Corporate Divorce
On November 1st 2015 former tech giant Hewlett-Packard (HP) split up into two different companies; Hewlett Packard Enterprise and HP, Inc. Headquartered in Palo Alto, California, Hewlett Packard was originally founded in 1939 by 2 Stanford graduates, Bill Hewlett and Dave Packard. Like today’s iconic company Apple Inc, Hewlett Packard was founded in garage with initial capital investment of 538 dollars. HP first incorporated on 1947 and went public in 1957. According to Marketwatch.com, in 2014 alone, a year before it’s official split up, HP collected annual revenue of 111.48 billion dollars, about a billion dollars less than their previous year. While their net-income had been moving up and down, as of 2015 their revenue …show more content…
During 1960s HP was recognized as one of the symbolic founder of Silicon Valley, even though at the time, their semiconductors were mainly used on instruments and calculators. HP introduced inkjet and laser printers for the desktop on 1984, and registered HP.com as their domain name on 1986. Part of the reason HP became big was because of their constant acquisitions of other tech companies, for example, they bought Apollo Computer and Convex Computer on 1989 and 1995, respectively. In 2002 Hewlett Packard became even bigger by merging with Compaq Computer Corporation, which sold Computer hardware, software, and other related products. In 2010, it bought Palm, Inc. for 1.2 billion dollars, which eventually phased out Compaq. According to Fortune.com, after the split of Hewlett Packard into 2 separate companies, Hewlett Packard Enterprise now sells servers, software, storage, networking and other related products, while HP Inc. sells printers and PCs. HP had major downfall buying EDS (computer service …show more content…
Therefore HP’s split up so far seems like a good divorce, where both Hewlett Packard Enterprise and HP Inc. are expected to be happy separate. Hewlett Packard can now invest their resource in coming up with new and innovative ways to help other businesses, while HP Inc. can simply focus on improving the PCs and Printers business. The company could not have survived if they had not split up. Their sells were going down consistently since 2011 and the shareholders demanding something to be done. While the Hewlett Packard divorce look tough, especially when they had to let many of their employees go, it seems like it was the right thing to do for the business. Now the business has better chance of not only surviving, but also growing in the competitive
On November 1st 2015 former tech giant Hewlett-Packard (HP) split up into two different companies; Hewlett Packard Enterprise and HP, Inc. Headquartered in Palo Alto, California, Hewlett Packard was originally founded in 1939 by 2 Stanford graduates, Bill Hewlett and Dave Packard. Like today’s iconic company Apple Inc, Hewlett Packard was founded in garage with initial capital investment of 538 dollars. HP first incorporated on 1947 and went public in 1957. According to Marketwatch.com, in 2014 alone, a year before it’s official split up, HP collected annual revenue of 111.48 billion dollars, about a billion dollars less than their previous year. While their net-income had been moving up and down, as of 2015 their revenue …show more content…
During 1960s HP was recognized as one of the symbolic founder of Silicon Valley, even though at the time, their semiconductors were mainly used on instruments and calculators. HP introduced inkjet and laser printers for the desktop on 1984, and registered HP.com as their domain name on 1986. Part of the reason HP became big was because of their constant acquisitions of other tech companies, for example, they bought Apollo Computer and Convex Computer on 1989 and 1995, respectively. In 2002 Hewlett Packard became even bigger by merging with Compaq Computer Corporation, which sold Computer hardware, software, and other related products. In 2010, it bought Palm, Inc. for 1.2 billion dollars, which eventually phased out Compaq. According to Fortune.com, after the split of Hewlett Packard into 2 separate companies, Hewlett Packard Enterprise now sells servers, software, storage, networking and other related products, while HP Inc. sells printers and PCs. HP had major downfall buying EDS (computer service …show more content…
Therefore HP’s split up so far seems like a good divorce, where both Hewlett Packard Enterprise and HP Inc. are expected to be happy separate. Hewlett Packard can now invest their resource in coming up with new and innovative ways to help other businesses, while HP Inc. can simply focus on improving the PCs and Printers business. The company could not have survived if they had not split up. Their sells were going down consistently since 2011 and the shareholders demanding something to be done. While the Hewlett Packard divorce look tough, especially when they had to let many of their employees go, it seems like it was the right thing to do for the business. Now the business has better chance of not only surviving, but also growing in the competitive