Key Strategies of HP Inc.

HP Inc.

Introduction

The Hewlett-Parckard Company popularly known as HP Inc. is recognized as one of the largest manufacturers of computers in the world. The company deals with a broad spectrum of computer-related products and services, including availing customers of information technology-related services. In its entirety, the corporation is split into two major entities operating under two different names: Hp Inc., and Hewlett-Parckard Enterprise. The former dealing with the manufacturing and sale of computer and printing devices, and the latter, dealing with the provision of information technology (IT) services and consulting. However, despite the company’s major focus and goal which like many organizations is to make a profit, the company, however, is fueled with the passion to make the world a safe and better place to thrive and live in. This is evident in the company’s consistent efforts channeled towards improving climate action, digital equity, human rights, as well as technology and innovation. With a 3-dimensional trading scheme that includes personal systems, 3D solutions, and printers, the company is geared towards changing the global space with its innovative devices. The year 1938 witnessed the company winning its first biggest contract in history. The contract was to provide measurement tools for the production of Walt Disney’s animated film entitled Fantasia. And more than 80 years since its inception, the company has continued to evolve massively, striding from shore to shore, dominating the entire computer and printing devices market.    

In this article, you would be shown in detail several key strategies utilized by this giant company to achieve its great feat, however, before delving to addressing these key strategies, a brief overview of the company’s recent transition would be addressed. 

Knowing the HP Way

Without reservation, it is imperative to note that the history of HP as a company alongside its massive success cannot be complete without addressing the “Hp Way” which according to the co-founder of the company and the author of the book “the Hp Way” a person of David Packard describe as “a quintessential American success story.” The book in its entirety is about two vibrant American Entrepreneurs who are passionate about building an innovative system that works seamlessly across all digital markets, and by extension, positively changes the world. Thus, with just a few bucks amounting to a total sum of $538, not only did the two geniuses establish a manufacturing firm but also by extension, the world’s motherland of digital and tech startups known today as Silicon Valley was birthed.  

However, the success of the company up to this date is fueled by the stern and strong desires coupled with an intense discipline lifestyle common with most American business magnates. The duo had given it all they had to see the company’s foundation is rooted firmly so as to withstand the test of time, and without being biased, their travail was worth it as the company had truly withstood the test of time with its more than 80 years of existence and it’s still standing tall for hundred more years to come without falling.

The duo with a stern determination characterized by their passion to grow the business turn themselves into foremen-handling the entire aspect of the business themselves, ranging from product manufacturing and development to product packaging, to deal scheduling, to pricing, to marketing to sales, including performing janitorial roles to ensure the factory is clean after use. The company’s co-founder David Packard who is the author of the book categorically said “many of those skills they learned during the early stage of the business were not learned, and neither are they available at the business school.”

The two founders were entrepreneurs who have individually come up with their own handful of values and positivity. And although the duo area of specialization and field of study was different, nonetheless, they were able to complement each other; Bill Hewlett was a trained circuit technologist, whilst his second, David Packard was a trained computer manufacturer and developing engineer. Their first ever-made tool is an oscillator which they made by hand, however, the massive response they received from customers after the production of this tool sparked their interest to build and manufacture more devices.

After World War II, the duo decided to be more disciplined and to that extent, their business a stern approach by saying if they could not keep their business going in the right direction, perhaps they would be left with no other choice than to offer their facility space all up for sale to a supermarket business owner. However, if they are not willing to give in to such monumental loss, hence, they would have to be inclined with the changing world.

By the year 1951, the company had already evolved into a significant firm by going public with its initial public offering (IPO), and record of $5.5 Million USD alongside a total workforce of 215 employees. In that particular year, the company was planning the launching of one of the world’s biggest electronic-based research hubs. And in a few more years not too far from this productive year (1951), the company, leveraging on the increasing market of computers and electronic devices recorded a sale amounting to the approximation of 22 Billion USD and over 100 facilities scattered across the globe.

As the company began to evolve into an enormous corporation, the two founders agree there should be a laydown system which would serve as the company’s organizational culture and way of life, that it the way in which it would operate. However, the decision to establish this rule viewed by that desire is what led to the birth of “the HP Way” of today.

The founders felt the need for transparency and to get the objectives and goals of the company to low-line managers and supervisors who would act as the company’s eagle eye with making sure these goals and objectives are being accomplished in their respective teams and units. And finally,  resorted to the fact that no matter how large or enormous the company transformed into, it would always embrace and inculcate the HP way to every member of its staff and that the company would operate in what is known in the management world as the “bottom-up” management system, that is, a company where the opinion and decisions of lower level employees and frontliners matter to the heart of the company and are utilized to formulate the company’s policy.

Key Strategies of HP Inc.

Ability to Evolve:

The passion and desire for continuing evolution were one of the company’s biggest secrets and key strategies of winning since its inception in that one-car garage in Palo Alto California. The two determined-to-succeed entrepreneurs’ passion for evolution and continuous growth has been sparked by their market boom with their first manufactured oscillator and thus channeled their energies into building the business into an evolution-focused enterprise.  

Human Capital Investment

Investing in training, conferences, and symposiums is one great way the company had leverage to build itself a strong team of experts by extension turned out into being the manufacturer of industry leading electronic and computer devices, and hence the astounding industrial status of the company.

Market Diversification

Diversifying into the different markets is sure a great strategic tool most large corporations utilize and HP has not in any way been left out of this trend. The company in its entirety has a broad spectrum of products and services targeting diverse range of markets and bring in multiple streams of income for the company while technically increasing its revenue and net income.

Spin-Off

One of the key strategies used by the company is its spinning of strategy. In its entirety, the corporation is split into two major entities operating under two different names: Hp Inc., and Hewlett-Packard Enterprise. The former dealing with the manufacturing and sale of computer and printing devices, and the latter, dealing with the provision of information technology (IT) services and consulting.

Dedication to Research and Innovation

Another key strategy that had pushed HP Inc. into becoming a global colossus in the tech and computer industry is its dedication to research and innovation. HP Labs are the company’s proof of this strategy.

Robust Marketing

With a blended and strategic marketing system and team in place, HP is constantly breaking ground and penetrating massively into the world’s modern market – technology.

Logistics and Chain of Distribution

Having a supply chain and an uninterrupted distribution system is one of the key strategies to the success of HP; for one thing, is for customers to order products and another thing is for them to get them in a relatively swift and timely manner. With HP’s logistics and chain of distribution, customers can rest assured of uninterrupted delivery anywhere in the world.   

Acquisition Strategy

Another method used by HP to attain its matchless success is its acquisition strategy. Since its inception in 1939, the company has purchased and acquired top industry brands making it a formidable corporation in the marketplace.

Bottom-Up Management System

Another notable strategy used by the company is a bottom-up approach style of management which recognizes the input and decisions of customer-facing employees and uses them into shaping the organization and formulating policy.

Passion for sustainable development

And finally, the unwavering support of the company towards sustainable development through its consistent help to the social and environmental courses had earned the company a badge of honor both locally, regionally, and internationally.

Conclusion

It has been a long shot moment going through this piece which as judiciously addresses the key strategies of HP, that is, unveiling all there is to know about why the company is ranking excellently in the market and global space. Finally, I hope every single section of this piece has added one or more value to your knowledge horizon.