An Analysis of the Printer Industry Temple Fox （打印机行业的分析寺庙狐狸）.pdf

An Analysis of the Printer Industry and Hewlett-Packard’s Competitive Positioning Team 5 Chelsea Christman Jonathan Fertal Jose Larin Alexandra Tancredi Gaurav Varma 1 Introduction: Hewlett-Packard (HP) has customers in over 170 countries and realized net revenue of $120 billion dollars in 2012 (HP Annual Report, 2013). HP operates distinct business units- personal computers, printing, IT Services, Enterprise Infrastructure, and Software markets- and generates 65% of its net revenues outside the United States. Our Porter’s five forces analysis will focus on the printer manufacturing industry (SIC 3577 - Computer Peripheral Equipment). Printers and other peripherals account for 20% of HP’s business and cater toward six groups of customers: buyer groups, individuals, small businesses, large businesses, governments, and educational institutions. To satisfy these groups, HP uses 98 firms, representing 95% of its procurement budget, to secure all the necessary inputs and raw materials. HP, the market leader, is primarily challenged in the printer market by Canon, Epson, Samsung, and Brother. As of 2010, HP held a 53.4% market share of Hardcopy Peripherals in the US and was followed by its nearest competitor Canon, which held a 14.2% share (Dignan, 2010). Rivalry: Based on industry analysis, high rivalry exists within the peripheral equipment sector, especially amongst traditional laserjet and inkjet printer manufacturers. Although successful in the past, Hewlett-Packard has recently positioned itself poorly within the market and is looking to refocus with sustainability efforts and new products such as 3D printing. H