Marketing - Hewlett Packard's Home Products Division in Europe
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HewlettPackardsHomeProductsDivisioninEurope.pdf
Harvard Business School 9-501-053 !"#$%&$'()*+(),,,
Professor David J. Arnold and Carin-Isabel Knoop, Executive Director, Global Research Group, prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. This case contains information from two supplements, Hewlett-Packard’s Home Products Division in Europe (C): Lessons from Europe, HBS case no. 399-060 and Hewlett-Packard’s Home Products Division in Europe (D): The Matrix Model, HBS case no. 500-063. The two supplements can be used instead of the case.
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1
Hewlett-Packard's Home Products Division in Europe (1996-2000)
Making money in the [home PC] business is like landing a man on the moon.*
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First Lessons from Europe—1996
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For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
501-053 Hewlett-Packard's Home Products Division in Europe (1996-2000)
2
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Thinking Things Through—1997
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For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
Hewlett-Packard's Home Products Division in Europe (1996-2000) 501-053
3
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Next Product, Next Approach—1998
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For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
501-053 Hewlett-Packard's Home Products Division in Europe (1996-2000)
4
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Twin Objectives—1999
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@206( %$983( '$7$=08081( >5UW6( &C608$66( &/( A2988$;( '932$'( 3298( &/( A"C83'/+( %9'V081( 9 7$.9'3C'$(='"%(32$(A"C83'/(.'0"'03/(%93'0[(9..'"9A2?c((MAA"'7081(3"(20%+(`%9'V$3($83'/(d<96e(8"3 32$(%9f"'(&9''0$'(3"(.'"=039&0;03/+(&C3(%9083$898A$("=(%9'1086("8A$(08(32$(%9'V$3?a((>$($630%93$7(3293 32$(=0[$7(A"636("=($83'/(083"(9(8$<(%9'V$3(<$'$(9..'"[0%93$;/(i*(%0;;0"8+(3"(A"#$'(%9'V$3('$6$9'A2+ 6"%$(;"A9;0^930"8("=(V$/&"9'7(987(6"=3<9'$(X.9'30AC;9';/(2$;.(=0;$6Y+(987(.9AV91081?((L9'1086(<$'$ ;"<$'(3298( 08( 32$(]803$7(K393$6(&$A9C6$("=(%"'$(.'0A$D6$86030#$(%9'V$3(A"87030"86+(2012$'('$390;$' %9'1086+( 987( 9;6"( &$A9C6$( "=( 63'CA3C'9;( =9A3"'6( 6CA2( 96( 2012$'( 69;$6( 39[$6( 987( ;$66( $==0A0$83 3'986."'3930"8(987(6C..;/(A2908(6/63$%6?((@2$(8$3(C803(A"83'0&C30"8(3"(>5(A"C;7(&$(iF,(3"(i*,,(;"<$' 08(ZC'".$(3298(08(32$(]803$7(K393$6+(7$.$87081(C."8(32$(.'0A$(;$#$;(987(7063'0&C30"8(A2988$;?
@<"( 63'93$10A( ".30"86( 3"( &""63( .'"=039&0;03/( <$'$( A"8607$'$7O( ( X*Y( $83$'( 32$( '$10"8W6( ;$66 7$#$;".$7(%9'V$36(3"(1908(.0"8$$'(%9'V$3(629'$(97#98391$m(987(X)Y(7$#$;".(8$<(%9'V$3081(%"7$;6? K.908(.'"#07$7(9(3$63(A96$(="'(32$(=0'63(".30"8?(@'97030"89;;/(9(6.$A09;3/('$390;(%9'V$3+(9(8C%&$'("= ='98A206$7(A29086("==$'$7(32$(A298A$(="'(>5U(3"($[.$'0%$83(<032(32$(A"8=01C'$D3"D"'7$'(%"7$;?((b8
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E(`>5(J'$9V6(32'"C12(]S(*S(J9''0$'(<032(5'$%0C%(bb(5-6+a(Newsbytes+(:$&'C9'/(),+(*ccE? c(K$$(>JK(A96$(8"?(NcHD,,*+(`>$<;$33D59AV9'7(-"?W6(>"%$(5'"7CA36(U0#060"8(XMYO(@".(@2'$$(08(32$(>"%$(5- L9'V$3(&/(*ccH?a
For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
Hewlett-Packard's Home Products Division in Europe (1996-2000) 501-053
5
977030"8+( !"'70A( A"C83'0$6( X$6.$A09;;/( K<$7$8( 987( !"'<9/Y( 987( 32$( !$32$';9876( 9..$9'$7( ;$66 .'0A$D6$86030#$(3298("32$'(%9'V$36(987(<$'$(9;6"(9..9'$83;/(".$8(3"(8$<(&C608$66(%"7$;6(6CA2(96 $%.;"/$$(.C'A296$(.'"1'9%(987(083$'8$3(69;$6?
@2$(6$A"87(".30"8(<96(C6081(8$<(%9'V$3081(%"7$;6(987(9..'"9A2$6(<032(<20A2(>5+(;0V$ "32$'( %9f"'( A"%.C3$'( &'9876+( <96( $[.$'0%$83081( X"=3$8( 32'"C12( %9'V$3081( .9'38$'620.6Y?( @2$6$ 08A;C7$7( 6$;;081( 29'7<9'$( 93( 9( '$7CA$7( .'0A$( 08( A"%&08930"8( <032( 9( A"83'9A3( <20A2( 1$8$'93$7 '$#$8C$6(#09(9(6C&6A'0.30"8(3"("8;08$(6$'#0A$6*,m(987(.'$D08639;;081(9(."'39;("8(32$(5-+(9AA$66$7(&/(9 6081;$(A;$9';/(;9&$;$7(V$/+(08('$3C'8(="'(9('"/9;3/(='"%(32$(."'39;("<8$'($#$'/(30%$(32$(C6$'(C6$7(32$ V$/?((KCA2(8$<(083$1'93$7(&C608$66(%"7$;6(<$'$(08(;08$(<032(32$(63'93$1/(="'(>5(&$081(9'30AC;93$7(&/ 8$<(-Z_(-9';/(:0"'089Q.C33081(>5(93(`32$( 083$'6$A30"8("=($D6$'#0A$6(<'9..$7(9'"C87(.'"7CA36+ 9..;098A$6+(987(08='963'CA3C'$?a**
J/(%07D*ccc+(6C&6398309;(%9'V$3(629'$(19086(297(&$$8(9A20$#$7(08(:'98A$+(<2$'$(59#0;0"8 <96(320'7(08(32$(%9'V$3(<032(9(*)\(%9'V$3(629'$?(5'"1'$66(08(32$(]803$7(S0817"%(297(&$$8(6;"<$'+ 9;32"C12(>5U(<96(32$(3".(6$;;081(&'987(08(3<"('$390;$'6?((K$$(Exhibit 1(="'(&'987(."6030"86(08(*ccc?
Getting it Right—2000
b8(K$.3$%&$'(),,,+(>5U(%9891$'6(=$;3(3293(32$/(`=089;;/(1"3(03('0123(d08(ZC'".$e?a((LCA2(297 A2981$7?((Z%0;0"(T20;9'70(3""V("#$'(='"%(-2$88$#$9C("8(g98C9'/(*+(),,,?(@2$(A"8A$.3("=('$10"89; "'1980^930"8+(<20A2(>5UDZ(297(.0"8$$'$7+(<96(8"<(&$081(97".3$7(9A'"66(32$(A"%.98/?*)((b8(%07D ),,,(>5(<96("'1980^$7(08(="C'(6$A3"'6+(3<"(.'"7CA3D=9A081("'1980^930"86(X9;;(A"%.C3$'(.'"7CA36(987 9;;(0%9108081(.'"7CA36Y(987(3<"(AC63"%$'D=9A081("8$6(XJC608$66(987(-"86C%$'Y?((b8(),,,+(>5U(987 32$(59#0;0"8(<$'$(6C&6C%$7(083"(9(;9'1$'("'1980^930"8(A9;;$7(-"86C%$'(-"%.C3081(k(M..;098A$6+ <20A2(9;6"(08A;C7$7(32$(.9;%3".+(32$(A9;AC;93"'(&C608$66+(.$'6"89;(63"'91$(9..;098A$6+(-U(<'03$'6+ 987(b83$'8$3(6$'#0A$6?( (T20;9'70(<96(036(1$8$'9;(%9891$'(="'(ZC'".$+(L077;$(Z963(987(M='0A9?(@2$ <"';7<07$( "'1980^930"8( %97$( .'"7CA3( 9#90;9&;$( 987( ;$3( '$10"89;( "'1980^930"86( 7$A07$( "8( 32$ A"%&08930"8("=(3$A28";"1/(987(%9'V$3081(63'93$1/(;"A9;(%9'V$36(<9''983$7?((j$10"89;("'1980^930"86 297(32$0'("<8(5kh?((!"3$7(T20;9'70O
@2$('$10"89;("'1980^930"8(39V$6(A9'$("=(.'"7CA3(%9'V$3081+(=0898A$+(&C608$66 7$#$;".%$83+($3A?+(9;;(32$(639879'7(320816(/"C(<"C;7($[.$A3(9('$10"89;("'1980^930"8 3"( 7"DD;"A9;( .$".;$( 6.$9V( 32$( 69%$( ;981C91$( 987( 29#$( 32$( 69%$( AC;3C'$( 96( 32$ AC63"%$'6(987(32$(.$".;$(08(32$(A2988$;6?((@293(2$;.6?((_C'(6C.."'3(1'"C.(7$#06$6 987(0%.;$%$836(.;986(3"(6C.."'3(.'"7CA36($#$'/<2$'$(08(ZC'".$?((b3(06(2".$7(3293 32$(8$<( "'1980^930"8( <0;;( 08A'$96$( 6.$$7(987(9AA"C839&0;03/?( K"%$30%$6( 6.$$7( 06 %"'$(0%."'3983(3298(A"63?
T20;9'70(=$;3(3293(03(<96(9;6"(`6"%$30%$6(%"'$(0%."'3983(3"(&$(BC0AV(3298('0123a(987(3293(32$ 8$<("'1980^930"8(<"C;7(A"''$A3(="'(.963(%0639V$6O
M3(32$("C36$3(>5U(<96(10#$8(3"39;(9C3"8"%/?(K"(32$/(="AC6$7("8(%9V081(32$ &$63( &C608$66( %"7$;( ="'( 32$( '$390;( %9'V$3( 08( 32$( ]?K?( ( @293( %97$( 03( 29'7$'( 3" 083$'8930"89;0^$?((R$(32"C123(<$(A"C;7(%9V$(<"';7<07$(&C608$66(7$A060"86(A$83'9;;/ 987(3293(.'"#$7(70==0AC;3?((-"C83$'.9'36(7"(8"3(6$$(C6(96(&$081(9&;$(3"(%"#$(=963?(@2$
((((((((((((((((((((((((((((((((((((((((((((((((((((((((((
*,(:"'($[9%.;$+(9('$A$83(.'"1'9%(08(:'98A$("==$'$7(A"86C%$'6(9(::)+,,,(706A"C83("==(9(5-('$390;081(93(::G+c,,(08 '$3C'8(="'(9(3<"D/$9'(6C&6A'0.30"8(3"(98(b83$'8$3(K$'#0A$(5'"#07$'(XbK5Y(93(::*)G(.$'(%"832?((@206(.'"1'9%(<96 "==$'$7(#09(3$;$.2"8$(69;$6? **(K.$$A2(7$;0#$'$7(93(32$(-_LUZn(3'97$(62"<+(h96(o$196+(!"#$%&$'(*F+(*ccc? *)(>5(C6$7(3"(%9891$(036(&C608$66(96(9(A"%&08930"8("=(.'"7CA3(A$83'0A(&C608$66$6(<032(.$".;$(<032(<"';7<07$ '$6."860&0;03/(="'(%9891081(70==$'$83(5kh6?
For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
501-053 Hewlett-Packard's Home Products Division in Europe (1996-2000)
6
=C879%$839;(."083(06(3293(08(ZC'".$(32$(%9'V$3(06(7"%0893$7(&/(;"A9;(.;9/$'6+(6"(32$ 986<$'(06(A"%081(='"%(96V081(/"C'6$;=(32$(=";;"<081(BC$630"8Q<2/(62"C;7(.$".;$ &C/(98(>5(0863$97("=(8"(&'987(2"%$(5-l((@$A28";"1/l((!"?((:963$'(%9A208$l((!"? R293(<$(29#$(08607$l((!"?((K"(<2/(<"C;7(9(AC63"%$'(#9;C$(>5(0863$97("=(6"%$&"7/ $;6$l((@2$(=0'63(06(;""V(987(=$$;(08(32$(.'"7CA3(6$86$QBC9;03/(987(1""7(#9;C$(="'(<293 b(9%(&C/081?((@2$(6$A"87(06(AC63"%$'(A9'$+(>5(06(V8"<8(="'($[A$;;$8A$(08(7$9;081 <032(AC63"%$'6?((@20'7+(32$(.'"7CA3(06(".30%0^$7(3"(10#$(32$(&$63(."660&;$(b83$'8$3 $[.$'0$8A$?((R$(<983(.$".;$(3"(1"(32'"C12(32$(b83$'8$3($[.$'0$8A$m(08(%98/(A96$6(<$ 9'$(630;;(32$(=0'63(A"%.C3$'(.$".;$(&C/?((@2$6$(9'$(32'$$(9'$96(<$(A98(977(#9;C$(3293 9'$(A"86063$83(<032(>5(#9;C$6(3293($A2"(<032(AC63"%$'6?(5$".;$(<2"(%9V$(32$('$63 32$0'(A"'$(A"%.$3$8A0$6(62"C;7(7"(9;;(32$('$63?((:"'($[9%.;$+(<2/(<$'$(<$(7"081(32$ .2/60A9;('$.90'("=(&'$9V6l( (@2$(.2/60A9;(%98C=9A3C'081l( (R$(A98( ;$3("32$'(.$".;$ ="AC6("8(3293?
_8(32$(63'$8132("=(3206('$9;0^930"8+(>5U(<96(.;988081(3"('$;9C8A2(08(T$'%98/("8(_A3"&$'(*N 987(%"#081(083"(.'$33/(%CA2($#$'/(A"C83'/(08(R$63$'8(ZC'".$(08(32$(8$[3(*)(%"8326?((`R$(<0;;(&$ C6081(&;$87$7(A2988$;6Q<$(<0;;(&$(<2$'$(AC63"%$'6(<983(3"(&C/m('$390;(06(630;;(&/(=9'(7"%08983(.;9A$ <2$'$(.$".;$(&C/?a((T20;9'70(<96($[.$A3081(3"(6$;;(*F,+,,,(3"(),,+,,,(C8036(08(T$'%98/(08(32$(8$[3(*) %"8326?((`R$(9'$(90%081(93(*,\(.;C6(%9'V$3(629'$(08(3<"(/$9'6(08(9(%9'V$3("=(N(%0;;0"8(C8036(&/ ),,)+a(T20;9'70($[.;908$7?
European Market Structure
@2$(ZC'".$98(2"%$(5-(%9'V$3(%$98<20;$(<96(630;;(1'"<081(93(*F\D*I\(.$'(/$9'+(32"C12 <032"C3(.'$70A39&;$(6$96"89;03/(="'(%"63(%98C=9A3C'$'6?(-"%.$3030"8('$%908$7(63'"81(987(#";930;$ 9A'"66(ZC'".$(X6$$(Exhibits 2 987 3Y?(5'0A$(."0836(A"8308C$7(3"(=9;;?(>5UW6(.'0A$6(7$A'$96$7(08(;08$ <032(32$("#$'9;;(%9'V$3?((`@2$(7$;39(08(.'0A$(&$3<$$8(32$(&'987$7(987(8"8&'987$7(5-6+("'(p<203$ &"[$6+W(296( 62'C8V(7'9%930A9;;/( 08( 32$(.963( 3<"(/$9'6+a(-2$88$#$9C(8"3$7?( ( `@2$'$( 9'$(>5(987 A"%.$3030#$(&'987$7(.'"7CA36(93(::G+cc,+*N(9;"81(<032(A;"8$6(987(<203$(&"[$6?(@206(<96(C82$9'7("= 3<"(/$9'6(91"?a((XK$$(Table A?Y((>$(A"8308C$7O
@2$(ZC'".$98(%9'V$3('$%9086(9(3"C12("8$(="'(%9f"'( 083$'8930"89;(&'9876? -"%.9'$7(3"(32$(]803$7(K393$6+(03W6(%CA2(;$66(&'987D6$86030#$(987(%"'$(#";930;$?((b8 %"63( %9'V$36( 32$'$( 9'$( ;"A9;( A"%.$303"'6( <2"( 9'$( 911'$660#$( 987( #$'/( =;$[0&;$+ 6"C'A081(;"A9;;/(='"%(<20A2$#$'(6C..;0$'(A98(.'"#07$(32$('0123(.'"7CA3(=963$63?((J/ A"83'963+( 32$( 083$'8930"89;( .;9/$'6+( <032( 1;"&9;;/( 083$1'93$7( 6C..;/( A29086( 987 6C..;0$'(A$'30=0A930"8(.'"1'9%6+(A98(6$$%(6;"<(987($[.$860#$?
Table A >5(5'0A$(5"083(#$'6C6(-"%.$3030"8(08(:'98A$
France Nov. ‘98-Feb. ‘99 Jan. ‘99-Apr. ‘99
Apple 8,780 8,506 Compaq 7,474 6,974 Fujitsu 7,268 7,319 Hewlett-Packard 7,399 5,358 IBM 7,711 8,400 Packard-Bell 7,371 7,152 Total Market 6,591 6,411
Source: Company documents.
((((((((((((((((((((((((((((((((((((((((((((((((((((((((((
*N(b8(K$.3$%&$'(*ccc+(]Ki*q::I?G?
For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
Hewlett-Packard's Home Products Division in Europe (1996-2000) 501-053
7
b8( T$'%98/+( 32$( 1'"<32( "=( 32$( .'$#0"C6;/( 7"%08983( #$'30A9;;/( 083$1'93$7 %98C=9A3C'$'P7063'0&C3"'6+(o"&06(987(Z6A"%+(297(639;;$7?( (@2$(%908(&$8$=0A09'/(<96(32$(g9.98$6$ %98C=9A3C'$'(:Cf036C+(<032(036(911'$660#$(%9'V$3081("=(9(;0%03$7('981$("=('$;930#$;/(C86".20630A93$7 987( ;"<D.'0A$7( 5-6( X`32$( 60%.;$( &"[( %"7$;+a( 96( -2$88$#$9C( 7$6A'0&$7( 03Y?( ( :";;"<081( Z6A"%W6 &98V'C.3A/( 08(*ccH+(o"&06(297( ;"63(%"%$83C%(7C'081(9(.$'0"7(<2$8( 03(A2981$7("<8$'620.(987 "C36"C'A$7(%98/("=(036(.'"AC'$%$83(987(".$'930"89;(=C8A30"86?*G((R20;$(630;;(.'$6$83(08(T$'%98/(08 ;93$(),,,+(o"&06+(3""+(297('C8(083"(=0898A09;(70==0AC;30$6?
b8( :'98A$+( >5U( 297( "#$'39V$8( bJL( ="'( 320'7( '98V( 08( C803( %9'V$3( 629'$( ;93$( *ccc? -2$88$#$9C( 933'0&C3$7( 3206( 1908( 3"( ".$'930"89;( $[A$;;$8A$( 08( 6$'#081( %9f"'( '$390;$'6+( 987( 32$ 3'97030"89;(63'$8132("=(32$(>5(&'987(08(:'98A$+(;"81(32$(A"%.98/W6(;9'1$63(ZC'".$98(".$'930"89;(&96$? `R$(29#$(9(63'"81(69;$6="'A$(2$'$(<2"(29#$(1""7('$;930"86(<032(32$(#$'/(."<$'=C;(%966(%$'A29836+ 6CA2(96(-9''$="C'+(MCA298+(987(-9608"+a($[.;908$7(-2$88$#$9C?((@2$(63'$8132("=(32$(&'987(%97$ :'98A$( 32$(&$63( A'"66D6$;;081(%9'V$3( ="'(>5?(>5U(%9891$'6( '$."'3$7( 3293( 32$(59#0;0"8(<96(#$'/ 63'"81(08(:'98A$+(.'$6$83(08(9;;('$390;6(A2988$;6(96(<$;;(96($DA2988$;6(987(>5W6(`62"..081(#0;;91$?a((b8 ;93$(),,,+(>5(<96(=0123081( 03("C3(<032(59AV9'7DJ$;;(<2"('$%908$7(32$( ;$97$'( 08(:'98A$?( bJL(297 $[03$7('$390;(987(:Cf36C(<96(9(6297"<("=(036(="'%$'(6$;=+(29#081(;"63(036($830'$(%9891$%$83(3$9%(08 :'98A$?(b8(:r,,+(32$(59#0;0"8(<96($[.$A3$7(3"(&$(9(i*),(%0;;0"8(&C608$66+(C.(*cF\(='"%(:rcc?
b8( 32$(]803$7(S0817"%+(>5U(<96("8;/( '$.'$6$83$7( 08( 6%9;;( '$390;( A29086( 987( 297( &$$8 C89&;$(3"(<08(6.9A$(08(32$(7"%08983("C3;$36("=(5-(R"';7?( (@08/+(9(=963D1'"<081(;"A9;(.;9/$'+(<96 .0"8$$'081(08#$83"'/D;$66(63"'$(="'%936+(08(<20A2(A"86C%$'6(;""V$7(93(69%.;$(%9A208$6(987(.;9A$7 "'7$'6(="'(.'"7CA3(<20A2(<96(;93$'(2"%$D7$;0#$'$7(='"%(9(A$83'9;(<9'$2"C6$?((@2$(]803$7(S0817"% <96(9;6"(32$(=963$63(1'"<081(%9'V$3( 08(ZC'".$(="'(70'$A3(69;$6(&/(3$;$.2"8$(987(32$(b83$'8$3( X32$ ="'%93(1'"<081(=963$63(08(32$(]803$7(K393$6Y?*F((b3+(3""+(297(&$$8(1""7(3"(32$(59#0;0"8+($[.$A3081(3" '$1063$'(9(:r,,(N,,\(08A'$96$(08(69;$6(X08(7";;9'(3$'%6Y("8(:rcc+(7$6.03$(32$(63'"81(7";;9'(3293(297 08A'$96$7(32$(9#$'91$(69;$6(.'0A$(987(>5UW6(C87$'$630%93081("=(32$(&9AVD3"D6A2"";(7$%987?
Evolving Business Models
M3( 32$( 69%$( 30%$+( 9( '981$( "=( &C608$66( %"7$;6( 297( $#";#$7( X6$$( Exhibits 4a( 987( 4bY? Mainstream retail(<96(630;;( 32$(7"%08983(%"7$;+(&C3(<03208(3206(A2988$;( 32$'$(<$'$(9(8C%&$'("= 9;3$'8930#$(%"7$;6(08(".$'930"8?((Line-up(7$6A'0&$7(32$(A"8#$830"89;(="'%93+(08(<20A2('$390;$'6(A9''0$7 9('981$("=(&'9876(08(08#$83"'/?((@206(%"7$;(297(.'"#$8(70==0AC;3(3"(%9891$(08(&"32(!"'32(M%$'0A9 987( ZC'".$+( .'08A0.9;;/( &$A9C6$( "=( '9.07( .'"7CA3( "&6";$6A$8A$( '$6C;3081( ='"%( .'"7CA3( '981$ '$;9C8A2($#$'/(3<"("'(32'$$(%"8326?((Deal-based &C608$66(<96(<2$8('$390;$'6(.;9A$7(;9'1$("'7$'6(="' 6081;$(.'"7CA3(3/.$6(<032(A"8=01C'930"8("'(&'987081("=3$8($[A;C60#$(3"( 32$(7$9;?( (L966(%$'A29836 ='$BC$83;/(.;9A$7(6CA2("'7$'6(&$A9C6$("=( 32$(#";C%$6(32$/(3C'8$7("#$'+(987(3206(%"7$;(<96(9;6" $%.;"/$7(&/('$390;$'6(<2"(<"C;7("32$'<06$(8"3(6$;;(A"%.C3$'6+(6CA2(96( 32$(-"8="'9%9(=C'803C'$ 2/.$'%9'V$3( A2908( 08( :'98A$?( ( 5'"=039&0;03/( <96( 9( A29;;$81$( 08( 32$6$( 3/.$6( "=( 7$9;6+( 7$6.03$( 32$ #";C%$6(08#";#$7Q="'($[9%.;$+(32$(T$'%98(706A"C83(A2908(M;70(A"C;7(.;9A$("'7$'6(="'(N,+,,,(C8036 "'(%"'$(<20A2(03(32$8(C6$7(96(;"66D;$97$'6(3"(1$8$'93$(63"'$(3'9==0A?((@2$($%$'1081('$390;(="'%93(<96 configure-to-order (CTO),(08(<20A2(A"86C%$'6(#0603$7(9(63"'$(3"(.;9A$(98("'7$'(="'(9(5-(&C0;3(3"(32$0' "<8(6.$A0=0A930"86?((@206(%"7$;+(<20A2(T93$<9/(<96($[.$'0%$83081(<032(08(32$(]803$7(K393$6+(<96 .'"#081(6CAA$66=C;(08(32$(]803$7(S0817"%+(="'(@08/(987(@0%$(-"%.C3$'?(T93$<9/(297(9;6"(".$8$7 C.(63"'$6(08(:'98A$(987(32$(]803$7(S0817"%+(&C3(-2$88$#$9C(8"3$7(3293(32$(fC'/(<96(630;;("C3(9&"C3 32$0'(6CAA$66?(b3(A"C;7(7$;0#$'(1'"66(%9'1086("=(C.(3"(*F\+(A"%.9'$7(<032(32$(F\(3/.0A9;("=(;08$DC. '$390;?(b8(),,,+(>5U('98(9(A"C.;$("=($[.$'0%$836("=(V0"6V6(<03208('$390;(3293(707(8"3(.'"#$(3"(&$(96 6CAA$66=C;(96($[.$A3$7?(M#$'91$(6$;;081(.'0A$6(<$'$(C.(&C3(C803(69;$6(<$'$(;"<(987(32$($[.$'0%$836 63"..$7?(J/(A"83'963( 3"( 32$6$(%"7$;6+( 32$( specialty retail(%"7$;( '$;0$7("8( 32$($A"8"%0A6("=( ;"<D
((((((((((((((((((((((((((((((((((((((((((((((((((((((((((
*G(b8(%07D*ccE+(]?K?D&96$7(->K(Z;$A3'"80A6(9ABC0'$7(o"&06?((_32$'(%9f"'(ZC'".$98(A"%.C3$'(7063'0&C3"'6(<$'$ &"C123(&/(;9'1$'(]?K?(%C;308930"89;6? *F(>5(297($639&;062$7(036("<8("8;08$(69;$6(".$'930"8(08(32$(]803$7(S0817"%(08(*ccE?
For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
501-053 Hewlett-Packard's Home Products Division in Europe (1996-2000)
8
#";C%$(987(2012D%9'108(&C608$66?((K$'#0A$(08(32$6$("C3;$36(<96(.$'6"89;0^$7+(<032(V8"<;$71$9&;$ 639==(97#06081(AC63"%$'6("8(32$('0123(A"%.C3$'(="'(32$0'(8$$76+(987($#$8(08(6"%$(A96$6(966$%&;081 32$(%9A208$(&$="'$(7$;0#$'/(987(08639;;081(03(08(32$(AC63"%$'W6(2"%$?((@206(%"7$;(<96(=";;"<$7(&/ &"32( `%"%Dp8WD.".a( "C3;$36( 6$'#081( =0'63D30%$( &C/$'6+( 987( 2012;/( 6".20630A93$7( &"C30BC$( 63"'$6 6$'#081(A"%.C3$'(9=0A0"897"6?
Direct sales( "==$'$7( 32'$$( 977030"89;( #9'09836?( ( Internet sales+( '$;930#$;/( '9'$( 08( ZC'".$ A"%.9'$7(3"(!"'32(M%$'0A9+(62"<$7(60186("=(1'"<32(.9'30AC;9';/(08(32$(]803$7(S0817"%(987(!"'70A A"C83'0$6?(@206(%"7$;(<96(9;6"(%"'$(.'"=039&;$(3298('$390;(X$[A$.3('$390;(-@_Y(&$A9C6$("=(32$(2012$' .'$#90;081(.'0A$6+(9(603C930"8(-2$88$#$9C(933'0&C3$7(3"(32$(=9A3(3293(A"86C%$'6(3/.0A9;;/(C87$'3""V ;$66(&'987(A"%.9'06"8(3298(<2$8(62"..081( 08(9( '$390;($8#0'"8%$83?( (J/(A"83'963+(`direct direct,a <20A2(A"86063$7("=(3$;$.2"8$("'(A939;"1(70'$A3(%90;+ <96(98($639&;062$7(&C608$66(%"7$;(&C3("8$(<20A2 62"<$7(;033;$(1'"<32m(>5(<96(8"3('$.'$6$83$7(08(3206(A2988$;(08(ZC'".$?(b8(),,,+(>5(".$8$7(>5?A"% $D63"'$6(08(T$'%98/(987(:'98A$(08(977030"8(3"(32$(]803$7(S0817"%(987(K<$7$8?
:089;;/+( 98( employee purchase program (EPP)( %"7$;( 297( $%$'1$7( 08( A$'3908( 2012D39[ A"C83'0$6+( 8"39&;/( K<$7$8+( <2$'$( 2"%$( A"%.C3$'6( <$'$( 08A'$96081;/( .C'A296$7( 32'"C12( 32$ A"86C%$'W6($%.;"/$'(3"(&$8$=03(='"%(60180=0A983;/(%"'$(=9#"'9&;$(39[(3'$93%$83?((Z55(".."'3C8030$6 297(&$$8(=C$;;$7(&/(32$(.C&;0A03/(9'"C87(6"%$(%9f"'(7$9;6(<032(]?K?(A"'."'930"86+(6CA2(96(:"'7? :"'7W6(ZC'".$98(A"%.$303"'6(96(<$;;(96(;9'1$(ZC'".$98(L!-6(<$'$($91$'(3"('$.;0A93$(32$(="'%C;9? >5(297(<"8(9( ;0"8( 629'$("=( 3206( &C608$66(<"';7<07$(987(<96( 93( 32$( ="'$='"83( 08(ZC'".$( $032$' 0%.;$%$83081( 32$(ZC'".$98(."'30"8("=(<"';7<07$(7$9;6( X:"'7+( b83$;+( $3A?Y( "'( 08(706AC660"86(<032 ZC'".$98(L!-6?
b8(32'$$(/$9'6+(>5U(%9891$'6(="'$A963+('$390;(<"C;7(630;;('$.'$6$83("#$'(H,\("=(32$(%9'V$3+ 70'$A3(69;$(%0123(&$(*F\(08(6"%$(A"C83'0$6m(987(Z55(<96(08A'$96081;/(.".C;9'(987(%0123('$9A2(*F\ "=(69;$6(08(6"%$(A"C83'0$6?(M87(<03208('$390;+(T20;9'70(8"3$7+(`32$(&01(&"/6(9'$(1908081(%"%$83C%?a
Lessons for 2001
b8(!"#$%&$'( ),,,+(7$6.03$( 32$(70#060"8W6( $A"8"%0A6( X6$$( Exhibits 5 987 6Y+( -2$88$#$9C '$%908$7(A"8#08A$7(3293(".$'930"89;($[A$;;$8A$(<96(`32$(63'93$10A(<9/(d="'(>5Ue(3"(<08a(08(ZC'".$O
j0123( .'"7CA36( 93( 32$( '0123( .;9A$( 93( 32$( '0123( 30%$( 06( V$/?( b8#$83"'/( 98/ <2$'$(08(32$(6C..;/(A2908(06($#0;?(KC..;0$'6(.'0A$(8$1"30930"8(06(A'CA09;+(9(=$<(7";;9'6 A98( %9V$( "'( &'$9V( .'"=039&0;03/?( r"C( A988"3( 'C8( /"C'( ZC'".$98( A"86C%$'( 5- &C608$66( ='"%( 59;"( M;3"( "'( ='"%( MC6308?( ( J$/"87( 32$( &"[( '$#$8C$( X977D"86+( $D 6$'#0A$6+($3A?Y(9'$($66$8309;(3"(0%.'"#$(.'"=039&0;03/("=(98("32$'<06$(A"%%"7030^$7(5- &C608$66?(U$6.03$(9;;(32$(39;V("=(A"8#$'1$8A$(<032(@o("'(29872$;7+(5-W6('$%908(32$ .;93="'%("=(A2"0A$(="'(A"86C%$'(.$'6"89;(A"%.C3081(8$$76?
For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
Hewlett-Packard's Home Products Division in Europe (1996-2000) 501-053
9
Exhibit 1 ZC'".$98(>"%$(-"%.C3$'(L9'V$3(*cccQJ'987(5"6030"86
PRICE (Comparing Feature-to-Feature)
Advent
Daewoo
MSNet
Time
Cibox
Fujitsu
Tiny Packard Bell
IBM Apple
Compaq
B R A N D
S T R E N G T H
Hewlett-Packard
Nonbranded PCs Branded PCs
Source: HP.
Note: Vobis was not measured.
For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
501-053 -10-
Exhibit 2 r$9'D"8Dr$9'(@".(*,(]8036(="'(-"86C%$'(U$6V3".(08(K$;$A3$7(ZC'".$98(-"C83'0$6
Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth
WESTERN EUROPE AUSTRIA Fujitsu Siemens 174,123 13.1% 239,258 14.3% 37.4% Fujitsu Siemens 6,487 26.9% 24,491 40.9% 277.5% Compaq 105,423 7.9 200,614 12.0 90.3 Compaq 2,069 8.6 13,728 22.9 563.5 NEC CI 98,642 7.4 192,495 11.5 95.1 IBM 369 1.5 5,105 8.5 1,283.5 Apple 44,853 3.4 86,136 5.2 92.0 NEC CI 374 1.6 3,249 5.4 768.7 IBM 57,562 4.3 72,305 4.3 25.6 Birg 1,893 7.8 2,400 4.0 26.8 Tiny Computers/Opus 55,952 4.2 70,415 4.2 25.8 Maxdata 0 0.0 1,650 2.8 0.0 Hewlett-Packard 33,124 2.5 62,304 3.7 88.1 Vobis 3,822 15.8 1,260 2.1 -67.0 Dell 49,847 3.8 60,030 3.6 20.4 Apple 758 3.1 1,082 1.8 42.7 Vobis 95,587 7.2 57,619 3.4 -39.7 Actebis 1,985 8.2 703 1.2 -64.6 Gateway 19,575 1.5 37,480 2.2 91.5 Acer 176 0.7 590 1.0 235.2 Others 593,057 44.7 593,387 35.5 -0.1 Others 6,196 25.7 5,563 9.3 -10.2
Total 1,327,745 100% 1,671,043 100% 25.9% Total 24,129 100% 59,821 100% 147.9%
Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth
BELGIUM DENMARK NEC CI 6,054 24.7% 12,711 34.1% 110.0% Fujitsu Siemens 2,076 8.8% 6,210 19.4% 199.1% Compaq 3,688 15.1 9,932 26.6 169.3 Compaq 4,884 20.8 4,171 13.1 -14.6 Apple 1,271 5.2 3,200 8.6 151.8 IBM 2,850 12.1 3,996 12.5 40.2 Vobis 2,822 11.5 2,203 5.9 -21.9 Amitech 2,617 11.2 3,485 10.9 33.2 Fujitsu Siemens 2,121 8.7 2,015 5.4 -5.0 Newtech 4,275 18.2 2,264 7.1 -47.0 Dell 1,333 5.4 826 2.2 -38.0 Apple 1,184 5.0 1,739 5.4 46.9 IBM 1,087 4.4 306 0.8 -71.8 Actebis 0 0.0 1,599 5.0 0.0 Actebis 0 0.0 138 0.4 0.0 Dell 1,084 4.6 1,447 4.5 33.5 Gateway 95 0.4 100 0.3 5.3 Zitech 900 3.8 1,409 4.4 56.6 Laser 789 3.2 97 0.3 -87.7 NEC CI 648 2.8 1,145 3.6 76.7
Others 5,210 21.3 5,748 15.4 10.3 Others 2,951 12.6 4,485 14.0 52.0
Total 24,470 100% 37,276 100% 52.3% Total 23,469 100% 31,950 100% 36.1%
For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
501-053 -11-
Exhibit 2 (continued)
Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth
FINLAND FRANCE Fujitsu Siemens 3,390 14.1% 4,522 18.0% 33.4% NEC CI 21,360 11.4% 37,430 16.8% 75.2% IBM 1,720 7.2 3,277 13.0 90.5 IBM 10,054 5.4 36,135 16.2 259.4 Compaq 1,308 5.5 2,528 10.0 93.3 Hewlett-Packard 9,147 4.9 30,062 13.5 228.7 DGC 1,302 5.4 1,771 7.0 36.0 Apple 14,361 7.7 16,142 7.2 12.4 DTK 755 3.2 1,617 6.4 114.2 Fujitsu Siemens 10,370 5.5 15,816 7.1 52.5 Osborne 2,110 8.8 1,034 4.1 -51.0 Unika 10,710 5.7 9,680 4.3 -9.6 ARC 701 2.9 870 3.5 24.1 Cibox 16,965 9.0 9,294 4.2 -45.2 Wings 1,116 4.7 762 3.0 -31.7 Compaq 6,279 3.3 7,872 3.5 25.4 Apple 751 3.1 716 2.8 -4.7 Gateway 1,744 0.9 6,424 2.9 268.3 Hewlett-Packard 1,004 4.2 706 2.8 -29.7 Acer 7,253 3.9 6,137 2.7 -15.4
Others 9,811 40.9 7,364 29.3 -24.9 Others 79,349 42.3 48,181 21.6 -39.3
Total 23,968 100% 25,167 100% 5.0% Total 187,592 100% 223,173 100% 19.0%
Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth
GERMANY GREECE Fujitsu Siemens 93,947 25.5% 127,755 26.7% 36.0% Quest 860 9.9% 2,180 18.7% 153.5% Compaq 15,168 4.1 93,779 19.6 518.3 Altec 1,080 12.4 2,115 18.2 95.8 Medion 16,317 4.4 26,851 5.6 64.6 ICE 1,320 15.2 1,890 16.2 43.2 Vobis 55,428 15.0 25,388 5.3 -54.2 NEC CI 188 2.2 1,180 10.1 527.7 Actebis 15,097 4.1 22,667 4.7 50.1 Compaq 297 3.4 984 8.5 231.3 Peacock 0 0.0 22,609 4.7 0.0 Toshiba 0 0.0 544 4.7 0.0 PC Spezialist 12,062 3.3 22,456 4.7 86.2 Apple 276 3.2 317 2.7 14.9 Maxdata 0 0.0 20,168 4.2 0.0 Hewlett-Packard 104 1.2 147 1.3 41.3 Apple 8,877 2.4 16,155 3.4 82.0 Fujitsu Siemens 417 4.8 132 1.1 -68.3 Comtech 13,831 3.8 15,000 3.1 8.5 Dell 3 0.0 118 1.0 3,833.3
Others 138,028 37.4 86,262 18.0 -37.5 Others 4,163 47.8 2,035 17.5 -51.1
Total 368,755 100% 479,090 100% 29.9% Total 8,708 100% 11,642 100% 33.7%
For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
501-053 -12-
Exhibit 2 (continued)
Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth
IRELAND ITALY NEC CI 3,016 20.1% 3,463 15.7% 14.8% Compaq 8,176 9.4% 17,429 15.8% 113.2% Gateway 1,822 12.1 3,125 14.2 71.5 CDC 20,365 23.5 16,722 15.1 -17.9 Dell 1,974 13.1 3,066 13.9 55.3 Vobis 11,259 13.0 10,978 9.9 -2.5 Fujitsu Siemens 1,751 11.6 3,028 13.7 72.9 NEC CI 5,666 6.5 10,398 9.4 83.5 Compaq 2,443 16.3 2,832 12.8 15.9 Olidata 7,837 9.1 9,391 8.5 19.8 Apple 309 2.1 969 4.4 213.6 Apple 2,743 3.2 8,565 7.8 212.2 PC Pro 0 0.0 397 1.8 0.0 Acer 3,367 3.9 7,321 6.6 117.4 Computer City 0 0.0 327 1.5 0.0 Fujitsu Siemens 6,750 7.8 6,760 6.1 0.1 Acer 741 4.9 169 0.8 -77.2 IBM 2,491 2.9 5,861 5.3 135.3 IBM 694 4.6 134 0.6 -80.7 Dell 2,458 2.8 3,083 2.8 25.4
Others 2,282 15.2 4,563 20.7 100.0 Others 15,425 17.8 13,973 12.6 -9.4
Total 15,032 100% 22,073 100% 46.8% Total 86,537 100% 110,481 100% 27.7%
Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth
NETHERLANDS NORWAY NEC CI 11,911 17.3% 23,776 28.6% 99.6% Fujitsu Siemens 1,831 5.9% 4,013 14.7% 119.2% Compaq 15,567 22.6 14,277 17.2 -8.3 Compaq 9,376 30.2 3,586 13.1 -61.8 Vobis 9,769 14.2 9,616 11.6 -1.6 Actebis 965 3.1 2,533 9.3 162.5 Fujitsu Siemens 11,994 17.4 8,441 10.2 -29.6 IBM 7,124 23.0 2,154 7.9 -69.8 Gateway 1,303 1.9 6,475 7.8 396.9 Dell 2,049 6.6 1,563 5.7 -23.7 Apple 3,269 4.7 4,141 5.0 26.7 NEC CI 503 1.6 1,359 5.0 170.2 Laser 2,334 3.4 3,978 4.8 70.4 Apple 916 3.0 1,251 4.6 36.6 Shitec 3,075 4.5 2,836 3.4 -7.8 Evercom 1,334 4.3 1,224 4.5 -8.2 Acer 1,194 1.7 1,724 2.1 44.4 Hyundai 1,925 6.2 990 3.6 -48.6 Dell 2,430 3.5 1,679 2.0 -30.9 REC 906 2.9 973 3.6 7.4
Others 5,981 8.7 6,128 7.4 2.5 Others 4,068 13.1 7,676 28.1 88.7
Total 68,827 100% 83,071 100% 20.7% Total 30,997 100% 27,322 100% -11.9%
For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
501-053 -13-
Exhibit 2 (continued)
Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth
PORTUGAL SPAIN Compaq 3,746 18.7% 3,222 12.9% -14.0% Fujitsu Siemens 3,021 7.5% 10,532 17.9% 248.6% Solbi/Citydesk 2,515 12.6 2,199 8.8 -12.6 NEC CI 3,955 9.8 7,472 12.7 88.9 Fujitsu Siemens 1,124 5.6 1,815 7.3 61.5 Hewlett-Packard 3,476 8.6 7,044 12.0 102.6 Triudus 1,107 5.5 1,705 6.8 54.0 Jump 4,856 12.1 5,192 8.8 6.9 Shine 1,346 6.7 981 3.9 -27.1 El System 0 0.0 4,846 8.2 0.0 Vobis 483 2.4 919 3.7 90.3 Inves 4,564 11.3 4,736 8.1 3.8 Tsunami 315 1.6 816 3.3 159.0 Compaq 3,505 8.7 3,899 6.6 11.2 Apple 111 0.6 560 2.2 404.5 Apple 2,394 6.0 2,938 5.0 22.7 Acer 20 0.1 179 0.7 795.0 KM Computers 1,820 4.5 1,950 3.3 7.1 Dell 624 3.1 160 0.6 -74.4 Toshiba 0 0.0 1,655 2.8 0.0
Others 8,603 43.0 12,381 49.6 43.9 Others 12,638 31.4 8,496 14.5 -32.8
Total 19,994 100% 24,937 100% 24.7% Total 40,229 100% 58,760 100% 46.1%
Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth
SWEDEN SWITZERLAND Fujitsu Siemens 2,734 7.3% 8,054 25.3% 194.6% Fujitsu Siemens 7,711 17.8% 9,923 18.6% 28.7% Dell 4,455 11.9 4,258 13.4 -4.4 Vobis 10,783 24.9 6,555 12.3 -39.2 Compaq 7,164 19.1 4,096 12.9 -42.8 Apple 2,046 4.7 6,385 12.0 212.1 Apple 816 2.2 3,499 11.0 328.8 Compaq 6,257 14.5 6,124 11.5 -2.1 NEC CI 1,241 3.3 1,787 5.6 44.0 Maxdata 0 0.0 5,379 10.1 0.0 Network 475 1.3 1,361 4.3 186.5 Mandax 2,568 5.9 2,592 4.9 0.9 Hewlett-Packard 1,693 4.5 1,139 3.6 -32.7 Dell 2,788 6.4 2,585 4.9 -7.3 Acer 304 0.8 761 2.4 150.3 Microspot 1,136 2.6 2,483 4.7 118.6 DGC 355 0.9 696 2.2 96.1 Athena 1,660 3.8 2,066 3.9 24.5 IBM 7,554 20.1 672 2.1 -91.1 Actebis 121 0.3 1,074 2.0 787.6
Others 10,729 28.6 5,485 17.2 -48.9 Others 8,182 18.9 8,015 15.2 -0.9
Total 37,520 100% 31,808 100% -15.2% Total 43,252 100% 53,271 100% 23.2
Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth Vendor 1999,
Q2 %
Share 2000,
Q2 %
Share Growth
UNITED KINGDOM UNITED KINGDOM (CONTINUED) NEC CI 39,444 12.2% 75,489 19.3% 91.4% Gateway 11,217 3.5 17,595 4.5 56.9 Tiny Computers/Opus 55,952 17.3 70,415 18.0 25.8 Compaq 15,497 4.8 12,155 3.1 -21.6 Granville/Time Computer 25,395 7.8 32,324 8.3 27.3 Fujitsu Siemens 18,399 5.7 5,751 1.5 -68.7 Dell 19,997 6.2 28,391 7.3 42.0 Hewlett-Packard 8,549 2.6 20,292 5.2 137.4 Others 103,202 31.8 90,966 23.3 -11.9 Viglen 21,844 6.7 19,348 4.9 -11.4 Apple 4,771 1.5 18,475 4.7 287.2 Total 324,267 100% 391,201 100% 20.6%
Source: Company documents.
For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
501-053 Hewlett-Packard's Home Products Division in Europe (1996-2000)
14
Exhibit 2 (continued) R$63$'8(ZC'".$98(5-(L9'V$3(K29'$6(&/(L98C=9A3C'$'6+(r$9'D$87(*ccc
Dell 3%
IBM 5%
Hewlett-Packard 2%
Others 41%
Vobis 5%
Brands 68%
Apple 3%
Unika 2%
Tiny 4%
Packard Bell/NEC 12%
Fujitsu Siemens 14%
Compaq 8%
Source: Company documents.
Note: Total home PC market: 6.4 million.
Exhibit 2 (continued) ZC'".$(-"C83'/(K29'$+(r$9'D$87(*ccc
Germ any 25%
UK 19%France
17%
NL 7%
Sweden 5%
Ireland 1%Norway
3% Belgium
2%
Italy 6%
Spain 4%
Switzerland 3%
Denm ark 3%
Aus tria 2%
Finland 2%
Portugal 1%
Greece 0%
Source: Company documents.
For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
Hewlett-Packard's Home Products Division in Europe (1996-2000) 501-053
15
Exhibit 3 >5(59#0;0"8(K9;$6(#6(L9'V$3(08(:'98A$+(gC;/(*cccDMC1C63(),,,
35600
88664
185944
95161
82621
67792
51350 45597
72915
40512
104942
92700
101000 94700
6014636364746402 7769
16790 88354739
13128 7619880076006500
2100
0
40000
80000
120000
160000
200000
Ju l-9
9
Au g-
99
Se p-
99
O ct
-9 9
No v-
99
De c-
99
Ja n-
00
Fe b-
00
M ar
-0 0
Ap r-0
0
M ay
-0 0
Ju n-
00
Ju l-0
0
Au g-
00
France Market
HP
Source: Company documents.
For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
501-053 Hewlett-Packard's Home Products Division in Europe (1996-2000)
16
Exhibit 4a -2988$;(K3'CA3C'$QR$63$'8(ZC'".$+(),,,
T ra d i ti o n a l R e ta il
C o u n try - Cons um e r Ele c
- M a s s M e r c h
- Com pute r S hor e
Dir e c t Re ta il Loc a l
S hops
Fa x /P hone
Ca ta log W e b ba s e d
Em plo ye e
P ur c ha s e
P r o gr a m s
- Ba nk P r om os
- Educ a tion
- Tr a de O r gs
U n i te d K i n g d o m 46% 9% 10% 31% 2% 2% 0%
F ra n ce 54% 3% 30% 5% 3% 5% 0%
G e rm a n y 46% 44% 5% 2% 1% 2% 0%
S p a i n 29% 46% 18% 6% 0% 0% 1%
I ta l y 48% 25% 22% 4% 0% 1% 0%
N o rd i cs 47% 6% 10% 10% 2% 25% 0%
N e th e rl a n d s 37% 25% 7% 9% 1% 21% 0%
S w i tz e rl a n d 45% 25% 20% 8% 1% 1% 0%
C o rp o ra te R e se l le rsS p e ci a l ty R e ta i l D ire ct to C o n su m e r
Source: Company documents.
Exhibit 4b -2988$;(L9'1086QR$63$'8(ZC'".$+(),,,
T ra d i ti o n a l
R e ta i l
D i r e ct
R e ta il
K i o sk
o rd e r m g t
F a x /P h o n e
C a ta lo g
W e b
b a se d
C o rp o r a te
d e a l s
T a x A d va n ta g e
d e a ls
L o ca l
D e a l e rs
Un ite d K in g d o m 2 8 % \ \ \ 8% 8 % \ 2 0 % F ra n c e 2 2 % \ \ \ 8% 8 % \ 1 5 % G e rm a n y 2 0 % \ 1 0 % \ 8% \ \ 1 5 % S p a in 1 8 % \ 1 0 % \ 10 % \ \ 1 5 % Ita ly 2 0 % \ 1 0 % \ \ 8 % \ 1 5 % No r d ic s 2 5 % \ \ \ \ \ 7 % 2 0 % Ne th e rla n d s 2 5 % \ \ \ \ \ 7 % 2 0 % S w itz e r la n d 1 8 % \ \ \ \ 8 % \ 1 5 %
Source: Company documents.
For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
Hewlett-Packard's Home Products Division in Europe (1996-2000) 501-053
17
Exhibit 5 >5UDZ(>063"'0A9;(5'"=039&0;03/
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
H2 FY97 H1 FY98 H2 FY98 H1 FY99 H2 FY99
L o
s s
e s
Source: Company documents.
Exhibit 6 >5UDZ(J'$9V$#$8
98.3% 97.8% 97.3% 96.8% 96.3% 95.8% 94.8% 94.3% 93.8% 93.3% 92.8% 92.3% 91.8%98.8% 95.5%
-
200
400
600
800
1,000
1,200
1,400
1,600
VARIABLE COST %
R E
V E
N U
E / Y
E A
R (
$ M
)
300,000 Units Annually, or $255 Million in Revenue (ASP = $845 avg)
Source: Company documents.
For the exclusive use of Z. Crane, 2017.
This document is authorized for use only by Zach Crane in Marketing Strategy Fall 2017 Session ! taught by Dr. Dennis Pitta, UNIV OF BALTIMORE from July 2017 to January 2018.
