New HP Hardware, Software, Services, and Printing
n late 1995, John Peter, a marketing manager of Hewlett-Packard Asia Pacific Limited, was evaluating the division's strategic options for doing business in Vietnam. The United States had lifted its embargo on Vietnam in February 1994, and the country had normalized relationships with many other countries, including China. The current economic development in Vietnam is rather slow and limited, and the infrastructures and the political-legal systems appear to be underdeveloped. However, the long-term prospects appear very bright. Hewlett-Packard's current operation in Vietnam is limited to the distribution of a small range of its products through local intermediaries. John needed to recommend whether HPAP should enter the Vietnam market in a more strategic fashion. If so, what form of market entry should be adopted, and what detailed implementation plans should be developed?
To enter Vietnam market, HP could have a direct presence in Vietnam by setting up a subsidiary or representative to provide marketing, sales support, and management services. Regarding to the Vietnam government, they planned for “IT-2000 Program” to create a national data communications network for almost all government personnel and the financial sector. The government hopes follow in Singapore’s footsteps and accelerate the country’s entry into high technology. Furthermore, they also provide each secondary school and university student. Thus, HPAP may take this chance to bargain with government to subsidiary HP computers, such as personal computers, minicomputers, RISC workstations, and mainframes enter to Vietnam. Since government support HP, it had developed strong reputation and brand identities which will be the tops in Vietnam since the industry is still its infancy and don’t have any competitors in the market. Besides, the level of education was comparatively high and there are 70% of the citizen is under 35...
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