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Tuesday, July 25, 2023

Ninestar's Downfall: A Doorway to Dominance for HP?



BTA turns to UFLPA, Ninestar slips, and HP stands ready to capitalize. Let's read between the lines

When the BTA stands firm with the UFLPA and puts a spotlight on forced labor, it stirs up a world of disruption for some - but for others, like our friend HP, it's the dawn of new opportunities. As the FLETF rolls out its ban on Ninestar Corporation and eight of its subsidiaries operating in Zhuhai, China, it has the whole business tech industry holding its breath. But in this sea of uncertainty, there's one company that might be grinning beneath the surface - and that's HP.

Now, why is that you ask? Let's dive into it.
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First off, as Ninestar - a major player owning 63.04% of Lexmark - is buckling under the blow of the ban, it's leaving behind a considerable void in the marketplace. And who better to fill this gap than HP, a titan already standing tall with its wide array of tech solutions?

Second, HP's robust supply chain, diversified far and wide beyond Zhuhai or even China, leaves it less vulnerable to the sort of geographically targeted ban that's rattling Ninestar right now. This geographical spread gives HP an advantage, positioning it to swoop in and meet the demands left unfulfilled by Ninestar's current predicament.

Third, this whole situation is prompting many companies to hastily seek alternative sources for the components they once sourced from Ninestar. With its proven reliability and established reputation, HP is a safe harbor for these wandering ships and is likely to pick up new partners and strengthen its market hold.

"I guess I'll be the one to ask, how did HP factor into the decision to ban Ninestar?" 

Is it just the beneficiary of a coincidental turn of events, or were there machinations behind the scenes that led to this advantageous position? Only time will tell. However, one thing is for certain - HP is well-positioned to capitalize on the changing landscape, illustrating once again that, in business, there is always a bigger fish.
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