New Product Launching in the UK: HP Professional Computer

New Product Launching in the UK: HP Professional Computer

The New Product and the Target Market

HP (Hewlett Packard) has designed a new computer, loaded with software for professional and business use. It is a new product that is not in existence currently. It is special computer and laptop with special features that only suits businesses because it lacks the normal futures in the current personal computers (PCs) and laptops. This company plans to launch the product in the UK market as soon as possible. The product is a new tool that will help businesses at all levels to conduct business efficiently towards profitability. Most of the businesses suffer from inefficiencies caused by poor management and the inability to have a system that tracks different operations of a company. The new design of the computers is loaded with software that enables the management to track the various operations of a company. The design is appropriate for the UK’s small, medium, and large enterprises. Businesses should acquire this product for their use in operations, finance, and general management. The product is not suitable for personal use because the tools may not benefit a person who desires luxury. The product lacks some of the normal entertainment aspects of Personal Computers (PC). The design is intentional because it is a professional business tool meant to boost business management operations.

The preloaded tools help in the accounting of the resources spent on each business operations, tracking the supply chain of the business goods and services and the general operations daily. With this new product from HP, the UK business will have a tool to enhance profitability and accountability. Benefits to the business professionals come from the fact that the computers have the tools that receive data, conduct analysis, and display the information within the network in real-time (Bright, 2016).  Therefore, the tool enhances transparency and accountability from the workers and management. HP is a leading market player in the computer industry that is capable of producing quality products for the UK market. However, to ascertain the probability of the new product succeeding in the new UK market, it is important to conduct a market analysis concerning the industry and the company.

Competitor and Customer Analysis

HP is an  established and leading branding the PC and laptops industry on the global market. Through a partnership between William R Hewlett and David Packard, HP was established in 1939 and incorporated in 1947 in the U.S. market (Farris, Bendle, Pfeifer, & Reibstein, 2015). The company manufactures various access gadgets and computers for personal and business use. However, HP also offers imaging and printing products for different users in the market. Its products and services offer solutions to both personal and business clients. With such a background, it plans to launch a new product in the UK market to offer products and solutions to UK businesses.

Competition for the global market share is on the rise, forcing the company to come up with new products constantly to stay at the top of the industry. Currently, HP controls the largest market share in the industry, controlling 22%, followed closely by Lenovo at 20% (Hardy & Gelles, 2014). HP has had to spend much of its resources on research, development, and marketing in order to produce products that offer solutions to the changing needs of the people and businesses. Their products can be used at the lowest consumption chain as well as in the upper market. The diversity of the products from the HP brand makes it stand out above other competitors like Lenovo, Dell, Apple, and Acer. The net revenue has continued to grow in the last decade, an indication of the innovation and marketing efforts of the brand portfolios.

The PC and laptop industry is experiencing a decline in the global market. For the last seven years, the number of items ordered has either remained constant or declined each year. The main reason for the decline is the growth of the mobile industry on a global scale. Most of the consumers have adopted mobile computing because of the convenience it offers. Therefore, consumers prefer to acquire a large screen mobile phone or a tablet that allows them to access the same services offered by a laptop. According to Cameron (2014), the smartphone industry’s growth in the decade has led to a decline in the demand for PCs and laptops. People prefer gadgets that allow for mobility while on the use, something that laptops and PCs lack.

The market for PCs and laptops still exists because of certain functionalities that can never be replaced by smartphones. The professional aspect of conducting business requires a certain level of operations that mobile devices may not provide. Therefore, HP is aware of the fact that the new product launch in the UK will have a higher demand because mobile devices in their market can never replace the services it provides. The demand for PCs and laptops will remain high, especially among corporates and other professionals who are serious with the quality and consistency of their work. The rise of the smartphone is only attributed to personal and individual uses. With this information, the company works towards innovating better products that offer a solution to the corporates. It also forms the basis of establishing HP retail business and HP Enterprise that offers corporate business solutions.

HP SWOT Analysis

A SWOT-analysis helps in identifying some of the strengths, weaknesses, opportunities, and threats for a company. Such an analysis is important in determining the competitiveness among other players in the industry. The new product will depend on the past, current, and future performance of the company with respect to the new market and targeted consumers.


Conspicuous Brand Image: HP is a brand image identified by consumers for its quality products and innovations. It is a global brand that offers a range of products and services to consumers. According to Besanko, Dranove, Schaefer, & Shanley (2012), the reliability of its products allows people to trust whatever the company produces. The range of products and services that offer a solution to a higher range of consumers enables the company to achieve more sales and higher revenue.

Higher Product Portfolio: The company offers a range of laptops, desktops, and tablets that suit different users. On the same note, HP offers imaging solutions through printers and associated technologies for consumers. This means that the company targets a bigger segment of the consumers with its products. The bigger portfolio also helps the company to overcome the economic challenges that arise from time to time.

Bigger Market Share: Currently, HP is the leading manufacturer in the computer industry in terms of shipments and sales. It leads the market share, followed by Lenovo, Dell, and Apple, in that order. Lenovo is the closest competitor in terms of shipments and sales. Controlling a higher global market is important because it shows that the company has a larger customer base. In addition, it is an indication of the trust customers have on the products and services offered by HP.

Innovation Oriented: HP spends a large number of its resources on research and design of the products. It has grown because of the need to keep up with consumer needs in the market. In a highly competitive industry, HP stays on top because of the innovations that are attractive to the consumers. The innovation for the UK market is one of the achievements.


Dependence on the U.S market: HP’s majority revenue comes from the U.S markets. This exposes it to the uncertainties of the market that affects business operations, thus reducing revenue. The company could stabilize its revenue and the brand when it distributes its services across the global market. However, the distribution would also depend on specific technologies in the market. Certain markets may not be ready to consume certain technologies from a developed industry like the U.S.

Reducing Gross Margin: The continued decline in HP’s gross margin is a serious weakness for the company. Between 2015 and 2017, the company experienced a decline from 19.3% to 18.4%. The decline could be attributed to the unfavorable foreign exchange rates during business operations and the continued dependency on personal computers as the main business product.

Dependency on Personal Computers: As noted above, PCs are the major source of revenue for the company. With the growth of the smartphone industry, many individuals prefer phones to PCs for daily operations. Overall, the reduction of the Gross Margin is a factor of the reduced uptake of the PCs in the market.


Product Innovations: Continuous innovations by the company provides an opportunity to come up with new models of PCs and laptops that satisfy the changing needs of the market. Individuals and corporations are looking for products that are efficient and energy-saving. Therefore, HP has an opportunity to create efficient products that are easily portable, loaded with business tools, especially for the UK market.

Digital Marketing: The use of the internet by the UK market is an opportunity for HP to market the new product in the market. Many of the targeted users use the internet for various reasons; therefore, digital marketing is an opportunity to ensure that the new product is conspicuous to the consumers. Digital marketing also provides the platform for potential customers to interact with the new product and the management.

Diversification: HP is the leading company in the industry, something that has been enhanced by the many products it offers to the consumers. Therefore, it offers more quality products and services to customers. For instance, the new product it plans to launch could come with other offers like cloud computing. Diversification is an opportunity for the company to make more sales in the UK market.


The decline of the PC brand demand is a major threat that has led to reduced sales by the company. Predictions indicate that the decline will continue in the next decade. The uptake of smartphones in the market is the major cause of the threat to the PC and laptop brands. Legal and political regulations in the UK could also pose a threat to the establishment of the new product in place. In addition, the competitive nature of the industry from major players like Lenovo and Dell poses a threat to the new product in the UK market.

PESTEL Analysis

Political, Economic, Social, Technological, Environmental, and Legal (PESTEL) are important aspects of conducting international business. HP will have to consider these factors before launching the product because they could determine the success of the sales.

Political forces in the UK could easily determine the business operations in the region. At present, in the European Union (EU), the political system dictates some of the business laws that govern corporations. Presently, the UK is in the process of cutting links with the EU, something that has affected business operations and politics in the country.

Economic forces will influence the launch of the new product because HP relies on the purchasing power of the people. At the moment, the UK economy is doing well, meaning that the company is likely to register high sales for the new products. It would be a different case if the economic situation at the moment was bad (Laszlo & Zhexembayeva, 2011). However, it remains uncertain what will happen after the Brexit.

The social aspect of the UK market will influence the performance of the new product in the market. The current increased need for technology in doing business makes HP an important player in the market. Businesses are looking for technological solutions to business operations. In general, the UK is technologically savvy, meaning that the new product comes in handy for small and large businesses.

Technological forces determine success in the current business world. Technology helps in all business operations, from production to marketing and sales. HP has an added advantage because it is an established brand in the global market. Combined with the UK’s integration of technology in all operations, the company will not have a hard time marketing and distributing the new product.

Environmental sustainability is an important factor that determines the customer loyalty of the products. The UK market encourages all technological companies operating within their market to embrace environmental sustainability. On this, HP has an elaborate sustainability plan for its products. The environmental standards meet the requirements within the UK and EU markets.

The legal aspects may lead to the ban of a product that contravenes the requirements. Legal matters range from labor and environmental safety requirements. Non-compliance with the laws in place could lead to hefty fines for the company. HP has a long-standing record for law compliance. Legal compliance is applied in all markets before operations. The company subjects itself to all necessary inquiries to ascertain compliance as per the law.

HP Marketing Mix (7Ps)


Hewlett Packard establishes the prices of the products depending on the need of the consumers. There is a challenge of the cheap smartphones that seek to offer quick solutions. Therefore, for the new computers that the company seeks to launch, it would be convenient to design them according to the needs of the businesses. This will avoid higher prices that arise from unnecessary functionalities in the products. Companies will not pay for the functionalities they do not need.


HP has its headquarters in California, USA; however, it has subsidiaries in other major markets of the world like Tokyo, Singapore, Geneva, Huston, and Victoria. The best aspect of HP’s marketing strategy comes from a partnership with individual software providers in a program known as Developer & Solution Partner Program (DSPP). This means that other UK software vendors could easily be part of the major launch of the new product.


HP hosts a website that allows consumers to get information on the new products and services. On the same note, the company also has numerous blogs that allow people to ask questions on the services available (Goi, 2009). Using these platforms, the company can reach as many people as possible in the UK market through interactions concerning the new product.


The company uses people to achieve success in the market. With more than 330,000 employees, the company celebrates each employee for their achievement, while encouraging unity. These employees will play a major role in ensuring that they reach out to the new potential customers in the UK market through instant interaction through websites, emails, and social media. On the same note, the company will ensure proper representation of the majority and minority during the recruitment of the new staff.

Physical Evidence

The company has one of the best packaging plans that stands out among the rest of the competitors. On the same note, HP has one of the best websites that present accurate information about the products and services. The website will be important in giving evidence of the products on sale.


HP has maintained its top brands because of the efficient production processes. Design for Supply Chain (DfSC) system is one of the innovations that has made it easy for product supply to all markets (Crothers, 2012). Operational efficiency will ensure that suppliers get the goods in good time for the customers in the UK market.

HP is a major player in the PC and laptop industry, and if it applies to this marketing strategy, it stands to be successful in the UK market. It is a brand that offers a competitive edge above other industry players like Dell, Apple, and Le


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