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Hewlett-Packard Company : Network Pronter Design for University…
Hewlett-Packard Company : Network Pronter Design for University
Introduction
Main topic : decision whether or not to use a universal power supply for "Rainbow"
North America : 100 volt, European : 220 volt
HP had to specify the requirements of the two types at least 14 weeks ahead
Universal power supply would increase costs by $30 per unit
HP COMPANY
"innovation" was the key of the strategy
Invest heavily in technology, spending $1.6 billion (10% of revenue)
Changing Market Conditions
requirements : low prices, broad availubility, ease of use
competitors : Aplle, Fuji_Xerox, Kyocera, Oki, Compaq
had a dominant 57 percent of the worlwide laserprint market
Network Printer Division Supply Chain
Revenue was $3 billion in 1992
Projected to reach close to $8 billion by 1998
"rainbow" will be price between $5000 to $6000
Network printer division at HP currntly outsouces the procuement and assembly of the products's main engine to a Japanese Partner
The Universal Power Supply Decision (Marketing Perspective)
VIPER
HP had not forecasted the corrct mix of European and North America VIPER demand
Was sold out in Europe, in US was less than anticipated
(product developnment perspective)
The product life cycle of printers : ramp-up, maturity, and end of life
implemented two new product developnment metrics
first, instituted cost reduction cost goals for each new generatiion of printer
Break Even Time
(finance perspective)
there will be $13.5 million in additional material costs (incorporate the universal power supply)