HP Almost Damaged a Cardinal Transgression in the Name of Revenues

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HP Almost Damaged a Cardinal Transgression in the Name of Revenues

Currently after that, I have no idea about you, but I was instead surprised when the previous Head of state of HP informed financiers, consisting of myself, on a teleconference that they were mosting likely to sell their PC department, or perhaps closed it down. Yes, I know IBM decided to leave the lap-top business with their “Think Pad” and sold the brand to the Chinese company Lenovo, and yes, that appeared to help them Triplle168

Still, for HP it is a truly bad idea. When my dad was maturing they lived beside the Packard’s home in Palo Alto, and the founders of HP were very strong people with a solid vision of what the company should become. If you doubt this, read “Built to Last” by Collins, a teacher at Stanford Business Institution.

Alright so, anybody that has an HP computer system is most likely to become a brand name loyalist in time, and thus, buy most of their items from HP, how do I know this? Well, I am one myself you see. I also own a variety of their computer system peripherals, such as scanners, fax devices, copy devices, and so on. Whenever I most likely to buy a computer system item, I constantly appearance for HP first. No, I’m not an Apple follower, because I think their items are overpriced, and I do not determine with their brand.

There was a fascinating article in ComputerWorld on October 27, 2011 titled; “HP to maintain PC department, rejects spin-off idea – Whitman rejects course set by previous CEO Apotheker,” by Patrick Thibodeau. The article stated;

“Whitman categorically declined a strategy from previous CEO Leo Apotheker, to sell or spin-off the PC department. HP said it conducted a “data-driven assessment” of the impact of removing its Individual Systems Team (PSG) and wrapping up it was simply too important to its provide chain, purchase, and overall brand name.”

Currently after that, Meg Whitman is definitely correct on this, and I simply can’t think that HP would certainly also consider eliminating their PC line, so I am delighted to see Whitman taking the proper management role here to maintain the HP Brand name. In preparing this article, I did little research and I have been clipping articles on this subject and reading all there has to do with it I would certainly also suggest to you that if you’re interested that you return and read the same articles;

  1. New York Times “Ouster of Hewlett-Packard CEO Expected – And Companies Worth and Stock Price Have Plunged” by Quentin Sturdy and Nick Wingfield, September 22, 2011.
  2. Wall surface Road Journal “HP’s Customers Support Off” by Ben Worthen, September 2, 2011.
  3. WSJ “The Board Is HP’s Chief Problem” – September 22, 2011
  4. WSJ “Dilemma Unravels at HP over CEO” by Ben Worthen and JoAnn S Lubin, September 22, 2011
  5. WSJ “HP Defends Hasty Whitman Hire” by Ben Worthen, Justin Scheck, Joann S Lubin, September 23, 2011.
  6. WSJ “Whitman Takes Charge – Most recent HP CEO Attempts to Reassure Staff; Promises to Assess PC Business,” by Ben Worthen, September 24, 2011.

Did you know among the big questions in psychology is considered to be; “Will You Be There for Me?” In various other words this is something that people ask of other individuals in their individual connections, families, and is a key choice factor when people make a choice to support a brand, or buy an item. If HP jumps from the PC business after selling 10s of countless laptop computers and computer systems, together with numerous countless computer system peripheral devices, after that basically what they’ve done is they’ve responded to that question in the unfavorable.

If they quit production these items they would certainly have basically informed the customer that; “our company can’t be relied on, which we are not mosting likely to exist for you in the future.” Currently I recognize that the previous CEO of HP had come from SAP which is primarily a business software company. And he reasoned that HP makes more money in the software business section, compared to they do on the peripherals and PCs – certain, yes, I see that, and yes that makes good sense, they make more money as a portion of the sale of those items.

But why are we contrasting apples and oranges? Before retired life I remained in the car wash business, and the portion of profit we made cleaning cars as a solution business certainly had not been the like we made if we sold items for cleaning cars. However us to have either of those companies, we needed both sides of the formula. If all of us the all of a sudden quit selling either the items or the solutions, we would certainly be allowing down our customers that have grown familiar with our brand.

It’s definitely amazing that the previous CEO of HP didn’t recognize to stamina of “the HP tradition” or what their items imply to one of the most faithful brand name fans, in addition to their faithful worker groups in the various departments of HP. You see, to earn that degree of an error in business is truly frightening. Currently that is not to say that a business should not tremble points up from time to time change the way they do points, certainly they should, but leaving your customers high and dry is quite another point certainly.

HP can recuperate from this bad message to their customers under the management of Meg Whitman. I hope you’ll please consider this situation study in brand management.

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