Analysis of Economic Policies of HP Inc. Paper Example

Global Business Economics and Finance

Financial decisions and plans determine the success of every company in the world. The marketing strategies and interventions applied by a company related to the level of business success attained from the operations (Aguilera, Ripple & Aguilera, 2014). HP Company is selected for analysis because of its ability to use different marketing approaches in various countries in the world. HP is an example of a multinational computer company with many branches in all parts of the world. HP was founded in 1939 by two technological experts, William Hewlett, and David Packard. Hewett and Packard graduated from Stanford University with a degree in electrical engineering. Hewlett-Packard Company was split into two in 2015, that is, Hewlett Packard Enterprise and HP Inc. HP Inc. deals with the manufacture of computers, laptops, and software.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

A Brief Description of HP Inc. and its Products

HP Inc. is a technology company that was incorporated on 11th February 1998 in the United States of America. The company produces technological products that include desktops, laptops, software, and internet services. the services offered by the HP Company are important in providing solution services, small- and medium-sized businesses, individual consumers, large enterprises. The HP Company also provide crucial services and products used in government and health offices. HP Inc. operates in access devices like personal computing product, printing, imaging devices, and other related services and solution in the technology sector. Additionally, the market segments of applied by HP Inc. in United States and India involves Corporate Investments and Personal Systems. the segments on the personal systems deal with products that include personal computers (PCs), workstations, consumer tablets, thin clients, displays, software and other related services and solutions. The printing segment deals with commercial and consumer printing hardware, media, supplies, services and solutions, and scanning devices. The corporate investments undertaken by the HP Inc. include the segments like projects on the business incubation and HP Labs.

The products operated by HP Inc. in United States of America and India include both consumer and commercial PCs, mobility devices, and commercial tablets. All these products are predominately dependent on the Microsoft Windows and processors from Intel Corporation and Micro Devices. Consumer PCs operated by the HP Company in United States of America and India include HP spectre. HP Pavilion, HP chrome book, HP hybrids, HP Envy, an all-in-one desktop. HP competes with other computer companies like Toshiba, Lenovo, Dell Inc., Acer Inc. Apple Inc., and Samsung Electronics on the sale of electrical devices especially in America (Assemi, 2018). HP enjoys a lot of privileges is provided by the Indian markets because other companies have not yet established strong marketing zones in the country. HP Company also operates in printing products that focus on commercial markets and imaging solutions. The printing segment produced by the company includes Page Wide printers, LaserJet, Inkjet and commercial printers, and commercial hardware.

Market Structure of HP Inc. in United States and India

HP Inc. has different market structures in different countries due to the nature of competitions and the levels of economic growth in such nations. Imperfect competitions are common in the world with the developed companies enjoying a competitive advantage over the less developed ones. The market structure of the HP Inc. applied in America is Oligopoly because of the existence of other stable electronic and technological companies like Lenovo, Dell, Cisco, Toshiba, and Acer in the country (Burdick & Chu, 2000). In this case, Oligopoly is a type of imperfects competition in which a few companies are involved in the marketing of their products. The competition is described to be oligopoly when the number of sellers ranges from two to ten in the market. Oligopoly also exists when the few companies sell homogenous products. In this case, HP Inc. competes with other companies producing similar products in the country.

Some of the giant multinational competitors of HP Inc. in United States include Lenovo, Dell, Acer, Apple Inc., Samsung, and ASUS (Dossani & Kenney, 2009). The tough competition from these developed companies drives HP Inc. towards establishing a set of marketing strategies in order to achieve its mission and business objectives. One of the effective marketing strategies is prodding products with quality features that have never been discovered by any other company (Heracleous, 2013). This strategy is a typical characteristic of oligopoly competition because the companies use different approaches in advertisement and marketing of their products without interfering with the activities of other companies; therefore, avoiding exploitation of the developing organizations. Another marketing strategy applied by HP Inc. is the B2M multichannel strategy. B2M is also an innovative marketing strategy that involves the creation of other companies under different brand names. Silicon Valley boom is one of the greatest companies that have emerged from the innovative nature of the HP Inc. creation of new companies increases the market share of the company; therefore, gaining, more revenues (Amui et al., 2017).

Lastly, HP Inc. applies the strategy of corporate leadership capability to promote its operations and innovative nature. Good corporate leadership is one of the important business interventions towards achieving the desired outcomes. HP focuses at developing leaders at all levels to attain the expected business outcomes, exemplify their values them to growth, and retain their esteemed customers.

The above chart provides succinct information on the market structure of HP based the sale of Personal Computers in America. The development of new companies with different brand names will help in increasing the market share of HP Inc. in terms of the percentage of revenue (Brookhouser, 2018).

On the other hand, the market structure of HP Inc. in India is Monopolistic because a large number of companies compete in the market but the prices of the products are determined by the developed organizations like Cisco, Lenovo and HP Inc. (Thompson et al., 2013). the leading companies do not dominate in market places but the quality of their products gives them some competitive advantages over other organizations. In this monopolistic market structure, HP Inc. use applies product differentiation approach as one of the marketing strategies to compete favorably with other established computer companies in India. HP Inc. also competes with its rivals for quality, price, and marketing of their products. The quality of HP's products is designed to ensure reliability, ease of access, and ensure customer satisfaction in service delivery (Eckhause, Hughes, & Gabriel, 2009). The prices of the products form a downward sloping curve based on market demands. Production promotion is one of the advertisement strategy applied by HP Inc. in India to improve its market share.

The pie chart shown above provides insight if the market structure of HP Inc. based on 2018 market shares of Computer companies in India. It is observed that HP Inc. enjoys a competitive advantage in the Indian markets due to the application of the appropriate marketing strategies.

A comparative analysis of all major macroeconomic indicators

GDP Growth Rate

The American population has been considered the main consumer of the products manufactured in the country. American consumers have also contributed a lot in the global economy, accounting to more than 15 percent of the GDP in the world. The American GDP increased tremendously when President Obama ascended to power. The increases in the GDP rates resulted due to the ability of Obama to incorporate effective economic policies in the country (Dunning, 2015). The government desire to improve its security system increased the sales of HP Inc., therefore, improving business success.

On the other hand, the Indian GDP has been influenced the advancements in both the agricultural and industrial sectors. The significant growth occurred during the first quarter of 2016. Industrial and agricultural growth contributes to an increase in the sale of technological devices because effective developments include the incorporation of technological advancements. Some of the sectors that have registered rapid growth include the transport and communication sectors (Wiersema & Bowen, 2008). The industrial sector registered loss over the 10 years due to stiff competition from Chinese and Japanese companies. The agricultural sector also depreciated in its operations from 2011 to 2017. The poor performances in the agricultural sector affected the Indian GDP. Services like transport, technological, and communication services registered a higher growth percentage in the country over the 10 years (Sisk, 2013). The reduction in the GDP percentage affected the purchase and market share of the HP Inc. to avoid the negative impacts of the reduced GDP rate on the economic activities of the company, HP Inc. applied appropriate marketing strategies like product promotion and design...