Outsourcing PC manufacturing allows HP to focus on strategic core competencies, including supply chain design, newproductand services development, supplier management and customer relationship management.
By contrast, Dell competitors Apple and Hewlett-Packard have long concentrated spending heavily on designandnewproductdevelopment, while relying on overseas contract manufacturers to build their machines.
Many companies are still learning how to handle new (open, user-led, design-led, service oriented) innovation management practices that now characterise productand service development.