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Increase the rate of Brand Recall, which is an indication of market position, by 15%. Achieve industry leading margins with disciplined capital allocation Fully integrate logistics and operations, together with distribution channel into firm’s value chain Increasing the customer loyalty, and market leadership by enforcing global citizenship and leadership capabilities. 7.Recommended StrategiesThe core competencies and key success factors are aspects that HP could leverage on to differentiate itself away from other competitors and achieve the position of a market leader. This report would propose the following strategies in assisting HP to achieve its final aim: Consolidation Strategy–The availability of resources and capital permits HP to pursue consolidation strategy, where a business consolidation strategy can be used to improve operational efficiency by reducing process or personnel. One aspect of consolidation strategy can be referred to mergers and acquisitions which leads to long-term cost savings and increment in market power (Dean, 2003) Related Diversification Strategy –HP is able to exploit the interrelationship and transferability of its competitive advantages across divisions through its core competencies where economies of scope, can be achieved. Internal Diversification will increase the efficiency in capital reallocation and also reduction in the dependence on suppliers and distributors (Olusoga, 1993). 7.1Consolidation Strategy 7.1.1Arena –Strategic Partnership Approach The modern era of technology has led to a slow forecasted annual growth of the printing industry. As technologies such as 3D printing and cloud printing starts to changes the way things are printed, mainstream digital and large format printers are losing their market share in the industry. Despite having substantial market share across Southeast Asia, HP should allocate more of its resources towards Singapore despite the intense competition within the Singapore’s printing industry. As seen on the diagram on the left, Singapore has become a successful printing hub in Southeast Asia and it has contributed towards the economy which has gained a reputation for its efficiency,
Hewlett-Packard SingaporeStrategic Management Report Page 14 reliability and quality (SPRING Singapore, 2013). In additional, the HP’s inkjet printers holds the characteristics of “Star” of the BCG Matrix which carries high potential in gaining market share and substantial profits. In order to expand its opportunities in the current printing market, it is recommended for HP to adopt strategic partnership with its competitors in order to increase market power and offset weaknesses to better achieve the market leader position.