After reading the ousting of Leo Apotheker, I was checking back on why it does not work. With my numerous issues with HP (I had my PC shipped out for warranty a record 3 times in the past 3 months and it does not include 4 misdirections and numerous complaints to BBB), I wonder why the company has so much problem. So there is what upper management seem to have a poblem.
HP Is Having An Identity Crisis
http://news.cnet.com/8301-13924_3-20109667-64/hp-is-having-an-identity-crisis/?tag=content;siu-container
Not only did HP forget its root, it tried to change everything at once. It is like telling the whole company that we are not hardware but software. Thinking that the change is seamless and easily changeable. That is a significant issue.
As the article points out:
"You can't ignore legacy. [That's] what your value is," said Bob O'Donnell, an analyst at IDC. "They have a huge amount of value in the PC space. There's no way around it, it's just a huge, huge business."
The way HP made a dent and took market share was through hardware (especially their printers) and customer service. To me, they are horrific and numerous hardware issues are common in many blogs and postings. They seem to forget how they got big in the first place. They could say that the hardware business is not profitable but that seems to be naive when you consider it has a significant percentage of your revenues. I would have phase it out little by little.
Again,the article makes one key point:
"You just can't cherry-pick a sector that you want to be in and expect explosive growth. The genesis of the company was PCs and instrumentation. They don't have to be IBM [which sold off its PC business in 2005]. They can be different and still be very profitable."
That is the point I keep addressing time and time again to many companies.
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