HP Eyes the SMB Market

Hewlett Packard Company (HPQ - Analyst Report) is currently focusing on the small and midsize business (SMB) segment. This has prompted the company to enhance the HP Total Care portfolio, which is expected to enhance the productivity of these companies and at the same time reduce the negative impact on the environment.

This enhancement plan includes new products like two desktop PC’s and display, a new HP LaserJet printer helping to reduce the carbon footprint as well as the cost to the end customer, new server and storage devices for better protection of data, a networking switch and solutions to improve productivity, thereby reducing cost.

Many PC makers are targeting the SMB market, as it offers good opportunity for growth. The latest Lenovo all-new ThinkCentre A70z, is the first all-in-one desktop PC from Lenovo. The company is specially targeting the SMB segment to market this product.

SMBs help in the growth of an economy and offer considerable business opportunities across the globe. HP, although already well positioned to benefit from the growing small and medium businesses, is furthering its prospects in this segment by offering new products.

The company’s strategy seems to be to focus on one business segment at a time, augmenting the portfolio, building relationships and setting it on the growth path. SMB looks like the latest focus area.

A few weeks back, HP enhanced its printing line of business by an addition to the HP Latex Printing Technology portfolio. The newest addition improves the production capability of small and mid-scale digital print and sign shops and photo labs, without the corresponding negative impact on the environment.

This apart, at the recent PRINT 09 tradeshow, the company showcased its latest offerings in its Graphics Solutions Business. The company believes that these products address the $115 billion potential global market opportunity for digital color printing.

The printing business has not performed well in recent quarters and has come under pressure due to strong competition from brands like Lexmark International Group (LXK - Snapshot Report), Epson and Canon (CAJ - Analyst Report). The recent introduction in the category is a strategic move to attract new business.

We believe that with the gradual revival in IT spending and strategic business moves, the company is well positioned to achieve its fourth quarter guidance.