A CASE ANALYSIS OF HEWLETT – PACKARD COMPANY IN VIETNAM
SUBMITTED IN IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR STRATEGIC MANAGEMENT THIRD TRIMESTER A.Y. 2013 - 2014
ARANZASU, ALANNETE G. – MBA BUENAVENTE, MARIDOL – MBA LIMJOCO, MONET – MBA LIWIDJAJA, JASON NATHANEIL – MBA VILLARAIZ, MARIA VERONICA – MBA
PROF. ROWENA GALANG (April 18, 2014)
I. TIME CONTEXT
The problem was observed during the last quarter of 1995.
II. PROBLEM STATEMENT What are the entry strategies that Hewlett – Packard Asia Pacific should adopt to penetrate the Vietnam market?
III. STATEMENT OF OBJECTIVES
1. To examine the business environment and assess the ...view middle of the document...
ALTERNATIVE COURSES OF ACTION 1. Create joint ventures with companies who are major players in the Vietnamese IT Market – DEC, IBM, and Unisys; 2. Establish own subsidiary at Vietnam.
VI. ANALYSIS OF ALTERNATIVE COURSES OF ACTION (ACA) 1. Create joint ventures with companies who are major players in the Vietnamese IT Market – DEC, IBM, and Unisys; Advantages: 1. Increased capital and other resources 2. Existing channels for sales and distribution 3. Use of a partner’s network to build good relationships, avoid red tape and other bureaucratic complexities 4. Sharing of cost and risks with partners 5. Access to new markets 6. Use of local partner's existing workforce and facilities
Disadvantages: 1. Cost and complexity of establishment 2. Conflicting interests with partners 3. Merging different management styles 4. Division of profits
2. Establish own subsidiary at Vietnam.
Advantages: 1. The losses at a subsidiary do not automatically transfer to the parent company 2. Less risk of losing intellectual property to the competition 3. The parent can exercise control over a subsidiary if it owns a large block of its stock, but not necessarily a majority of the shares. 4. The parent company has the...