hp case - online presence

Topics: Value added, Sales, Value Pages: 7 (1778 words) Published: January 31, 2014
Kind of online presence HP should have and why

HP can leverage the opportunity to become the first mover to attract increasing number of internet shoppers in the Printers business. This will help HP in interacting directly with its users, strengthen its brand and build relationships. Potential benefit of being a first mover.

There will be enormous amount of supply chain information that will be available on using this mode and synthesizing that information, though difficult, will of be of great use in long run. A good way to attract repeat buyers as they tend to know exactly what they need.

Risks in Strategy

Risks :
First mover risk as competitors were not using this channel currently. Price different in online products and other channels can weaken relationship of HP with its retailers and other distributers. Expenses in the area of development and maintenance of website along with marketing and advertising allowances required. In addition to that costs are involved in acquiring a new consumer. E-channels were valued based on their future value and were mostly in loss currently. Though there is lot of information that will be available regarding supply chain on using this mode but synthesizing that information is extremely difficult. Thus the information would not be of much help. HP would need to provide the value added functions that were provided by retailers when sold via retail stores.

Will provide solution to customer dissatisfaction in the area of level of service offered and lack of knowledgeable sales people offered by conventional channels.

Kind of online presence HP should have and why

HP can leverage the opportunity to become the first mover to attract increasing number of internet shoppers in the Printers business. This will help HP in interacting directly with its users, strengthen its brand and build relationships. Potential benefit of being a first mover.

There will be enormous amount of supply chain information that will be available on using this mode and synthesizing that information, though difficult, will of be of great use in long run. A good way to attract repeat buyers as they tend to know exactly what they need.

Risks in Strategy

Risks :
First mover risk as competitors were not using this channel currently. Price different in online products and other channels can weaken relationship of HP with its retailers and other distributers. Expenses in the area of development and maintenance of website along with marketing and advertising allowances required. In addition to that costs are involved in acquiring a new consumer. E-channels were valued based on their future value and were mostly in loss currently. Though there is lot of information that will be available regarding supply chain on using this mode but synthesizing that information is extremely difficult. Thus the information would not be of much help. HP would need to provide the value added functions that were provided by retailers when sold via retail stores.

Will provide solution to customer dissatisfaction in the area of level of service offered and lack of knowledgeable sales people offered by conventional channels.

Kind of online presence HP should have and why

HP can leverage the opportunity to become the first mover to attract increasing number of internet shoppers in the Printers business. This will help HP in interacting directly with its users, strengthen its brand and build relationships. Potential benefit of being a first mover.

There will be enormous amount of supply chain information that will be available on using this mode and synthesizing that information, though difficult, will of be of great use in long run. A good way to attract repeat buyers as they tend to know exactly what they need.

Risks in Strategy

Risks :
First mover risk as competitors were not using this channel currently. Price different in online products and other channels can weaken relationship of HP...
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