needs. Due to the change, the margins are shrinking and PC companies are exploring other markets. HP is one of these companies that are shifting into other markets. The first market HP is moving into is the server/workstation market. This market currently has medium internal rivalry, but as other companies enter, the rivalry will increase. Not all PC companies have the facilities or suppliers to produce servers so substitution is somewhat available, but not to the same extent as PC뭩. Supplier power, given the current providers, is limited, but no one company holds such a monopoly as say Intel in the PC market. Buyers also have limited power because the option of whom to purchase from is not fully developed. Second market HP is heading into is E-services. This, like the server market has relatively medium internal rivalry and substitution due to the number of companies in the market. As more companies move to this market, again the substitutes and rivalry will increase. Entry into the market is high, based on the future and importance of the Internet. Buyers of E-services have specific needs of products and services that will need to customization to fit each customer. Supplier power is limited because products are based on existing technologies. HP will need to monitor and analyze these markets, along with any new emerging markets very closely to maintain a competitive advantage. Remaining diversified and flexible to be able to react quickly to the future markets will be essential to HP뭩 profitability. HP can not just equal its competitor's prices or products, but must continue to give value-added in order to differentiation products and services. Basically, HP needs to be one step ahead off its competition. HP뭩 goals, vision, and organizational structure lend itself well to this, especially how HP focuses on customer interaction and providing products/services to meet customer needs. Followed is a diagram illustrat...
