Sunday, November 13, 2011

B2B business model for Hewlett Packard

I think everybody know this brand, HP (Hewlett Packard), the IT company that produce variety of IT products, printer, notebook, servers, storage, switch, etc. Basically this company is seems to be B2C business, but actually, HP also have B2B business for cooperate customer in every product line and this business model is very successful.

For B2B model, HP have different service level for cooperate customer in different country. Regarding to HP Thailand, they have two main services which are "reactive" : service customer once the problem occur and "proactive" : service for reducing the possibility of the problem occuring.

if cooperate customer buy proactive service, HP will assign technical service engineer to assist that customer, he/she will take role as account support consultant for IT issue, planing and suggesting everything that can improve customer's system performance. Absolutely, this kind of service is very expensive but a lot of non-IT cooperate customer willing to pay for this. Beside of the revenue, if the service engineer do very good job in consultant, HP can increase trust and royalty from cooperate customer which leads to a lot of return in the future. In the other hand, if service engineer's performance not that good, HP might struggle with losing a huge money. It's a trade-off for having this kind of B2B business.

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