The fast changing environment of technology has necessitated the Hewlett Packard to meet the challenges of emerging new technology in mobile. While HP has been a leader in the computer technology and related areas, it needed to be creative in its diversification and introduce new gadgets to compete with its rivals like Apple Inc, IBM, Sony and Nokia. Palm provided HP with the opportunity to gain a competitive edge against its rivals. The three major opportunities that Palm gained through its merger with HP can be described as below:
Brand creation is a major marketing technique that has massive support within and outside the business community and management strategy. ‘Brand building is needed because products are the same’ (Kotler, 2005). The brand name ensures that the product maintains a high standard of excellence at a price that a customer is willing to pay for. Therefore, the brand provides the customer with a quality product which satisfies his needs, making it as one of the key reasons that brands still enjoy the popularity amongst its customers and at the same time, attract fresh clientele.
HP is an established international brand and a leader in business computing. Palm is handheld computing device with multiple functions. It is an extremely useful device for executives who are constantly on move and who are looking for gizmos which are small enough to hold in their pockets but powerful enough to be used as computer, or phone or even as an entertainment device, as and when the need arises. Globalization has changed the dynamic of the business and today the professionals need to have all the information at their tip while following a hectic schedule. So the smaller the device which can pack such features, better are its chances of capturing this target group. Hence, Palm’s association with HP would greatly enhance its brand value.
Financial considerations are strong motivating factors that promote strategic