Porter’s Five Forces Analysis of Hewlett Packard (HP)

Hewlett-Packard is categorized in the Diversified Computer Systems industry of the Technology sector. Within the Computer Systems industry Hewlett-Packard has many high profile competitors such as: Canon, Dell, IBM, Apple, and Cisco Systems. The Computer Systems industry contains a large range of products including but not limited to: desktop computers, personal notebooks, printers, scanners, cameras, and different software programs. Most companies, such as Dell, Apple or Gateway, tend to be limited to a small product range. Compared to other industry competitors, Hewlett-Packard has a wide variety of consumer products. This gives HP a competitive advantage in the consumer market due to their brand name coverage in the technology industry. Hewlett-Packard offers desktops, notebooks, handhelds (pocket PC’s), monitors, home networking, televisions, digital photography, printers and printing supplies. Hewlett-Packard does not specialize in just one product line. With new technology innovations, some of their previously lesser known lines have grown to be Continue reading

Case Study of Nike: Building a Global Brand Image

Brand History The idea of Nike began way back in the 1950s. A track coach by the name of Bill Bowerman was at the University of Oregon training his team. Bill was always looking for a competitive edge for his runners, like most of us today look for any advantage we can get. Bill said he tried using different shoes for his runners as well as trying other things to try and make his athletes better. Bill tried to contact the shoes manufactures in attempt to try out his ideas for running shoes. This however failed. In 1955 a track runner by the name of Phil Knight enrolled at Oregon. Phil was on the track team under Bill. Phil graduated from Oregon and acquired his MBA from Stanford University. Phil went on to write a paper that talked about how quality shoes could be made over in Japan and they Continue reading

Hawtreys Monetary Theory of Trade Cycles

The British economist Ralph G. Hawtrey regards trade cycle as a purely monetary phenomenon. According to him, non-monetary factors like wars, earthquakes, strikes and crop failures may cause partial and temporary depression in particular sectors of an economy. However, these non-monetary factors cannot cause full and permanent depression involving general unemployment of the factors of production in a trade cycle. On the other hand, changes in the flow of money are the exclusive and sufficient cause of changes in trade cycle. In Hawtrey’s opinion, the basic cause of trade cycle is the expansion and contraction of money in a country. According to Hawtrey, changes in the volume of money are brought about by changes in the rate of interest. For instance, if banks reduce their rate of interest, producers and traders will be induced to borrow more from banks so as to expand their business. Borrowing from banks will lead Continue reading

Brand Attributes – Meaning, Components and Importance

In order to understand the meaning and importance of brand attributes, and their contribution to the creation of memorable and attractive brands, it is important to understand the significant difference between products and brands. A product is purely a physical thing, defined by physical attributes. For example, cola is a physical product made from a combination of caramel, caffeine, sugar, carbonated water and other colors and flavors. In contrast, a brand is a defined image and name associated with a specific firm’s products, and used to differentiate these products from those of competitors. As a result, a brand effectively represents the promise of quality for consumers, and the promise that a product will meet certain standards and expectations. At the same time, a brand can also represent a conceptualization of the values that a product espouses, hence how these values can differentiate one product from another, and influence a consumer’s Continue reading

Forex Operational Risk Management through Marketing Management

Operating risk in foreign exchange operations can be negotiated ably through marketing management strategies as well. These are: market selection, product strategy, pricing strategy and promotion strategy. Market Selection: Impact of exchange rate fluctuations on operating profit can be dealt through right mix of markets. Major strategic operations for an exporter are the markets in which to sell and the relative marketing support to devote to each market. Marketing management must take into account its economic risk and selectivity, adjust the marketing support, on a nation-by-nation basis, to maximize long-term profit. From the perspective of non-US companies, the strong U.S. dollar is a golden opportunity to gain market share at the expense of their U.S rivals. It is also necessary-to consider the issue of market segmentation within individual countries. A firm that sells differentiated products to more affluent customers may not be harmed as much by foreign currency devaluation. On Continue reading

Indian Depository Receipts (IDRs)

Indian Depository Receipts (IDRs) are transferable securities to be listed on Indian stock exchanges in the form of depository receipts created by a Domestic Depository in India against the underlying equity shares of the issuing company which is incorporated outside India. As per the definition given in the Companies (Issue of Indian Depository Receipts) Rules, 2004, Indian Depository Receipt is an instrument in the form of a Depository Receipt created by the Indian depository in India against the underlying equity shares of the issuing company. In an IDR, foreign companies would issue shares, to an Indian Depository (say National Security Depository Limited — NSDL), which would in turn issue depository receipts to investors in India. The actual shares underlying the IDRs would be held by an Overseas Custodian, which shall authorize the Indian Depository to issue the IDRs. The Indian Depository Receipts would have following features: Overseas Custodian: Foreign bank Continue reading