BACKGROUNDHP was founded in 1939William Hawlett and David PackardIn 1990, 50 operations, Revenues of $13.2 billion and Net income of $739 millionSix Products GroupsThe Peripheral Group was the 2nd largest◦Printers, Plotters, Magnetic Disks, Terminals
PRINTER MARKETIn 1990, 17 million units of workgroup and personal printers, $10 billion40% impact/dot matrix40% laser20% inkjetBy 1990, customers became aware of inkjet printers (cheap and high quality)HP and Canon pionereed ink-jet technology
The DeskJet PrinterIntroduced in 1988In 1990, sold 600,000 units, $400 millionMission statment:To become the recognized world leader in low cost premium quality printers for offices and homesMain division is located VancouverConsolidating four divisionsColorado, Idaho, California, Oregon
Manufacturing PrinterIn 1979, Manufacturing Cycle is 8 to 12 weeks3.5 months of inventoryIn 1981, Just-in-Time strategy had been introducedReduced inventory from 3.5 months to 0.9 monthsHowever, this strategy and production system were not used efficiently.Bob Foucoult: “We were all dressed up but no one to take us to the dance””
Manufacturing PrinterIn 1988, this innovetive product line was used effectively, with new model “DeskJet printer”With this new model, nearly-letter-quality resolution is obtained and standard paper was used.HP has already had knowledge and implementation for the ink-jet technology and also streamlined manufacturing processAll these capabilities gave the HP chance become the market leader in the ink-jet printer market.