Dell is a fierce competitor with limited brick-and-mortar facilities and employees compared to HP and fewer middleman expenses. HP vs. Dell is a classic corporate battle although there are many other rival firms such as IBM, Apple, and Canon, as well as foreign rival firms such as Lenovo.

According to NPD Group, 61 percent of PC’s sold to consumers in the first quarter of 2007 were bought in a store, up from nearly 54 percent in 2005. HP increased its share of that market worldwide to 12.3 percent in 2007, up from 9.2 percent in 2006, while Dell’s share...