Comparative Analysis: Hewlett Packard Vs. Dell

3431 words - 14 pages

Comparative analysisHewlett-Packard vs. DellSubmitted by:Matala V S Santosh Kumar,Scope and OutlineThe scope of the report is to compare the practices followed in two companies, "Hewlett-Packard" and "Dell Computers", and the reasons for their success. The comparison is done on the basis of structure, technology, culture, fit with the environment.The outline of the report is as follows:Brief introductionOrganization structureTechnology and systemsCultureFit with environmentFuture challenges and opportunitiesConclusionBrief Introduction"Third Wave" organizations, as per Alwin Toffler, are those post-industrialization organizations that bank on technology, digitization and continuous innovation. These organizations revolutionized the way businesses are done and for them innovation is the mantra for survival. So, when I took the task of comparing two organizations, the two companies I could only think of are Hewlett-Packard (HP) and Dell Computers. Both are "Third Wave" companies and are from the same industry, with a slight difference that HP has additional product lines. In this paper, effort has been put to compare the two organizations in terms of organization structure, technology, culture and environmental factors. In most of the cases, the comparisons are drawn between HP group and Dell Computers. Whenever comparisons between HP Computers division and Dell are done, they were explicitly mentioned. Before going further, a brief introduction to the organizations and how they evolved have been laid out in the subsequent paragraphs.Hewlett-Packard was established by Bill Hewlett and David Packard in 1939 in a small garage in Palo Alto, California. Initially they started making "high frequency receivers" and sold it to businesses and military. The innovative instincts of the founders lead the organization to start designing and developing innovative electronic products. Second World War provided an opportunity for the firm in terms of defense contracts and the company's production and product line increased. After Second World War, the company started investing heavily on microwave technology which gave competitive advantage to them. From 1960s the company took the computers division seriously and started investing time and money into it and in 1966, it entered computer segment with its product HP 2100. By mid 1960s, it entered medical equipment market through acquisitions. The flagship product of HP was printer and they entered this segment in 1970s through tie-ups with companies like Canon for technology development. The company entered retail segment in a big way in 1980 and from then maintained a strong distribution and retailer system. It acquired Compaq, another top player in computer industry in 2003 and captured the number one slot in computers market. Dell was the second.Dell Computers was established by Michael Dell in 1984 in Texas, USA. At first Michael Dell used to upgrade the existing systems with components and started selling...

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