Hp Dominating in the Printer Industry

4248 Words17 Pages
HEWLETT PACKARD: CONTINUING DOMINANCE IN THE PRINTER INDUSTRY 2 1. EXECUTIVE SUMMARY By the 2006, Americans will be printing 1.8 trillion pages and spending $15 billion a year on ink and toner. Printers are one of the most important complements to the PC, needed by users both at home and in the office to transfer any electronic document onto paper. Since the first dot-matrix printer was introduced into the market in the early 1980s, printer technology has rapidly evolved to become machines that are increasingly efficient in producing sophisticated looking documents both in color and black and white. Hewlett Packard is a global leader in the industry of home and office printing. Even after merging with Compaq in 2002, HP’s Imaging and Printing group accounts for about 30% of the companies revenues and is markedly the most profitable division with earnings 1.4 times that of the company as a whole. Recently HP has faced new challenges with the entry of Dell and the surge in inkjet cartridge refill kits. This paper explores the challenges that HP faces in maintaining its dominance in the printer industry with respect to the competitive landscape and its current business strategy. 2. BACKGROUND ON HEWLETT PACKARD HP was founded in 1939 by Bill Hewlett and Dave Packard. The company has its roots in the electronics, microwave, and radio industries. World War II government contracts enabled the business to grow into a million dollar company by 1944. By the 1960s, HP had diversified into personal computing, starting with programmable calculators in 1972, and eventually entering the desktop market in 1980. HP first entered the printer industry in 1984 with the introduction of the first thermal inkjet printer and print cartridge. HP’s ThinkJet printer was the first low-cost, mass-produced product that truly enabled a disposable inkjet cartridge that could be used in

More about Hp Dominating in the Printer Industry

Open Document