Strategic Analysis: HP's Approach and Opportunities in Zink-Enabled Portable Mobile Printer Market

Overview of HP's New Product Development Approach

HP became a multinational corporation widely respected for its products, and its management style and culture known as the HP Way. One of HP’s most successful products was the HP LaserJet Printer. It first appeared in 1984 to rave reviews. The huge sales from HP LaserJet Printer helped it to become the first successful HP product for the Personal Computer (PC) market. Due to the pressures in the technology and business world, Hewlett-Packard was split into two companies in 2015: HP Inc., which made personal computers and printers, and Hewlett Packard Enterprise, which provided products and services for businesses. Even till today, consumers can easily find a HP PC, laptop or printer anywhere in the world due to the HP’s competency in establishing a huge global distribution network.

Seven years after PoGo and the appearance of many other competitors (Kodak, C+A Global and Prynt), HP released the Sprocket, a Zink-enabled portable mobile printer, into the market in September 2016. Similar to the original Zink-enabled PoGo, the Sprocket’s footprint is about the same as a smartphone. The functionality of the Sprocket is unchanged when it is compared to the PoGo – to allow smartphone users to print their photos via Bluetooth.

Assume that you are an external consultant hired by the founder of a major Asian company named Ototo. This family run company has been a major PC Peripherals company that specialises in printers, scanners and facsimile machines. The likely second-generation successor is keen to create a new business unit that specialise in the Zink-enabled Portable Mobile Printer market. The current non-family management team is not impressed with the idea. You have been asked by the founder to generate a report to help the founder make this strategic decision.

From your studies at SUSS, you understand the need to use the relevant frameworks and include relevant diagrams, learnt from this course, in order to present your report in an unbiased and systematic manner. You are well aware that you would need to carry out the necessary research in order to complete the report for the founder.

Question 1

You have been instructed by the founder of Ototo to study the likely thinking process behind HP Sprocket’s New Product Development approach.

(a) Debate the likely HP Inc.’s risk uncertainty strategy when they introduced the HP Sprocket in 2016.

(b) Illustrate the likely level of HP Inc.’s level of profit from the HP Sprocket based on the company’s competency. You should provide the sources of your research.

Question 2

You are also equired to consider the possibility of creating a service aspect to this business and the technology management to make this business unit work.

(a) Appraise a Business Opportunity Case for your client’s foray into the Portable Instant Printer based on the Zink Technology, Current Competitors and their existing products, and Customers’ Behaviour. You are required to indicate the sources of your research.

(b) Discuss a service innovation that Ototo can introduce on top of providing the new printer. You are to provide the source of service innovation that has helped to develop your new service innovation recommendation.

(c) Develop the Profit Model Innovation that Ototo can employ based on the answer developed in Q2(b).

(d) Prepare the model of technology transfer that Ototo can employ to introduce the Zink technology into the company.

Question 3

Analyse the likely growth share of the proposed Ototo’s Instant Mobile Printer to develop the final recommendation to be made to Ototo’s founder.