HP is a multinational corporation that operates in the computer industry providing different goods and services to the global market. While the compute deals in the manufacture of hardware goods such as computers, it also deals in the software part that involves networking. Under this networking sector that was established in 1985, the firm has been involved in a series of innovation. The firm aims at providing the best innovations that can solve key issues affecting the changing business industry across the globe. In order to attain this, the firm has undertaken measures to incorporate environmental sustainability measures. This paper discusses the effectiveness of HP’s computer networking from a strategic point of view to the structural point of view.
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Effectiveness of HP’s Computer Networking Business: Strategic Management
According to HP Networking (13), HP is one of the dominant firms in the networking sector because it has capitalized on a networking innovation to create a competitive edge over its competitors. The firm has been able to achieve excellence in networking because it focuses on innovation as the most important strategy. Due to innovation, HP has been able to develop best networking solutions such as the E-series that are manufactured under the ASIC power series. The other is the ProCurve manager that is user friendly and manageable by all users. Strategically, HP uses the game theory to analyze the reaction of its competitors regarding the manufacture of a new networking product. Under this strategy, the firm capitalizes on the first mover advantage to be the first to develop efficient networking solutions and sell in the market.
In addition to these strategies, HP utilizes other strategic management techniques such as the Lean manufacturing strategies (Lean six sigma) and the marketing strategies. While lean six sigma ensures quality in the manufacturing process, marketing strategies ensure that the market is aware of the firm’s networking products. It has marketed its products online together with allowing online purchases and deliveries.
Effectiveness of HP’s Computer Networking Business: Structural Management
The effectiveness of HP networking business could also be analyzed using the firm’s structure. HP is characterized by a mechanistic organizational structure that has its management centralized in one location. The mechanistic structure is necessary for HP given its large size. With such a structure, the firm is highly specialized with the networking and other section being allowed to manage internal affairs. There is a clear chain of command that is characterized with a narrow span of control. The centralization of the organization’s management is significant because it increases standardization of manufacturing tasks, and establishment of a good working culture.
To the good organizational structure, there is speedier decision making process in the firm with the employees such as the sales representative on the ground having a clear chain of command on who to report to regarding the sale of the products or in cases of inquiries and issues. The organizational structure can be attributed to the good performance of the networking section of HP since enhances completion of various activities, setting of goals and ensuring efficiency in the innovation process. As noted by Chama (9), high efficiency and effectiveness go hand in hand and they ensure attainment of set objectives.
Thriving of ProCurve under PSG
The ProCurve networking recently expanded its regional cover to include regions such as Europe, Middle East and Africa with the product offering the ability to meet many specific needs of customer. The ProCurve network and securities channel is designed by the firm to benefit HP, its partners and consumers. The program is expanding and it is vital that it separates form the initial TSG. The autonomy of the networking will come with its management and sales representatives together with experts that develop the system. This will reduce the bureaucracy undertaken to reach the right person and relay information on consumer needs and issues. In addition, autonomy of ProCurve will help the networking section to specialize and therefore increase its efficiency and effectiveness, which is closely related to increased revenue. Given that the level of competition in the industry is high, autonomy of ProCurve will create a competitive edge for the firm. On the contrary, the independence of ProCurve will mean that the section will no longer receive much support form TSG as it has been before, but will have to ensure that it is profitable to sustain itself.
Centralization and manufacturing of products from a single location is not cost effective for HP. The firm needs to minimize costs through outsourcing and off-shoring of its vital services to various countries that can offer services cheaply. U.S. is capital intensive while other countries such as India and China are labor intensive. Outsourcing will reduce labor costs while enabling the firm to continue with its innovativeness in networking. The internet has revolutionized business and there are many system users online. HP should capitalize on electronic marketing of its networking products and allow consumers to purchase online. In cases where the products can be installed online, the firm should minimize its costs by doing it online. The firm could apply selective pricing where prices for the firm’s products are higher in some regions but lower in others, as long as the firm meets its minimum manufacturing costs.
Chama, Kaunda. “Catering for a R24bn Market.” Business and Technology Insight for Solution Providers. 2009. Web.
HP Networking. “Energy Efficient Networking.” 2013. Web.