Consider the case below.

Hewlett-Packard Co. and Dell Inc. are unveiling slim "ultrabook" laptop, stepping up competition with Apple Inc.'s MacBook Air.

Hewlett-Packard introduced a $1,400 laptop called the Envy 14 Spectre, which packs a 14-inch screen into a compact chassis encased in black. Dell, meanwhile, is preparing to release its own take on the ultrabook -- an industry term created by Intel Corp. for light, thin laptops.

Personal-computer makers are counting on ultrabooks to challenge the MacBook Air, Apple's best-selling laptop, which is less than an inch thick. Still, Hewlett-Packard is not trying to compete on price: The new Spectre is $100 more than a MacBook Air with a 13.3-inch screen.

Hewlett-Packard is emphasizing the laptop's premium features and design, a bid to reach the "savvy fashionista" market, said Page Murray, a vice president of marketing at the company. "There's always someone who wants to win the race to the bottom," Murray said. "It usually ends with a splat."

The Spectre features a glossy black-glass lid that sits atop a silver glass palm rest and finger-sensing pad. The computer has an extra-bright screen, enhanced Beats Audio sound and a version of Adobe Systems Inc.'s Photoshop software. It weighs less than four pounds and can run for nine hours on one charge.

(Adapted from Ricadela, 2012)

- In your viewpoint, what is the generic strategy that you recommend to HP's Envy 14 Spectre to address its target market segment and competition? Provide your justification.