Value Chain Analysis of HP

HP is a personal computer and printer manufacturing technology American multinational company. Hewlett Packard founded the tech company in 1939. Today, we’ll discuss the value chain analysis of HP supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Suppliers Companies of HP

• Wistron
• TPV Technology
• Quanta Computers
• Qisda
• Plumage Technology
• LG Display
• Kinpo Group
• Jabil
• Inventec Corporation
• Hon Hai Precision Industry
• Flex
• Compal Electronics

The Value chain analysis of HP supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s the supply chain analysis of HP value chain analysis company example as follows;

Value Chain Analysis of HP

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of HP supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of HP

Some of the five main primary activities in the value chain analysis of HP supply chain analysis are as follows;

Inbound Logistics of HP

I-Large Supplier Network

HP has established a very large supplier network in various countries; Taiwan, China, Brazil, India, Malaysia, Singapore, USA, Czech Republic, Mexico, Thailand, Vietnam, and others. The company deals with multiple types of suppliers and they are as follows;

• Component, material, and commodity suppliers
• Original design manufacturing suppliers
• Electronics components manufacturing suppliers
• Contract manufacturing suppliers

II-Supplier Diversity Program

HP prefers to work and partner up with a diverse range of suppliers through its supplier diversity program. In fact, 51% of the company’s suppliers are diverse; disabled, LGBTQ, veteran, service-disabled, minority, women, and small businesses. Along with partnering up with diverse suppliers, the company offers the following benefits;

• Business promotion opportunities at the national and regional level
• Inclusiveness and participation in the company’s database
• Networking support
• Training, education, and mentoring access

III-Code of Conduct for Suppliers

HP has developed strict codes and conduct and regulations for suppliers to protect the interest of ordinary workers in developing countries. It comprises of following elements;

• No force and child labor
• Compliance with human rights standards
• Following the minimum wage laws of the country
• Properly maintaining the record
• No exploitation of workers

Outbound Logistics of HP

I-Worldwide Network

HP has established a very large and strong distribution network in various countries across the world. It allows the company to ensure the smooth move of products, goods, and components from suppliers to manufacturing and assembling units, distribution centers, and then to the retailers resellers, and wholesalers.

Operations of HP

I-Warehouses and Distribution Centers

HP has established a very large network of warehouses and distribution centers in various countries across the world. They receive computers, printers, and other components from the production and assembling facilities; temporarily store the inventory, and then deliver it to the retailers, wholesalers, resellers, and end customers based on their order requirements.

The company has built the distribution centers precisely in a strategic location near the retailers and wholesalers. It allows the company to decrease the transportation cost and increase the delivery timing of the supplies.

II-Assebling Facilities

HP has established various assembling facilities and plants in countries like Vietnam, Thailand, Mexico, China, India, and the USA. The components and parts manufacturing suppliers are in the Philippines and Malaysia. The assembling units receive parts and components from various suppliers and then deliver them to the assembling units.

Marketing & Sales of HP

I-Media Channels

HP employs multiple media channels for the marketing and promotion of its personal computers, printers, and other tech devices. They are like online media, digital media platforms, TV, radio, and print media to attract the attention of mass media. Along with paid advertisement campaigns, the company offers discounts, bundle offers, and other promotional campaign offers to customers.

Services of HP

HP offers a wide range of services to the customers to improve the customer satisfaction level and establish a loyal database for customers. Some of them are as follows;

• Repair and maintenance
• Consultation services
• Software as a service
• Integration services
• Networking services
• Support network
• Application development

Supporting Activities of HP

Some of the main supporting activities in the value chain analysis of HP supply chain analysis are as follows;

Infrastructure of HP

HP has established a very large infrastructure of production and manufacturing facilities; research units, components manufacturing supplier network, distribution centers, and retail network. The worldwide network and infrastructure help the technology brand to smoothly perform its operations; and offer the finished tech devices product to the end consumers without any disruptions.

HRM of HP

HP has employed roundabout 58000 employees to manage its global operations. The human resource management department of the tech company plays a key role in building a diversified suppliers network; recruiting a diverse workforce, and maintaining a healthy workplace environment. The smooth flow of internal operations and a healthy professional working environment would help the company to perform its operations on time.

Technological Development of HP

HP invested approximately 1.57 billion USD in research for the development of innovative tech products and digital devices for customers. The objective is to develop efficient technological processes, achieve cost-efficiency methods, and develop innovative devices for customers.

Procurement of HP

HP is highly cautious about the ethical procurement of materials, components, suppliers, and parts for the production of tech devices. The technology brand has set up clear regulations for the components suppliers and manufacturers to make sure ethical sourcing and procurement.

Conclusion: HP Value Chain Analysis Example Company | Application of Value Chain Analysis Process 

After an in-depth study of the value chain analysis of HP; we have realized that HP is the world’s leading technology, computer, and printer manufacturing brand. If you are learning about the HP value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.