This is like a snake in the game in the ultimate level of the protagonist of the game, a greedy seems to have made it impossible to turn around, although faced with a wall is still open; this is the Global 500 strategic error of the sample analysis, the global HP is for the past 20 years of greed to pay the same
Man I reporter Sun Hongchao Jin Ye
In the mergers and acquisitions market wantonly waving checkbook HP finally to face the digestive problem, once created the” snake swallowing elephant " myth of HP in a voice of doubt still completed a pile of seemingly farce crazy acquisition, is big and strong or strong and big? Apple path or IBM track? This became a curse that plagued HP.
10 years ago, HP'S then CEO Carly Fiorina after hard negotiations, finally helped HP successfully acquired Compaq in the PC market at that time more powerful than their own company, staged a snack big show. And this is the luxury of the acquisition also pushed HP in a few years to become the world's largest PC manufacturer.
But apparently, a fat mouth is always just a good imagination, HP in the Carly successor Mark·Hurd's desperate efforts, also just let Compaq this huge giant in the HP stomach more than a few years, and after the fall of the sexual scandal, the new CEO Lee Aike can no longer tolerate the PC Department's low profits.
This is the most beautiful decade on the HP digital, but the worst decade on the outlook.
In this 10 years, the slogan of HP is "acquisition, acquisition, re-acquisition", in the four sides of the enemy at the same time, HP unrestrained stretched his front, in its long product line, every link is facing a strong and powerful challenge.
In the high-end enterprise market, HP and IBM competition; in the PC industry, HP and Dell, Lenovo, Apple competition; on the mobile side, HP and Samsung competition. In addition, it is also a big machine. And these companies, known as HP rivals, but mostly focused on a particular area.
Now, in the field of mobile internet, Apple advantage alone; in the field of PC, Lenovo rising momentum; IBM is also out of the shadow of the PC business, the market value of this year was more than Microsoft.
Obviously, if this continues, HP will only be weaker, the reality forced them to make a choice in many fronts. So HP chose to embark on a similar path with IBM.
In 2011, HP officially announced the split PC business, marking after 2005, HP will follow in the footsteps of IBM and strive to become a first-class software service provider.
Ironically, there was subsequent news that Hewlett-Packard would name Compaq the spin-off of the PC division.
One critic pointed out: "Hewlett-Packard is the current set of errors of the United States enterprise-stupid, lack of innovation, excessive expansion, no real sense of leadership."
When HP bought Palm in 2010, many people thought the company had gone mad. At the time, Hewlett-Packard did not hide his purpose, but instead used the most typical boastful tactics, big publicity of the considerable size of the transaction.“Palm's innovative operating system provides the ideal platform to help expand HP's mobility strategy and create a unique HP experience for multiple mobile connected devices, " said HP's official website. That's what HP Personal Systems Executive Vice President Bradley said.
The words are still on my lips. Now HP says they are giving up their efforts to monetize the mobile market, killing the webOS-based tablet and mobile phone business-which they had hoped for in Palm, which now looks ridiculous.
Only an over-inflated enterprise like HP would do such a $ 1.2 billion deal during the recession and then give up completely after just 16 months. In another battleground, Hewlett-Packard, which has been crying out for its products to compete with iPads since February, has now gone dark.
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Even a broken relationship has a beautiful beginning.
Hewlett-Packard and Carly at first sight in 1999, when Carly had just picked "Fortune" magazine” America's 50 businesswomen" ranking, with the name of Hewlett-Packard, Carly the name soon as a rock star as a household name.
In a speech a few years later, Carly said: "after coming to the company, I know very well what the new trend is, the technology industry is in an era of change. In our competitive computer age, compatibility between products becomes a must, in which case solutions are critical.”
At that time, with the success of IBM's service-oriented transformation of Guo Shiner, the computer services have much to prove. Carly decided to reinvent HP. To this end, Hewlett-Packard set up the internet division to e-commerce as the Enterprise Center strategy, integration of the company's original hardware and software and services.
"Who are our enemies? Who are our friends?"While Hewlett-Packard faces different competitors in several of its areas of expertise, IBM is the only company that is truly at the forefront of its approach. And if alone on their own, in the foreseeable future, HP has little hope of surpassing IBM. In 2000, the latter had a market value of $ 200 billion and annual revenue of $ 88 billion, almost twice that of Hewlett-Packard.
Guo Shina is the angel of IBM, but it is the devil of Carly and HP.
M & A became the only option for HP to expand, and the next task was to see who was the right acquisition target. In 2000, HP began to engage with the consulting department of PricewaterhouseCoopers.
Carly's wishful thinking is to merge 31,000 consultants at PricewaterhouseCoopers and 6,000 consultants at HP to create HP's future.HP even intends to acquire Apple. But they quickly dismissed the idea.
Until now, HP seems to be on the road to the original, but the form has gone straight.
Carly's final decision was to buy Compaq, which was second in the PC market at the time, and Carly's reasoning was to expand HP's diversified operations. Carly was more focused on the acquisition of Compaq IT services. Because Compaq before the merger in the IT consulting services business income ratio reached 33%, the combined capacity of 40,000 consultants is not inferior to the day of PwC, once the merger, the new company's service consultant number is 65,000, and IBM's global service specialist is not more than 15 million.
But from future development, the decision did not achieve the desired effect.
It is not well known Compaq company at the time is a respectable name, a lot of IT companies such as the leader of the company took over the Apple CEO Cook and other work experience in the company.
In February 1982, Compaq company was established, in September 1986, the first to launch the first 386 desktop personal computer, and since then became popular. In 1991, Compaq began to produce low-cost popular computer, to 1994 PC delivery reached 4.83 million units, for the first time more than IBM's 4.24 million units, and became the PC industry king. In 1998, the smooth-flowing Compaq successfully acquired the United States Data Company DEC and reached the peak of his career. The acquisition now looks not so rational, two in the sales system and corporate culture of the enterprise can not be merged, resulting in Compaq company in a short period of time simply can not digest this huge monster.
The disaster happened while Compaq was hesitating. The internet bubble burst, the entire high-tech industry into the quagmire. Almost all of the company's stock prices have fallen, and Compaq is in a much worse situation, due to the decline of the personal computer market, as well as several other large-scale acquisitions have left a serious After-Effects, Compaq's share price fell by more than 60%. The directors of Compaq can't stand it anymore. they are eager to forge some kind of alliance with another computer company, even if it is bought by a merger.
At a time when the need for new breakthrough hp and Compaq hit.