Hewlett-Packard stretch across numerous information technology markets and have many competitors in each one. HP had a 3. 3% market share in the IT market based on industries revenue figures for 2012. That year their revenue was about SSL 00 billion dollars which was second only to Apple Inc. That year which had a 3. 9% market share and roughly $149 billion dollars’ worth of revenue. Price elasticity of a product is a change in the quantity demand of a good divided byte change in the price for the good.
Hp is a technology and reward company and consumers have seen a lot of their products in electronic stores. With all the competition that they have in the varies product markets and the ever growing number of new products being developed and released. This create short life cycles for products and with consumers being extremely price sensitive due to the high number Of alternatives, this drives a high level of elasticity in the technology sector, that can affect many of HRS products. Based on some analysis that has been done so far, the software revenue grew 14% year after year with a 27. Operating margin. Software revenue was increased by 9% license growth, 9% support growth and a 48% growth in services. Their financial set-vices revenue grew by 1%. There were also declines in other divisions of the company, for example personal systems, printing and enterprise servers. All those divisions revenue declined over the past years, this indicates that HP should continue to develop its software and financial service divisions. Those sectors of the organization have shown growth and should move towards expanding these sectors of business.
HP would also look into integrating more of the licensed software into the hardware products. For example they could offer software bundles with their server and storage division that can be used for those technologies. Apple, Inc. Has become a very strong competitor to HP in the technology market, with their emphasis on design and not just hardware. Hewlett- Packard should try to replicate this model from Apple, Inc. Place more resources into design and innovation of new products and push towards well designed products that provide cutting edge tools that are user friendly.