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Hp Analysis

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Company Information

The Hewlett-Packard Company, commonly known as HP, is a very large global company headquartered in Palo Alto, California, United States. Its products are concentrated in the fields of computing, printing, and digital imaging. It also sells software and services.

Histroy and facts

HP was founded in 1939 by Bill Hewlett and Dave Packard, who had both graduated from Stanford University in 1934, as a manufacturer of test and measurement instruments. Their first product was a precision audio oscillator, the Model 200A. Their innovation was the use of a light bulb as a temperature stabilized resistor in a critical portion of the circuit. This allowed them to sell the Model 200A for $54.40 when competitors were selling less stable oscillators for over US$ 200. One of their earliest customers was Walt Disney Productions, who bought eight Model 200B oscillators (at $71.50 each) for use in testing the Fantasound stereophonic sound system for the movie Fantasia.

HP is acknowledged by Wired magazine as the producer of the world's first personal computer, in 1968, the Hewlett-Packard 9100A. HP called it a desktop calculator because, as Bill Hewlett said, "If we had called it a computer, it would have been rejected by our customers' computer gurus because it didn't look like an IBM. We therefore decided to call it a calculator and all such nonsense disappeared". The company earned global respect for a variety of products. They introduced the world's first handheld scientific electronic calculator in 1972 (the HP-35), the first handheld programmable in 1974 (the HP-65), the first alphanumeric, programmable, expandable in 1979 (the HP-41C), and the first symbolic and graphing calculator HP-28C. In 1984, HP introduced both inkjet and laser printers for the desktop. Along with its scanner product line, these have later been developed into successful multifunction products, the most significant being single-unit printer/scanner/copier/fax machines.

In the 1990s, HP expanded their computer product line, which initially had been targeted at university, research, and business customers, to reach consumers. HP also grew through acquisitions, buying Apollo Computer in 1989, Convex Computer in 1995, and Compaq in 2002. Compaq itself had bought Tandem Computers in 1997 (which had been started by ex-HP employees), and Digital Equipment Corporation in 1998. Following this strategy HP became a major player in desktops, laptops, and servers for many different markets. The buyout made HP the world's largest manufacturer of personal computers. was launched in 1998 as HP's direct-to-consumer e-commerce store, and in 1999 became incorporated as a wholly owned subsidiary. In 2002, Compaq's direct-to-consumer e-commerce store, CompaqAtHome, joined, creating a comprehensive, one-stop, on-line store for HP and Compaq home and home-office products.

Hewlett-Packard is also involved in the NEPAD e-school program to provide all schools in Africa with computers and internet access.

1. The General Environment

Computer industry is a collective term used to describe the whole range of businesses involved in developing computer software, designing computer hardware, the manufacture of computer components and the provision of information technology services.

Demographic trends

Two major demographic trends should be taken into account while studying the general environment of the computer industry: age structure of the users and income distribution. Other important trends are: gender and geographic distribution.


Nowadays, technology has been rapidly growing. Technology affects many parts of societies. Being in the computer hardware and software industry, firm must thoroughly study, understand and analyze all aspects of technological segment.

The rapid pace of innovation in electronics technology makes for a constant demand for newer and faster products and applications. This demand puts a greater emphasis on R&D than is typical in most manufacturing operations. Being the first firm to market a new or better product can mean success for both the product and the firm. Even for many relatively commonplace items, R&D continues to result in better, cheaper products with more desirable features. Many employees, therefore, are research scientists, engineers, and technicians whose job it is to continually develop and improve products.

The unusually rapid pace of innovation and technological advancement requires a high proportion of engineers, engineering technicians, and other highly technical workers to continually develop and produce new products. Likewise, the importance of promoting and selling the products manufactured by the various segments of this industry requires knowledgeable marketing and sales workers. American companies manufacture and assemble many products abroad because of lower production costs and new trade agreements.

Economic Trends

Socio-Cultural Norms

Workers with different levels of education find employment opportunities in the computer industry.

Women make up the majority of Internet consumers, but play a smaller role in the actual creation of the technology. Even though it affects so much of their lives, they comprise less than 20 percent of the nation's computer science research graduates.

Global Arena

The computer and electronic product manufacturing industry produces computers, computer-related products such as printers, communications equipment, and home electronic equipment, as well as a wide range of goods used for both commercial and military purposes. Companies producing intermediate components and finished goods frequently locate near each other because doing so allows easier access to recent innovations. Although some of the companies in this industry are very large, most are actually small. The history of innovation in the industry explains the startup of many small firms. Some companies are involved in design or research and development, whereas others may simply manufacture components, such as computer chips, under contract for others. Often, an engineer or physicist will have an innovative idea and set up a new company to develop the product. Although electronic products can be very sophisticated, it has been possible



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