New research published: "Who Benefits from the Disarray at HP?"
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HP customers, investors and business partners are beginning to feel like they are stuck in a bad remake of the movie "Groundhog Day". In the film, Bill Murray's character is stuck in time and keeps waking up to face the very same day, with the same challenges and problems.
Three of the last HP CEOs were forced out under some sort of a cloud (not the computing kind). After expelling Carly, Mark and Leo (these sound like hurricane names), the board rushed to hire Meg Whitman as CEO and appointed Ray Lane as the executive Chairman. The new team has a big mess to clean up. The Personal Systems division decision is likely to be reversed. The idea to get out of the PC business was probably not a bad one, but HP is totally unprepared for such a non-linear move. The Autonomy deal will likely go forward, but the acquisition better work, - HP has had a terrible track record of absorbing companies. The EDS purchase caused serious indigestion, and HP inherited a number of contractual issues with it. The list of HP acquisition orphans is long and unmemorable (except for high purchase prices).
In the meantime, competitors are circling the weakened HP turf. We believe, the company still has some time and room for maneuver, but a recovery will require signs of sure-footed, thoughtful, strategic decisions, - so far we have not seen any evidence of that, but one can hope...
In the new research report on HP, we dissect HP's current situation, assess chances for a sustained recovery and risks of market share loss to competitors in key areas such as processors, storage, software and services.
Other recent MGI Research reports include:
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