Critically assessing value proposition of hp

Value proposition is identical as competitive differentiation. It is the basis on which customers would purchase a company's product or service as contrasting to another's.

If the business can place it through plainly and the clients and employees concur that it's correct, then the company is running a business. And if the company isn't able to come up with a good one, then it'll likely experience the slow, excruciating loss of share in the market and erosion of margins in profit.

The IT industry is extremely volatile and ever before changing, it is hard to endure in this industry without invention.

Hp provides its customers with products allowed with the most advanced technology and sky powerful, and all of this at extremely logical prices. Adaptive border architecture used by hp helps it be simple for the business to provide to its customers forthcoming needs. By giving regular updates hp facilitates expansion of product and solution life.

Even though horsepower provides its customers with the benefits of latest technology at affordable price yet in recent times hp has didn't innovate that was made evident by the discontinuation of Ipaq smart mobile phones. The company's inability to establish mobile internet device in the first 50 % of 2010 has put hp very good behind.

Furthermore, income from printer ink sales, a major part of its Imaging & Printing division, have been declining as consumers are not only printing less, deciding on online storage space and changeover of documents, but also buying cheaper, generic-branded ink cartridges. Brands like InkTec and InkWise have gained popularity as consumers were looking to cut costs in the recession. The shrinking revenue stream is making stamping a smaller concern for the largest manufacturers.

Hp has its excellent focus on innovation and provides the clients with the latest plug and play and constant improvements. But in context of mobile phones it is however difficult to imply the same as hp has had difficulty in issues with using the house windows operating-system on touchscreen devices which in turn had been responsible for keeping hp top quality mobile phones from the fringe. Though by the acquisition of hand inc. hp looks forward to launch a web operating-system founded device in early on 2010.

Hp marketing mix


Captive Product Pricing

Hp uses captive market in the framework that its printers are listed in ways affordable to its customers but it will recoup its margin from the sale of its ink cartridges that fit those printers.

Promotional Pricing

Hp makes use of promotional pricing to market its products by making available various offers and vouchers. Hp offers discount to purchasers of large amounts and also to channel participants like National and sub distributers who perform further selling


Hp also uses segmented prices whereby home and professional customers pay different prices for the same product. Different types of the same product are charged in another way because of cool features.


Strengthening upcountry emphasis: for the personal printing range hp will be increasing its sales from 300 locations to 450 places through route expansion

Enhancement of availableness: 1500 multi brand retail outlets and new personal printing alternatives across 400 hp experience zones.

Customer experience development: increase in quantity of service centers from 273 to 342 and increase in customer care coverage from 114 to 155 cities.


Sales Promotion

Hp helps bring about its products by various money-off offers, introductory offers and other styles of coupons.

Launching of sweepstakes: a complete of 21 awards received out to people who won by submiting teir pictures and a short history about their computer printer.

Development programs focussed on market: personalized solutions offered for self employed, design agencies, photography enthusiasts and jewelers.

Direct Email.

Hp also uses direct mail to hook up to its potential customers.

Trade Fairs and Exhibitions.

Hp actively participates various fairs and exhibitions


Sponsorship opportunities that encourage and authorize creative people, is regularly seeked by Horsepower.


Imaging and printing,

The exemplory case of a computer printer.

Core gain: printing, fax, scan, duplicate.

Basic product: all in one printer

Expected product: high quality, low priced, fast printing, low noise

Augmented product: home delivery, major service network, guarantee cover, both home windows and mac OS supported, direct editing/designing.

Potential product: further slashing in expense per site, large size printing option.

Part 2


Hp and dell do have a few things in common. You start with rates both dell and hp sell their items directly and maintain a cheaper price. Both dell and hp keep promotions frequently for their laptops. Choice of various designs and colors for their products are proposed by both the companies. Both companies offer durable products and last long depending on use and treatment, a guarantee is also offered which may be expanded for a price

Dell mission

Dells mission is to be the most successful computer systems company in the world at providing the best customer experience in the marketplaces we provide. In doing so we meet the customer targets of:

Highest quality, leading technology, competitive pricing, specific and company accountability, best in course service and support, adaptable customization functionality, Superior corporate citizenship and Financial steadiness.

Vision statement

It's just how we conduct business; it's the way we interact with the city.

It's the way we interpret the world around us- our customer needs, future of technology and global business local climate. Whatever changes the near future may bring our vision- dell eyesight- will be our guiding push.

Hp mission

To provide product, services and alternatives of highest quality and deliver more value to your customers and earn their value and commitment.

Hp vision

To view change in market as an chance to grow, to work with our revenue and our potential to build up and produce ground breaking products, services and alternatives that satisfy growing customer needs.

Competitor analysis


Value proposition or competitive differentiation whatever you can call it, may well not guarantee success, but it isn't likely to make it happen either without it.

Value proposition to offer customers custom built ibm-compatible pcs directly from the manufacturers as well as for cheaper than other brand names was offered right from the start by Michael dell.

The major difference between dell and hp is within their string of supply. Even though hp sells directly to its customers yet it depends greatly on its indirect syndication models. Hp's targets providing its customers with the products of finest quality and latest technology at affordable prices whereas dell in this framework focuses on lowest cost with high quality that dell uses its immediate supply model.

Dell took up a new strategy to extend to notebooks, safe-keeping, peripheral etcfrom desktops, to contend against rivals like Horsepower.

But recently there have been various problems and miserable customers due to poor after sales service provided by dell.

Providing personal computer at low prices is how dell built its reputation. Yet dell does not give a customer intimate solution of course, if the product starts giving problems following a few months the feeling is likely to differ from the original acquisition experience.

Until now dell has stood by this process because its customers have a tendency to be experienced in the field of technology and aren't anticipating a great deal of after deal service. However customers are growing in figures and that's where the problems are due to.

Achievement of a decent market talk about by dell has in turn led to the business picking up new customers a lot of whom are novices or first time buyers requiring great deal of after sale services.

On the other hands, Hp's focus to reach the clients is broader than dell, as dell only appears to cater to the unsophisticated and educated customer.

Hp considers the essential market segments as different entities and targets them differently whereas dell considers the south Asian market similar to that of U. S. and Europe.

A Switch in Strategy

Dell being essentially an inexpensive provider doesn't have enough margins in income to offer full fledged customer service

But paid customer support was recently announced by dell. Apart from offsetting customer grievances dell is hoping to push up gain spinning customer service from an expenditure to a earnings center.

This however can lead to complicated customers by learning to be a services company and subsequently confusing the brand.

HP depends upon its customer's view and rating. This plan helps the business to get continuous responses about its products and present the support necessary for the products to be able to accomplish a strong support system. This plan helps the business to fortify the relations between company and clients.

Dell in the middle east

Dell does not however use its original direct selling model in the centre east but according to dr moneimne dell still passes on the advantages of the direct selling model like customization, affordable prices, acceleration of delivery and versatility.

It is not possible in the centre east to check out the original model anticipated to different traditions and legal construction.

Dell comes after the process of ethnocentrism whereas horsepower follows the policy of polycentrism.

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