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Business Model and Strategic Plan, Part I

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Business Model and Strategic Plan, Part I
Connie Berg
BUS/475
September 29, 2014
Dr. Abdel Mahdi Al Husseini

Business Model and Strategic Plan, Part I
In the world of computers, software, and digital devices innovation is the key to having the upper hand. When it comes to staying ahead of the competition Hewlett-Packard Development Company LP has figured out a way to stay at the top. As one of the lead runners in the world of technology Hewlett-Packard has established itself in the global market and continues to advance. They are a large manufacturer of computers and servers, as well as printers and other technology based services. Their share of this market is approximately 24% and as the largest manufacture of computers in the United States, they have 25.5% of the domestic market share (IBISWorld, 2014). For them to continue to stay at the top, this company has to continue to come up with innovative ideas that will get the consumers attention. They have decided to develop their own internet security that will be available on all new Hewlett-Packard computers. This will require the company to establish a new division that will be responsible for the creation, research, implementation, and maintenance of this security software program.
Proposition
In the computer industry there are a number of risks that consumers take every time they log on to the internet. Some of these include identity theft, financial loss, and computer malfunction. With the constant threat to computer users the introduction of security software that is readily available to the buyer of a new computer would help to assure that they are protected right from the start. HP One addresses this with security that comes ready to use right in the computer. This software will automatically update when the system goes on line for the first time so there is no risk while waiting for virus protection software to be installed. Unlike the introductory products that currently come with new computers this will have no initial cost and the annual cost will be minimal. This will also be something that the user can decline if they so choose without any cookies left behind to track them with.
Mission
The mission statement of this new department is “Protect all consumers, all of the way, all of the time for a fast clean computer”. With this mission in mind the researchers for this new product will continue to study all of the security software available to determine if there are any new innovations that can be implemented into HP One to ensure its accuracy and protection. The maintenance segment of this department will in turn monitor and study any new threats and work to protect users from them as quickly as possible. Although this may increase the cost of new Hewlett-Packard computers, customers will be assured of their protection from the start, from a company that has shown that their quality can be trusted. This is a department that will continue to be focused on the customers’ needs as well as what they may want. Therefore there will be extensive training in this department and qualified employees that will be working to protect Hewlett-Packard customers. To do this the department will focus its attention on the leaders in the security software industry, Symantec Corporation (Norton) and McAfee. Combined, these industry leaders hold around 26% of the market because of their longevity and expertise (IBISWorld, 2014). With the focus on them, as well as the independent research and monitoring from Hewlett-Packard technicians they will strive to protect all of their customers.
Vision
The vision of the Hewlett-Packard division that is responsible for the HP One software is to expand this software to include sales to other users. This means that the company would proceed with the idea that all those that use the internet should have quality protection, even if they do not have a Hewlett-Packard computer. With this in mind they are striving to maintain excellence from the start. With this their product will show how well it protects its users with no initial financial risk. The customer that buys a new Hewlett-Packard computer will be able to use the program at no charge for the first year. This will begin to show the users of other security software that HP One can protect them just as well or better on their computers for a reasonable price. However, because this is a Hewlett-Packard software they will make the annual cost for HP One less for those that purchase their computers. This is right in line with one of the company’s primary objectives, customer loyalty. Hewlett-Packard believes “We earn customer respect and loyalty by consistently providing the highest quality and value.” (Hewlett-Packard Development Company, L.P., 2014, p. 1).
Value
The value of this new product is what it can do for customers. The aim to protect all computer users is important to Hewlett-Packard and they take this very seriously. With a quality product that the company stands behind they will put the same quality and attention into the development and maintenance of this software. Other computer companies install secondary trial software that can be purchased if the customer wishes. This product is different, it is ready to use right away and will register with the computer registration. There is no cost for this for the first year for new computers and those that chose to buy this product for their existing computers will get the same quality and value as those who have it preinstalled. The company will sell this at a very competitive price because they want everyone to be safe on the internet. Hewlett-Packard delved into the internet security industry in 1996 with the acquisition of Secureware Inc. This was when they had decided to gain a share of the small business market and they wanted something that would help to keep these businesses secure (Hewlett-Packard. 1996). With the same determination that they put into creating a product that would meet their customers’ needs in small business they have decided to take it one step farther and create their own product in this market that would work for everyone.
Responsibility
Hewlett-Packard prides itself on being a very socially responsible company. The company believes that this is the only way to do business and they created a department, “…corporate, social and environmental responsibility (CSER) program.” (para. 12) to oversee the company’s four functions (Hewlett-Packard and CSER, 2005). The CSER functions are 1) Business practices. 2) Corporate social responsibility. 3) Environment. 4) Privacy. Each of these areas is an important part of their daily responsibilities but the creation of the HP One will address the environment. This is because there are so many discarded computers that are finding their way into the landfills and many of these end up there because of malicious material that finds its way in one’s computer. This security software will help to protect this from happening and reduce some of this toxic waste from ending up discarded. They also work to create upgradable computers so that they will not go out of date and the user can just upgrade to the latest version, as opposed to buying a whole new system. This security software is right in line with CSER’s idea to keep the company socially responsible and to think about the future.
Conclusion
HP One addresses many issues in today’s technological world, but primarily Hewlett-Packard is addressing their customer’s needs. This software will make the buyer of all new Hewlett-Packard computers know that they are free to use any security software they chose but until they decide, they are going to be protected. This makes the process of starting up a new system and logging on to the internet worry free. The department responsible for this new software will be charged with continuing to strive towards a superior product and keep the level of protection at the same quality as the Hewlett-Packard name implies. This quality and excellence will carry over into the security software market for all computers, no matter the brand. With a name like HP One consumers will immediately recognize the Hewlett-Packard name and know that they are getting a product the company stands behind. This department also knows the importance of the company’s social responsibility and if the software is not of the highest quality they will fall short of the idea behind CSER. Hewlett-Packard has always found a way to stay competitive in the computer market and this is no different. With the innovation and creativity of the employees that are in the HP One department they will find this product to be as much of a success as any they have worked towards in the past.

Reference
Hewlett-Packard. (1996). Computer Reseller News, 50. Retrieved from http://search.proquest.com/docview/227509865?accountid=458
Hewlett-Packard and CSER. (2005). Strategic Direction, 21(1), 5-8. Retrieved from http://search.proquest.com/docview/218610147?accountid=458
Hewlett-Packard Development Company, L.P., (2014), Our Corporate Objectives, Retrieved from http://www8.hp.com/us/en/hp-information/about-hp/corporate-objectives.html
IBISWorld, (2014). Hewlett-Packard Development Company LP, Retrieved from http://clients1.ibisworld.com.ezproxy.apollolibrary.com/reports/us/industry/majorcompanies.aspx?entid=740#MP8643
IBISWorld, (2014). Symantec Corporation, Retrieved from http://clients1.ibisworld.com.ezproxy.apollolibrary.com/reports/us/industry/majorcompanies.aspx?entid=1995#MP10097

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