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Business News/ Specials / Management/  Management case | The return of Hewlett-Packard
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Management case | The return of Hewlett-Packard

The latest numbers from IDC on market share in PC segment for the April-June quarter have placed the firm as a clear leader in India

Hewlett-Packard focused on consistent product innovations to improve utility for individual consumers and for the enterprise customer. Photo: BloombergPremium
Hewlett-Packard focused on consistent product innovations to improve utility for individual consumers and for the enterprise customer. Photo: Bloomberg

The latest numbers from International Data Corp.(IDC) on market share in the personal computing (PC) segment for the second quarter (April-June) of 2014 have placed Hewlett-Packard Co.(HP) as a clear leader in India. HP has around 30% share in the overall PC business—a growth of 2.1% over the first quarter of 2014.

Slowing demand

In the first quarter of 2012, rival Lenovotopped the chart with 15.8% PC market share, followed by Dell(15%) and HP (14.9%), according to IDC estimates.

Apart from the general economic downtrend, the industry was hit by the growing popularity of tablets, especially in the consumer segment, and deferred buying in the commercial space. HP was left behind when some of the firms surged ahead due to large government orders, driven by cheaper price. Indian consumers were mainly driven by price consideration, and not features. Lastly, the innovation quotient of HP had slowed down. HP, however, continued to dominate the printer category.

Rebooting the system

Hit by the slowing pace, the management at HP took some decisive actions. It focused on consistent product innovations to improve utility for individual consumers and for the enterprise customer.

On the organization side, HP consolidated and restructured over the last two-three years. For instance, printer and PC businesses were merged. At the same time, HP worked to expand distribution and access.

Refreshing the strategy

The management focused on launching innovative products: it unveiled its mobility portfolio—the HP Voice Tab in 6- and 7-inch formats, and the HP Omni 10-inch tablet in the first quarter of 2014. It launched the HP Pavilion x360, the first notebook computer that can rotate 360 degrees. It also launched an all new HP Business Systems portfolio (consumer products) in June 2014 .

On the marketing side, its advertising campaign for HP printers targets parents of school-going children. The company also intensified its presence across digital and social media to engage with the consumer. It signed on Bollywood actor Deepika Padukoneas the brand ambassador.

The company also formulated a multi-pronged distribution structure covering almost all IT resellers in the country. Over 380 HP World Stores were opened in 140 towns. The firm tied up with over 10,000 multi-brand outlets and resellers. HP’s retail coverage ensured that almost all towns in India with a population of over 10,000 have its products available. These include over 1,200 towns and cities across India.

Up and running

HP has also started winning government projects. The result: IDC has placed HP as the No. 1 brand in the consumer PC segment with an increasing share, especially in notebooks. In the commercial space, the company has become a leader with more than 50% share in the business notebook segment and leads in workstations too. In the printer segment, it continues to be the dominant leader with over 60% share.

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Published: 30 Sep 2014, 05:41 PM IST
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