HP Inc. CEO Weisler Critiques Xerox Dealer-Acquisition Strategy

HP Inc. CEO Dion Weisler

CRN recently interviewed HP Inc. CEO Dion Weisler, who commented on HP Inc.’s recent breakthrough quarter – with both the firm’s PC and printer groups reporting increased revenue – as well as on rival Xerox’s strategy of spending some $100 million acquiring multi-brand office-imaging dealers and converting them to Xerox-only dealers (see story here).

“I don’t think you can buy customers,” said Weisler. “I don’t think buying share is the right way to run a business. The right way to run a business is to have an incredible value proposition that is sustainable, where it makes sense economically and technically solves a problem for the customer.”

Weisler stated that the Xerox strategy “might get a short-term boost in performance.  It doesn’t necessarily stick because a customer only ever sticks around if you are adding value.”

Weisler’s said HP’s approach is to “build incredible innovative technology rather than buying channel partners – effectively then competing with them. We don’t want to be in competition with our partners.”

The HP Inc. CEO also commented: “If I am a channel partner, I would be thinking twice about whether I want to be working with a company that is out there buying my competitors and competing against me every single day, as opposed to what we are doing, which is moving from 80 (percent) to 87 percent (of total sales) with and through the channel. As long as you feel confident that you have the right technology, you have the right value proposition, and the right economics, you will win the long game.”

Weisler also stressed that securing HP printers and PCs will be a key strategy: “We are deploying security across both printing and personal systems. We are going to invest heavily in this market below the operating system, at the operating system, and above the operating system.”

As for HP’s strategy of disrupting the $55 billion copier market, Weisler says HP’s new and existing channel partners are “really falling in love with our A3 product portfolio. The promises that we made around A3 are really resonating, not only with our partners but with end customers.”

HP Inc. is scheduled to complete its acquisition of Samsung’s Printing Solution group – now called S-Printing Solution Company – later this year.

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