HP splitting itself into two firms is a result of bad acquisitions over the years that ultimately led them into further debt and free fall stock prices. The acquisition of Compaq cost the company 25$ billion along with Autonomy for another 11$ billion. Prices paid were costly and ultimately that led to a share drop of fifty percent. While major competitors continue to exponentially grow such as Dell, IBM, Apple, and Cray all HP can fonder is the major debt pile built. The only resolve to disputing the lack of positive cash flows, was to return to the HP way in a new innovative mindset.
HPI and HPE gives the company a way of advancing its current system to focus more on the next generation of technologies. This separation creates leverage, …show more content…
In order to compete in such an aggressive environment a larger weight is less effective than being two smaller companies that are nimbler. Management of HPI and HPE gives room to separate revenue into a more manageable process instead of intermingling multiple funds. Having two companies gives more room for improved cash flows and separate entities. After all, these are two completely different businesses. One that delivers a service and one with a product. Separating the two will bring more efficiency to providing the service or improving the product because each entity will be in charge of one thing, not both. Another positive about this is that even though they are two different firms they are still under the same umbrella so the product knowledge won’t leave the firm to another firm. If they need to they can still work together and have no fear that the other firm will take it to their …show more content…
Things that were only able to be done on a computer can now be done on smartphones sometimes more conveniently. The price of storage space and hardware is reaching virtually nothing at cost. Sales will plummet as this market becomes oversaturated with huge competitors. To remain static with an old strategy is only as successful as the market it competes within. Innovations aim to deliver the customer the most beneficial value, new technology creates new process. If a business cannot adapt to change it will fall off plummet into failing stock
HPI and HPE gives the company a way of advancing its current system to focus more on the next generation of technologies. This separation creates leverage, …show more content…
In order to compete in such an aggressive environment a larger weight is less effective than being two smaller companies that are nimbler. Management of HPI and HPE gives room to separate revenue into a more manageable process instead of intermingling multiple funds. Having two companies gives more room for improved cash flows and separate entities. After all, these are two completely different businesses. One that delivers a service and one with a product. Separating the two will bring more efficiency to providing the service or improving the product because each entity will be in charge of one thing, not both. Another positive about this is that even though they are two different firms they are still under the same umbrella so the product knowledge won’t leave the firm to another firm. If they need to they can still work together and have no fear that the other firm will take it to their …show more content…
Things that were only able to be done on a computer can now be done on smartphones sometimes more conveniently. The price of storage space and hardware is reaching virtually nothing at cost. Sales will plummet as this market becomes oversaturated with huge competitors. To remain static with an old strategy is only as successful as the market it competes within. Innovations aim to deliver the customer the most beneficial value, new technology creates new process. If a business cannot adapt to change it will fall off plummet into failing stock