HEWLETT PACKARD COMPANY IN VIETNAM Harvard Case Solution & Analysis

Hewlett packard Company in vietnam Case Study Analysis

Introduction

The Hewlett Packard (HP) is a renowned American based company operating in the manufacturing, supply, marketing and distribution of peripherals and computers. It was established in 1939 by William Hewlett and David Packard. The company was ranked by Fortune magazine as the second most admired companies in the U.S. The corporate strategy of the organization comprised providing premium quality products at justifiable prices to its customers and creating positive work environment.

The company has a huge geographical reach, product diversification, strong brand reputation and employed premium pricing strategy. In addition, the company had specialized knowledge and extensive experience in operating in South East Asian countries. In 1995, the organization wanted to diversify its operations by entering into Vietnam IT industry therefore, in order to assess the viability of the company’s decision, the external and internal environment of the IT industry in Vietnam is analyzed in this report.

Problem statement

In order to assess the viability of the company’s decision to enter the Vietnam Industry, the marketing director at HP, John Peter needed to evaluate the current external and internal environment of the Vietnam IT industry. In addition, considering high growth potential in IT industry in Vietnam and increasing competition, the organization needed to enter the market quickly but was concerned about the appropriate market entry option.

SWOT framework

The SWOT framework is used to analyze the internal business environment of HP.

Strengths:

1. HP has extensive experience and specialized knowledge in entering into developing Asian markets such as China, Indonesia, Philippines therefore, are able to understand the social cultural and political environment of Vietnam. This will aid the organization in implementing effective strategies.
2. As Guanxi is animportant factor of operating businesses in Vietnam, HP will easily get government approval for conducting business in the region as it has networks and connections with a wide group of investors as a result of being geographically dispersed.
3. The organization’s core objectives comprises ensuring maximum customer satisfactions, creating customer value, promoting innovation, promoting positive work environment and producing highly skilled employees. 

Weaknesses:

1. Most of the population of Vietnam is rural and lacks knowledge and skills about computer based products therefore, skilled labor will be difficult to find in order to bring awareness among people about HP’s products.
2. The autocrat political system and stringent regulations regarding land right and administration of foreign direct investment in Vietnam might make operating business in the region difficult.
3. The distribution channels and port facilities at the region are underdeveloped which will make the trading and distribution process difficult for the company.
4. HP employs premium pricing strategy however, considering the low income of Vietnamese, the organization’s strategy to expand in the market might fail.

Opportunities:

1. In order to ensure success of the IT-2000 program, government requires large and experienced IT companies. As HP is the second largest player in the IT industry, it is likely that the government will require its support.
2. As there are fewer competitors in the industry, therefore entering the market will be easier. On the other hand, the organization can establish its own manufacturing base in Vietnam as the labor rates are significantly low in the region.
3. The telecommunication industry in Vietnam was an emerging market, therefore entering the market was easy due to less competitors.
4. 75 percent of the total population of Vietnam is below 35 years of age whose usage of computer based products is high, this indicates that Vietnam will be an ideal market for expansion.(Sammut-Bonnici, 2015)

Threats:

1. HP experiences severe competition from IBM and DEC which are key players in IT industry. Both the competitors are planning to expand its operations to IT industry in Vietnam. Therefore, considering these competitors had more distributors in Vietnam as compared to HP, there is chance that HP might fail to attract customers in Vietnam.
2. There is chance that HP might not gain government’s approval to operate in Vietnam as result of autocrat political systems and historical political conflicts with the country. (wu, 2012)

PESTLE framework

The PESTLE framework analyze the external environment of Vietnam which includes evaluation of the country’s history and Geography

Political:

Vietnam had an autocratic political environment i.e. it is ruled by one dominant party which has the power to change the rules and regulations. In addition, in past various debates and conflicts were witnessed due to closed political system and emerging economy. Similarly, the U.S was involved in a war with Vietnam in 1968, considering, the autocrat political system in the region, the government might refuse to permit the organization to operate in Vietnam.........................

This is just a sample partical work. Please place the order on the website to get your own originally done case solution.

Related Case Solutions & Analyses:

Taikang Insurance: Standing Out in Chinas Crowded Insurance Market Ultimate Fighting Championship: License to Operate (B) Transformation of Thomson Finder Minder & Grinder: The Charges and Rebuttal Lark International Entertainment Video NHL–1998: The Coolest Game in Nagano Ethics for Indigenous Australian- Sydney Consultancy HEATHCARE AND BELIEFS Inditex Angus Cartwright IV