To stay competitive, HP has to keep on introducing the latest models of its Pavilion laptops so that no other competitor can snatch its market share.
Social factors:
Social factors such as education, income levels, preferences, and other cultural factors influence demand patterns in the different regions and therefore affect how a company operates in different regions. The education and income level of consumers affect the perception of brand of different laptop manufacturers (Oliver 1999). The prices of laptop must be ascertained considering the income levels and other social factors affecting the purchase decisions of the consumers. HP has to keep in mind all these factors in order to attract the most potential customers from the target market (Farley 1964). The HP Pavilion dm1-3101ea is manufactured to target the quality and brand conscious people who want a reliable, fast, and modernized laptop (Dixons 2011).
Cultural aspects of different regions affect the occurrence of seasonal sales, which significantly affect the performance of HP laptop sales. For example, it is anticipated that HP Pavilion dm1-3101ea laptop will be best sold in Christmas and during new academic sessions (Dixons 2011).
Internal Environmental Analysis in the light of International Marketing Management Theories and Concepts:
SWOT Analysis for HP Pavilion dm1-3101ea
A. Internal Analysis:
1. Strengths:
A very well-established Brand in the field of Information Technology all over the world
Competitive Product and Process Design
One of the leading brands in innovation
The business has large amount of cash and has no financial issues.
Sales volume always shows a growing trend (HP 2011).
HP always thinks in strategic perspective, which makes its policies remain effective for a long period of time.
The HP products; including HP Pavilion dm1-3101ea 11.6" Laptop are very much appreciated throughout the world due to their products' design, reliability, and style (Dixons 2011).
A strong emphasis is given on Total Quality Management (TQM) even in making small low price accessories.
HP is a global enterprise and after some collaborative agreements with Compaq, the company became the world's biggest computer hardware and peripherals partner.
HP is operating in more than 170 countries including both developed and underdeveloped which is a proof for its high level of acceptability and appreciation (Clemons 2000).
Being a global dealer of hardware, HP dominates hardware market all over the world.
HP competes at local and international level with its strategies that support free-market economies. HP Pavilion dm1-3101ea 11.6" Laptop is available for the customers from all the developed, developing, and under-developed countries which are a proof that HP has a vast distribution network for this product as well as all other products (Dixons 2011).
2. Weaknesses:
The company remained in heavy debt for a long period of time which kept it away from investing in different growth opportunities (Dean & Tam 2005).
High machinery, manufacturing, and technology costs, etc.
HP's touch pads need improvements as they are comparatively lower in quality than those offered by Apple, Acer, and Toshiba.
The mouse buttons on various HP laptops are said to be clumsy to use. HP Pavilion dm1-3101ea 11.6" Laptop has brought a good level of precision in its mouse clicks but there is still a room for improvement (Dixons 2011).
Some of the heavy software is paired with slow hardware that resulted in poor performance in HP Pavilion dm1-3101ea 11.6" Laptop.
B. External Analysis:
1. Opportunities:
Making the product cheaper to attract more customers. HP Pavilion dm1-3101ea 11.6" Laptop is expensive as compared to the other laptops of the same category and specifications
Entry in new markets though expansion or with long-term strategic coalitions and consortiums. This will help HP to generate more revenues and reduce its marketing costs. For this particular Pavilion dm1-3101ea 11.6" Laptop, HP can take the services of more retailers and distributors so that this laptop is available in every town and city.
HP can make more investments on R & D. To bring improvements in the upcoming models of its HP Pavilion dm1-3101ea 11.6" Laptop (Dixons 2011).
It can spend money on HR Development which will help produce highly skillful and specialized workforce (Clemons 2000). This specialized workforce will enable HP to stand on competitive grounds and keep on introducing such astonishing laptops as the HP Pavilion dm1-3101ea is.
HP must make its products with extendable capacity so consumers will not have to spend a big sum of money to buy latest models with advanced features every time. This will strengthen its brand loyalty
In this recession, new and small competitors...
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