What went wrong with HP and where is it headed? – Part 1

Hewlett-Packard, once known as the great asset to the technology industry and a great innovator, is now in the depths of dark and endless tunnel that is leading nowhere but disparity. In the last half a decade, things have gone worse for the company and this week’s layoffs have written the statement in crimson.

The company discarded 27,000 jobs in the recent events, that cumulates to somewhere in the neighbourhood of 8 percent of the workforce. This is a so-called turnaround strategy from HP CEO Meg Whitman to cut costs and focus on productivity. The thing to ponder here is how can you have productivity when there is no laborious mind?

HP has to admit that it has made some drastic decisions in the past one decade that have had even worst repercussions over the years. The shopping binge in the late 90s, early 2000s and even in the midst of the global crisis of 2008 have all concluded devastatingly.

‘Once upon a time’ there was a company called Hewlett-Packard that was known for its stubbornness in the science and technology. The company could never compromise on the research and development of latest technology and thrived on innovations and creating new markets. That technology company dwelled on new product developments and made itself a lab for new innovative products in every field spurring the new technology as we know it.

Then came dotcom bubble and PC hype. Windows became the next big thing and many companies like Dell and IBM turned their attentions to making PCs and laptops. For these companies it all made sense if they protruded into the computer industry. Dell is solely a computer vendor and IBM intelligently created Lenovo to cater to the desktops and laptops.

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Posted by Usman Khalid on May 26 2012. Filed under Business, Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.