Case analysis of HP and Cisco alliance

Introduction

A company’s development and growth is vital and fragile. It is dependent on the internal and external strategies incorporated in its operational policies. Growth is in terms of assets, sales, and ultimately the revenue increase. The interior plan is used in the firms for its internal operations and is not affected/effected externally. They ensure that processes run effectively while meeting the required standards presented to the external world. The apparent strategy is to cater to the external factors that affect the business from outside. They ensure that it is in an appropriate position to compete with other companies and sustainability in its endeavors. This paper entails an analysis of the HP-Cisco alliance in the technology field. It reports the alliance’s strategies, alternatives, and their appropriateness in a logical, consistent and coherent manner.

 

Important strategies

Client-centric strategy

It is putting all the necessary efforts and resources to ensure that the customer is fully satisfied. Since the customers are the pillar of any business, they must be affected positively. The relevant strategies had to be effected to ensure that there was little product overlap which meant high customer satisfaction (Kumar, 2014). A higher level of investment was done in people, capital and intellectual property to ensure comfort with increased revenue.

Business plan and metrics strategy

The two companies agreed to develop a joint business model and metrics to ensure the alliance succeeded. It involved both teams since there was no formal authority of one group over the other. Forming the business units as a team by both sides, ensured that perceptions from both sides were considered (Kumar, 2014). It entailed template for every individual in the alliance indicating the target market, products, and services among others. With the presence of differing cultures, a single model reduced the gap while building bridges and trust.

 

Best alternatives

Establishing joint objectives

The vital purpose of the alliance is the establishment of goals that mutually benefit both HP and Cisco. With these, it is easy to identify common approaches for dealing with the market. It mostly reflects on the revenue increase in each of the company. If both HP and Cisco focus on the joint objectives, there will be high productivity numbers. It will lead to value creation for the clients hence increased revenue for the overall alliance.

Understanding each other’s potential

Once HP and Cisco have identified/understood the possibility of one another, they can support each other. It will make them complement each other; hence Cisco and visa-verse can fill gaps left by HP. Once the holes are filled, potential clients are introduced in the market (Cloodt et al., 2010). Thus, a mutual benefit to the overall alliance.

Both alternatives are workable and implementable by HP and Cisco. It will see them get to higher levels with ease and fast hence overall growth and revenue collection.

 

Alternative strategies and recommended course of action

Performing the two alternatives is beneficial to the alliance. It has both benefits and shortcomings, and therefore a closer look is vital before their implementation.

  1. Understanding each other’s potential. It will help in the identification of gaps and strengths of a firm by the other and visa-verse. Both HP and Cisco can the identified gaps to add revenue to the alliance and overall productivity. It is however challenging since they might not have enough resources to fill the identified gaps (Kumar, 2014). The purpose of allying might be lost, hence the alliance failure.
  2. Establishing a joint objective. Once HP and Cisco form a common purpose, they pull together their efforts and resources. It will be for their respective benefits and the overall alliance. The combined efforts will result in increased productivity and revenue. However, having a single objective might outdo one company and favor the other. One of the two might take longer to catch up or fail absolutely (Cloodt et al., 2010). The alliance will, therefore, fail and collapse.

Recommendations

From the two alternatives, I recommend the establishment of a joint objective since both HP and Cisco deal with technological equipment. Therefore the aim to be made will focus on complementing each other and an overall capture of the global market. It is with a consideration that both firms had been involved in producing technological gadgets thus having a background in the technical field.

Consistency, coherence, and logic of the analysis

This analysis is relatively explicit since the crucial factors in question have been addressed. However, some of the minor assumptions have not expounded in a very satisfactory manner. From the information used, the issues have been raised and discussed. It is therefore factually correct considering it is from an evaluation of both HP and Cisco. These conclusions can be justified for they all rely on the information provided. They are ultimately based on the provided information on the alliance between HP and Cisco with an incorporation of logic and overall facts alliances.

In summary, the alliance between HP and Cisco highly depends on the strategies put before their integration. They must be valid and doable for the effective running of the coalition and total output and revenue increase and global sustainability. Logical and factual analysis is necessary to make sure that information is profound.

 

References

Cloodt, M., Hagedoorn, J., & Roijakkers, N. (2010). Inter-firm R&D networks in the global software industry: An overview of major trends and patterns. Business History52(1), 120-149.

Kumar, R. (2014). Managing ambiguity in strategic alliances. California Management Review56(4), 82-102.