HP

 

  HP’s CSO are market leader in computer’s production 

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  Price/performance factor is a USP

  Early success in the 1980s was followed by a decline in industry business

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  HP responded by redefining competitive strategy and revamping its product lines

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  Adoption of common RISC architecture, aimed at easing (low-reputed)marketing department’s job 

  Buying patterns shift to increasingly including OEMs, VARs and distributors

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  Consequence: lowered HP’s average prices and increase in cost of sales  

  Decision to focus on top forty to fifty customers

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UNIX workstation’s demand growing 40% per year

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application of Pareto 20/80 rule  

20% of CSO customers account for 80% sales

  HP serves this segment directly

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  HP sales rep invested time and effort from an early stage in learning their customers’ businesses

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both identifying problems and solutions to save money and increase efficiency 

 

salespeople transformed in consultants

CONCLUSION The two audits were conducted and recommendations r ecommendations by the consultant are consistent with the critical success factors of the three new ne w categories (down, mid and up stream) and with the t he findings. However HP needs to resolve its internal and external ex ternal issues (e.g. being positioned only as a hardware supplier) before moving on to a portfolio management strategy enter prises; it   That means focusing on training more salespeople in forging relationships with large enterprises; also involves prioritisation procedure for mid-stream and up-stream opportunities pre pared for such a switch (HP is not well known for its marketing   Currently, HP salespeople are not prepared savvy) In the new approach HP would enter an account at multiple levels instead of entering it at the downstream level and then trying to tackle the rest of the organisation’s needs

 

Also, there is a need for HP’s CSO to institute some changes to the current architecture:   Avoidance of numerous time drains due to sales rep “running in a treadmill” to do everything for

their accounts, e.g. Developing quotes, configuring systems   Need to prioritise the accounts and institute a support team specialised on understanding the

accounts’ needs further reducing wasted time    The latter point will reflect a better conversion rate in sales opportunities, focusing not solely on

repurchase opportunities In general give more specifications as to which procedures to follow in deciding to serve an account and at which conditions SWOT

  Strengths: develop long-term relationship with customers, adding value to both businesses

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through customisation of offerings

  Weaknesses: need for optimisation in providing such kind of customised customised “consultant” service. In

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fact sales people are used by the customers to solve any problem they may have. Also, there is a need to prioritise accounts: skip that and you’ll lose business

 

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