Hewlett Packard Situation Analysis

Situation Analysis

By late 1990's the company Hewlett Packard (HP), which has a history of about 60 years, split into two companies. One is HP which is concentrating on computers and printers. Other is Agilent technologies under which test and measuring products was marketed. After the split due to various events that happened, the Agilent technology found it difficult to measure the value and trust customers attributed with the new company Agilent technologies.

One reason is the economic down turn due to technology bubble burst happened immediately after the split, which generally affected the business environment. Since Agilent is concentrating mainly on B2B segment, the poor business environment had a great impact on the demand side for Agilent technologies product. Previously HP products were branded as premium. But Agilent technologies could not do it because many of its customers were facing financial difficulties and they reduced budget spending on these high end equipments.

There was also a change in the company's customer service model, which now used the possibilities of technology and advancement in the internet. The face to face conversations and phone calls were replaced by e-mails and website advertisements.

Finally the impact of split, on customer loyalty. In many studies conducted after the split it was found that the customer loyalty towards the brand 'HP' was very high even after 2-3 years of split.

Statement of Objective

To find the effects of split, change in customer service model and economic downturn on the customer perception of Value and Trust.

To evaluate possible methods to build, retain and measure Value and Trust given the above situations.

Statement of Alternatives

1. Brand Building

2. Clearly define the mission and vision statement of the company to build the trust in the company.

3. Building the name of the company internally as well, it was mentioned in the case that the employees still relate Agilent to HP. This is what they have to change, they can do this by building value of Agilent amongst its employees by conducting activities which make the employees feel that Agilent truly cares for them. Eg., opening divisions where the children of the employees can do internships and part time jobs ( TOI had initiated a regular health check on the food provided by the company to the employees, this builds the value of the company amongst the employees) Agilent needs to do something different, it can be trivial but it needs to strike a chord with its employees.

Decision Making

1. Brand equity -