Bill Hewlett & Dave Packard
Prof. Thomas Diefenbach
December 12th, 2010
1. Introduction (background, strategic problem, outlook)
2. Contextual environment
3. Transactional environment
4. Organizational competencies
5. Strategy formulation, strategic options
HP was founded in 1939 by classmates Bill Hewlett and Dave Packard.
HP Company is an American multinational information technology corporation headquartered in ...view middle of the document...
It’s one of the few companies that could buy Palm and pull off a resuscitation of webOS into a viable phone that people might actually want.
In April, 2010, HP and Palm announced the acquisition under which HP will purchase Palm.
• The combination gives HP significant headway into one of technology’s fastest-growth segments with Palm’s innovative webOS platform and family of smartphones, plus a rich portfolio of intellectual property from the smartphone pioneer.
• It enhances HP’s ability to participate more aggressively in the mobile device markets. Palm’s unique webOS will allow HP to take advantage of features such as true multitasking and always up-to-date information sharing across applications.
• With webOS, HP will deliver its customers a unique and compelling experience across smartphones and other mobility products.
• Palm’s innovative operating system provides an ideal platform to expand HP’s mobility strategy and create a unique HP experience spanning multiple mobile connected devices
• For HP, it is a stepping stone into the world of mobile phones. With the acquisition comes Palm's proprietary operating system webOS, which was used in the Pre and Pixi phones.
• HP and Palm have a lot in common. Both companies have been very successful, both companies have iconic brands,as well as both companies have a deep desire to beat Apple, because Apple has consistently made fools of both firms.This creates a common goal that should keep the resulting combined company focused.
There are a number of reasons for the Acquisition:
• The key management of HP’s Personal Systems Group is composed of nearly all the execs previously running Palm, including HP’s Todd Bradley. So the business and operations of Palm is well understood.
• HP’s Windows Mobile phone business is dying a rapid death and HP would have had to totally revamp its product line in order to stay in the smartphone business.
• HP can leverage its production capabilities to get large volumes of product into the market at low cost.
• HP gets a substantial IP and patent base it can use as a defensive threat against the competition
• WebOS could easily be re-positioned for tablets and other consumer devices to compete with Android, iPad, etc. This is a key growth area for HP.
Who in the market wins and loses?
• HP understands it has to compete with all PC vendors who see the emerging use of smartphones as threats to full size PCs and in some parts of the world as primary internet devices. This allows HP to compete with these vendors more effectively.
• Google ,HTC and Nokia gets a formidable competitor it didn’t have before from HP acquiring Palm.
• HP has incredible ability to get devices to consumers, so the marketing channels will dramatically aid the deployment of WebOS devices
• Relatively unaffected by this acquisition will be RIM’s Blackberry and Apple’s iPhone, at least for the foreseeable future. They...