Strategic Management; Gaining and Sustaining Competitive Advantage at Hewlett Packard

1987 Words Mar 25th, 2008 8 Pages
The key strategic issues facing Hewlett Packard as it seeks to generate and sustain competitive advantage.

The objective of any organisation is to

"Create and sustain long term competitive advantage" get quote

Corporate strategy is central to achieving this through making assumptions of an organisation's external environment, its resources, and formulating a plan of how they should operate. The organisation upon which I have conducted my research: Hewlett Packard (HP), have recently been reported of having

"Some cost and profitability problems" (Analyst-Goldman Sachs 2005)

Added to this has been the threat from competitive rival Dell as their profits and market share grew. Using key frameworks, I will examine and conclude
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Strategic Capability

"Strategic capability is the adequacy and suitability of the resources and competences of an organisation for it to survive and prosper" p117

An organisation needs to be capable of delivering against all odds, the demands and needs of the customer. Unique resources and core competences contribute to the strategic capability of an organisation to do so, and are essential when looking to sustain competitive advantage. (As mentioned, the HP brand is an example of a unique resource.) Competences, in simple terms:

"Enable firms to do things, to create forms of value" antony Beckett paper, uweonline, quote.

Hewlett Packard, despite being successful over a number of years, decided to change the way in which it went about its activities and processes. This move, a result of the impending economic downturn and increasing competition in its aforementioned environment, was proposed in order to bolster the organisation's strategic capability by practicing core competencies that would benefit them and be hard to imitate. HP simplified its structure by:

"Embedding sales and Marketing efforts directly into business units, providing a tighter link with customers. It cuts expenditures by restructuring support functions …..enabling HP to deliver to its full potential"

CEO of Hewlett Packard, had a

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