Strategic Case Analysis: Hp Palm Alliance

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Strategic Case Analysis: HP Palm Alliance

Strategic Case Analysis: HP Palm Alliance


In the wake of recent recession, the major companies have preferred to go into alliance with their counterparts. Following the trend, Hewlett Packard (HP) has bought Palm for a sum of $1.2 billion. Both of the firms had independently enjoyed good market share in the electronic product sector. HP is the undisputed leader in the market and has enjoyed a formidable position for a long time. On the other hand, Palm has faced problems since its inception in 1992 (DeGregorio, 2011). In this paper, the consequences of the strategic alliance, threats and opportunities for Palm, and the feasibility of the survival in the future are discussed followed by recommendations.

Mission of Palm Inc

The mission of Palm Inc. is to be the leader in service and marketing of computing equipment and consumables, as the customer is the most important for the company and therefore must be treated in the best possible way.

Vision of Palm Inc

The vision of Palm Inc. is to providing quality service and warmth in a timely manner in accordance with the requirements of our customers at a fair price.

SWOT Analysis for Palm


Palm's handheld devices are generally regarded by consumers as cost-effective and efficient.

Palm enjoys ever increasing customer base.


The company is facing a tough competition from Dell and Microsoft, the potential competitors.

Some computer products are less efficient than their traditional counterparts, with the different formulations.

Marketing budget is still low compared to that invested by the conventional foods.

There still exists a lack of information about the functionality of new handheld devices in general.


Rapidly growing market, driven by technological innovation enshrined in the mission of Palm and HP.

Intensified awareness of technological and cultural issues

Various marketing and advertising channels are underutilized.

There exists an opportunity to capture new markets after the alliance with HP.

The company, Palm HP can invest in underdeveloped segments, including PDAs, and cell phones etc.


Repurchases of competitors by large IT firms, such as Microsoft, and Dell

Brands and products are now being launched at competitive prices

The threat exists in the form of the new and emerging players in the IT industry.

Strategic Alliance between HP and Palm

After many rumors regarding the purchase of the legendary American brand of smartphones Palm, which has long wrong with the good times, then yesterday, the computer giant HP has announced the acquisition of the "modest" sum 1200 million dollars (which took them ... (DeGregorio, 2011).

The reasons for this move are very clear. Palm side, as I said above, it does not go well for a time, asking them as a person to his aid. On the other hand we have to HP, who has already entered the world at the time of tablets as mobile phones, but with little success, partly because they depend entirely on Microsoft and its software.

It is hoped that this move caused a stir in the network about the future of the company, because we know that when one eats up large proportions latter ends ...
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