Differentiation strategy is a means to make products have a strong competitive advantage. It can be different on the appearance, functions, software, and after sale service. The only one purpose of differentiation is to keep customers and attract more clients. Differentiation products usually are the most important factor to make a company earn profits because people usually like the products that are unique and useful. Considered with the products of HP, it produces a lot of desktop computer, but other companies such as Lenovo and Dell also have the same products for the same functions. HP supplies online music service, displayer, and a very limited number of mobile products, etc. However, ...view middle of the document...
Focus strategy consists of two advantages. First, it can make HP focus on the products that have competitive advantages, and make the products evolution. It will not spend money on cellphone or tablet that other competitors have been researching for several years. All the resource should be utilized on the products that HP has competitive advantages, and then the products would have a chance to make more revenues. The way is the same as what IBM has done. (CARSTEN, 2014) IBM gave up the business like notebook and desktop because the two businesses are not what it wants to focus on the future. The result shows IBM had a correct decision and it still operates stably. Second, when all of the resources are utilized on the limited products, the products could be developed faster and finally extend the business to relative products. There are many companies that are only focus on one or a few products, but they still very successful.
Alliance strategy makes a company have more resources to utilize on developing products. Many companies use long-term investment on equity, contractual agreement, or joint venture to build its alliance system and control the companies have advantages. Usually, companies would share their patents that help each other in the alliance avoid litigation by other competitors. Also, alliance makes companies that are in the same alliance can share their resources and technology and quick to enter a market and keep the advantages in the field. Of course, companies also can help investors earn profits that are not operational incomes. HP is located in a lonely condition now. It only has a few alliance relationships with other companies such as the corporation with Canon in the printer field. Also, it does not get a lot of resources to research and design by itself. Alliance relationship is a key point nowadays because designing products are more and more complex. No companies can make everything by itself. Therefore, build an alliance is one of the strategies that it has to do. However, a disadvantage is that HP cannot hold all the key technology.
Differentiation, focus, and alliance strategies depend on each other. HP needs Alliance strategies to increase resources support as much as possible, and then use the resources to spend on a few products. Finally, resources make the products have unique features and have strong competition in the market. In the three strategies, we mentioned above, the first step to implement is focus strategy. The strategy could include focus hardware products on desktop computer and printer, focus on online software, and focus on business and emerging market.
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