HPs CSO are market leader in computers production Price/performance factor is a USP

Early success in the 1980s was followed by a decline in industry business HP responded by redefining competitive strategy and revamping its product lines Adoption of common RISC architecture, aimed at easing (low-reputed)marketing departments job

Buying patterns shift to increasingly including OEMs, VARs and distributors Consequence: lowered HPs average prices and increase in cost of sales

Decision to focus on top forty to fifty customers UNIX workstations demand growing 40% per year application of Pareto 20/80 rule 20% of CSO customers account for 80% sales

HP serves this segment directly HP sales rep invested time and effort from an early stage in learning their customers businesses both identifying problems and solutions to save money and increase efficiency salespeople transformed in consultants

CONCLUSION The two audits were conducted and recommendations by the consultant are consistent with the critical success factors of the three new categories (down, mid and up stream) and with the findings. However HP needs to resolve its internal and external issues (e.g. being positioned only as a hardware supplier) before moving on to a portfolio management strategy That means focusing on training more salespeople in forging relationships with large enterprises; it also involves prioritisation procedure for mid-stream and up-stream opportunities Currently, HP salespeople are not prepared for such a switch (HP is not well known for its marketing savvy) In the new approach HP would enter an account at multiple levels instead of entering it at the downstream level and then trying to tackle the rest of the organisations needs

Also, there is a need for HPs CSO to institute some changes to the current architecture: Avoidance of numerous time drains due to sales rep running in a treadmill to do everything for their accounts, e.g. Developing quotes, configuring systems Need to prioritise the accounts and institute a support team specialised on understanding the accounts needs further reducing wasted time The latter point will reflect a better conversion rate in sales opportunities, focusing not solely on repurchase opportunities In general give more specifications as to which procedures to follow in deciding to serve an account and at which conditions SWOT Strengths: develop long-term relationship with customers, adding value to both businesses through customisation of offerings Weaknesses: need for optimisation in providing such kind of customised consultant service. In fact sales people are used by the customers to solve any problem they may have. Also, there is a need to prioritise accounts: skip that and youll lose business