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 Headquarters of HP

HP Channel Management - Kashif Ahmed Saeed Final

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Headquarters

of HP

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• Channel Management

• Factors leading to Managing different channels

• Activites/Functions

• History

• Mergers and Earnings

Traditional Approach• Why HP went online

• Benefits of going online

• Why HP choosed FedEx

• Supply Chain Solution

• Summary

CONTENTS

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60%

10%

5%

7%

11%7%

HP PSG Market share In Pakistan

HP Lenovo Dell Acer Asus Others

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HP PSG PRODUCT SHARE IN PAKISTAN

MARKET

• Laptops per Qtr. On avg. 4500 units

• Desktops per Qtr. On avg. 3500 units

• LCD/LEDs per Qtr. On avg. 6000 units

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HP is an American multinational information tec

Bill Hewlett and Dave Packard are the founder

The company originated in a garage in nearby Pa

In 1939, Packard and Hewlett established (HP) ingarage with an initial capital investment of US$5

HP incorporated on August 18 1947, and went pNovember 6 1957.

Their very first financially successful product waaudio oscillator, the Model HP200A

The Walt Disney Company was one of earliest cu

HISTORY

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HP's posted net revenue in 2009 was $115 bill

In 2006, the intense competition between HPtipped in HP's favour

In 2008 HP became #2 globally in IT services aby IDC & Gartner

In November 2009, HP announced the acquisiof 3Com

On April 28, 2010, HP announced the buyout

On August 6, 2010 CEO Mark Hurd resigned 

MERGERS AND EARNINGS

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DISTRIBUTION IN PAKISTAN

• Paksitan Office products (POP)

• Advance Business Systems• Spectrum

DISTRIBUTORS• Mushko Electronics Pvt.Ltd

• Jaffer Brothers Pvt.Ltd

• Premier Business Systems

• New Horizon Computers

TIER-1 PARTNERS

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HP Sells Their Pc’s and Laptops thru multi-channel i.edisti,retail outlets etc.

HP also Distributes their Products through Multibranand Computer Malls (like HP Experience Zone)

It also has Dedicated Stores in Major Cities like Karacand Islamabad and Multan.

• On-line retail channel www.hpshopping.com

CHANNEL OF DISTRIBUTION

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Since couple of decades HP has a reputation of exceedingcustomers expectations.

The main parameters of going online was Reducing costs, IncreaseSales revenue, and strengthen customer relationships

HP’s online store (www.hpshopping.com) was launched in early1998 and experiences revenue growth of over 500% annually.

HP decreases returns cycle times by 80%.Online status tracking offers complete visibility throughout the

returns process

WHY HP WENT ON-LINE?

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- Direct contact with customer.

- Removal of intermediaries.

- Reduction in cost.

- Reduction in time.- Proper assessment of customer needs 

ONLINE CHANNEL LEADS T

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Competition like Dell/Aer/IBM Lenovo/Fujitsu siemens

Competitive pressure

e-commerce a dimension less medium comprising

hundreds of opportunities for every buyer and sellers.

Cost reduction

Desire to manage vertical markets

FACTORS LEADING TO CHANNEL

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HPSHOPPING.COM

- Hpshopping.com was ranked #1 inretail revenue and #3 in PC product

sites. It also ranked in the top ten for

overall revenue and brand recognition.

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HP wanted a provider with industry-leading experience

and capabilities, including:

Proven expertise in information technology.

Experience in e-commerce and channel management

HP shopping.com asked FedEx to develop a

comprehensive solution that would manage the entire

process — from order management to order fulfillment

WHY HP CHOOSED FED-EX?

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1. Market segmentation (loosing market due to UAE)

2. HR Policies of retaining good people

3. Customized PC and Laptop offerings

CHANNELING SOLUTION

Recommendations

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1. Market segmentation (loosing market due to UAE)

2. HR Policies of retaining good people

3. Customized PC and Laptop offerings

CHANNELING SOLUTION

Recommendations

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ORDERMANAGEMENT PROCESS

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Warehouse management

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