Hewlett-Packard's (HP) influence across the printing and copier industries is only equaled by its relentless pursuit of business and market opportunities and efforts to meet and surpass customer needs. The industry is experiencing considerable growth in the number of consumers moving to color platforms, a development that HP should compliment with tailored purchase processes, reliable products, and right customer values. An interesting development is Kodak's push into printers, which has been characterized by the debut of printers and products priced way below those of HP's. HP tries to meet the challenge head-on via the creation of marketing deals requiring retailers not to sell compatible ink cartridges. However, the strategy is flawed. It only convinces consumers to stop buying HP printers and substitute with products offering reasonably priced inks, allowing Kodak to gain more traction against the entrenched one. Technology has increasing returns, thus it should be increasingly cheaper for HP to create equivalent products over time, with lots of room for profit and reasonable consumer prices.
Hewlett-Packard's (HP) influence across the printing and copier industries is only equaled by its relentless pursuit of business and market opportunities and efforts to meet and surpass customer needs. The industry is experiencing considerable growth in the number of consumers moving to color platforms, a development that HP should compliment with tailored purchase processes, reliable products, and right customer values. An interesting development is Kodak's push into printers, which has been characterized by the debut of printers and products priced way below those of HP's. HP tries to meet the challenge head-on via the creation of marketing deals requiring retailers not to sell compatible ink cartridges. However, the strategy is flawed. It only convinces consumers to stop buying HP printers and substitute with products offering reasonably priced inks, allowing Kodak to gain more traction against the entrenched one. Technology has increasing returns, thus it should be increasingly cheaper for HP to create equivalent products over time, with lots of room for profit and reasonable consumer prices.
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