Globalization and IT Industry

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HP company is one of the America’s IT corporation whose headquarter is located in California at a place called Palo Alto in the United States. The company has specialized mainly in “developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services. Major product lines include personal computing devices, enterprise servers, related storage devices, as well as a diverse range of printers and other imaging products.” (Allen & Morton 1994)

It is good to note that, this IT industry in which HP corporation operates is highly globalized. This is based on the fact that, both software and hardware associated with this industry forms the integral parts of any global industry. Currently, this industry is being recognized as being one of the robust industries globally.

Compared to other industries or any economic facet, the IT industry has higher productivity especially in first world countries. This is the main factor that has made IT industry to be referred to as the main force of economic growth globally. This industry is characterized by insatiable demand as a result of large number of clients, be it enterprises or consumers. Another trait is economies of scale enjoyed by IT companies. (Blais, 2011)

In 1990s, computer hardware and software improvements made information access easy. IT used to provide communication networks that led to ideas, products and resource expansion amongst nations and people regardless of their location geographically. In the current times, as a result of IT revolution, IT has gained applications in all “aspects of life in contemporary industrial societies.” (Yip, 2003)

For the past 20 years, the spread of information technology along with its application has been very drastic. This is based on the fact that, for that past two decades, desktop PCs were only limited to a small number of individuals considered as being advanced. By that time, many people had the ability of only producing documents by the use of typewriters.

By that time, there were no text manipulation and storage. In the last one and half decade, bulky mobile phones were in use by only a few people particular in U.S. However, the situation has really changed in the current times. In the past decade, only scientists were using internet and the web, but currently, the two have gained applications everywhere. Another improvement globally has occurred “in fiber optics.

Fiber optics technology enables data, including voices captured in digital form, to be converted into tiny pulses of light and then transmitted at high speeds through glass fibers wrapped into large capacity telecommunication cables.” (Allen & Morton 1994) The main reason that has lead to this rapid IT globalization is as a result of declining computer costs, along with increasing digital technology processing power.

HP Corporation enjoys lots of resources in America, as well as in other countries in which the company carries out its significant activities. These resources have enabled the company to outwit its competitiors in the global market.

Some of these resources include access to inexpensive and steady power sources in U.S. inexpensive power sources has enabled the company to produce at a lower cost as compared to its competitors on the international market. (Porter, 1985) As a result, the company’s products are of high quality but costs less on the global market. In America, rarely do blackouts occur, hence, companies have steady production, as there are no interruptions as a result of blackouts and power shortages.

Availability of skilled and trained labor is another factor. Though the company spends more on paying its workforce, but the workforce has the ability of producing quality products eficiently. As a result, the company’s products are considered as being of high quality, hence sold at premium prices. Apart from providing quality products, through trained and skilled workforce, the company’s production processes are very effective and efficient, hence little or no wastes.

Another factor has been improved technologies as well as information technologies in America. Improved technologies like use of robots have enabled the company to have mass production, hence enjoying the economies of scale. Improved Information technologies like internet availability have also enabled the company to advertise its products overseas, apart from enabling the company to sell its products through websites, hence reducing the effects of middlemen,. (Allen & Morton 1994)

References

Allen, T. & Morton, M. (1994). Information Technology and the Corporation of the 1990s. Oxford: Oxford University Press.

Blais, S. (2011). Business Analysis: Best Practices for Success. New York: John Wiley & Sons

Porter, E. (1985).Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press.

Yip, G. (2003). Total global strategy II. Upper Saddle River, NJ: Pearson Education, Inc.

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Globalization and IT Industry

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