BEIJING, June 19 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), analyses three major reasons in HP's emphasis on commercial inkjet.
While the commercial printing market is led by laser printing, the leading manufacturer of printing & image processing -- HP -- makes frequent moves in the commercial inkjet market. CCID Consulting's analyst, Mr. Deng Daozheng considers that these actions are based on a consideration of complete competition strategy. CCID Consulting concludes that there are three major reasons behind HP's moves.
Firstly, HP fails to master the core technology in laser printing. HP does not hold core technology in laser printing although it is in absolute predominance in the laser printer market. Production by other OEM brings many intangible technical cost and market risks. However, it is no doubt that the most practical and efficient method is to expand the product with advantaged technology.
Secondly, HP is driven by diversified user demands. The printing office market has been mature after a rapid growth in the past years with increasingly diversified user demands. HP will surely get more attention by designing readily marketable products according to these demands, and inkjet products based on "Edgeline" and SPT Technology could just meet the higher request to color print from middle/small firm users who always have budgeting considerations.
Thirdly, the search for the new growth point other than laser printer. HP possesses a high ratio in the laser printer market. According to statistics by CCID Consulting, HP has nearly 55% shares in laser printer market in 2007 Q1, which is far beyond other manufacturers. There is little remaining space to expand its market share further more. However, in the inkjet printer market, HP is competing vigorously with Epson and Canon. New technology could definitely get more user attention with initiatives in competition within the similar user awareness. The transformation to the family market with lower cost by scaled application should be the final target of HP though its latest products and technology mainly focus on commercial market.
The launch of commercial inkjet printing product that bases on Edgeline technology further enrich HP's product lines offering office users with wider choices in printing appliance, and it also exerts a subtle influence on users to a direction which is good for HP product development.
CCID Consulting considers that the advance in technology will provide wider choice for users on product procurement and also accelerate market competition positively to push other manufacturers to release more new product and new technology. However, it is difficult to impact the competition in the office product market in a short time, and as inkjet technology & product promotion poses a challenge to laser printing products, it is also a challenge for HP to change its product promotion strategy.
CCID Consulting suggests that HP should emphasis on improving market share of new product and to develop new technology rapidly within future marketing promotion for HP to stress on new technology dissemination with more user experience to let them experience the benefit of new technology personally.
About CCID Consulting
CCID Consulting Co., Ltd. (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.
Based on four major competitive areas of powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks.
CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://en.ccidconsulting.com/ .
