Hp Enterprise Group In 2015: Igniting Organizational Transformation Harvard Case Solution & Analysis

Hp Enterprise Group In 2015: Igniting Organizational Transformation Case Study Solution

Legal factors

There are numerous legal framework that can influence the operations of the company, which include, the business law framework and the employment law framework that impose such condition that may increase the cost of the company. For instance, the wages act for employees may increase the salary expense of the company. Moreover, other environmental regulation may restrict the company to expand its business and data, due to the privacy laws that the company has to comply with, in order to operate in the country.

Porter Five Force Analysis

Threats of new entrants

The threat of new entrants is high for the company, because of  high cost structure and an inefficient pricing strategy. Moreover, the company delays in making the decision related to the operation, which causes it to take more time in introducing new products and services in the market.The company is unsuccessful in maintaining the brand equity, so there are higher chances of customers to switch to other companies’ products or services.

Threats of substitute product and services

The threat of substitute product and services is high, because of the presence of other alternatives of the same product in the market. One of the main reason behind high rate of threat of substitute for the company is that the company has many competitors in the market and the company is not able to manage the large portfolio of the products and their pricing, which  may decrease the customers; loyalty, and the customer may switch to the competitors’ products.

Rivalry among existing firms

The rivalry among competitors is high, because now the company has split into two corporates, with each of them focusing on their respective products, so there are chances for competition of the single company with other existing firms that produce the same products. Moreover, there are many firms in the market that are providing the same product and services such as, IBM, DEL and etc., therefore, the company faces  high rivalry in the industry.

Bargaining power of suppliers

The bargaining power of supplier is low, as the company offers its products in various regions, so it has not made any contractual agreements with its suppliers. Moreover, the cost of switching the product of the company to another is low due to its pricing strategies and lack of product differentiation. Hence, the bargaining power of suppliers is low for the company.

Bargaining power of buyers

The bargaining power of buyers for the company is high, because there are too many competitors who are producing the same product and offering the same services. Hence, the cost of switching is low, and the market has the high price sensitivity, so the bargaining power of the company is high. The company can lower the bargaining power of buyers by diversifying its clients or by expanding its market into new regions. (case 48, 2015)

Results of separation

Improves operations of the company

The separation of the companies has brought  positive rsults to the business. The company has created two leading companies with robust financial and operational backgrounds,which enables it to focus on the expansion of its business by focusing on the area of improvements and customers’ needs.

Improves cost structure of the company

Both the companies can identify their own cost structures, and can improve their costing strategies according to the products and services, which allows them to focus on various expansion opportunity in order to have sustainable growth of the business.

 Provides Expansion opportunities

The division of the parent company into two companies provides various investment opportunities with proper capital allocation. The business will be in a better position, and would attract larger number of investors, which could help in the expansion of the business in future.Moreover, the introduction of two corporates allow them to make their decisions at faster pace, and introduce new products according to the changing needs of the customers. (caseism.com, 2019)

Recommendation

The company has taken a great step of separating the parent company into two distinct companies. I would recommend that for future gowth, the company should sustain the performance by analyzing its performance on monthly basis. Moreover, the company can set various standards and make flexible budgets for maintaining its cost structure.The company should look forward for the expansion in untapped markets. As customers’ needs are changing according to the development and advancement of new technology, so the Company should focus on introducing new products, and should invest in new technology and research and development sector to get updated market knowledge.

Conclusion

In conclusion, HP enterprise has the potential to expand its business. The separation of the two company create the positive impact on business. The two companies has operating efficiently and expanding its business by introducing the new product and increase customer base. The company had achieved its objective but for the future challenges company need to penetrate its markets so as, it can attract the large number of customer and compete its competitors in future.

Appendix

Appendix 1: SWOT analysis

Appendix 2: PESTEL analysis

 Appendix 3: Porters five forces

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