The initial blog: https://blogs.ubc.ca/estebanflores/2014/10/05/silicon-valley-giant-hewlett-packard-to-split-in-two/
The giant in Silicon Valley, Hewlett-Packard (HP), is going to split into two public traded companies, Hewlett-Packard Enterprise and HP Inc.
The initial blog addressed that this move will allow each of the two companies to adopt a focused strategy and benefit HP as a whole. It also pointed out that HP will be able to put more effort into its hardware and service division and suffer less from the loss in the PC market. I agree with the idea that the move is beneficial to HP, but have my own opinions on the strategies the two companies are going to take.
Personally, the PC and printers division should apply a focused strategy and minimize its cost. Since companies like Apple and Lenovo have occupied the PC market, it is hard for HP to win the battle by new technology immediately. If it still wants to keep the division, dropping the price to attract customers may be a better option in the short run.
However, the target scope of the hardware and service division is broader since it covers almost all the aspects in technical support. Compared to the PC market, HP also have more opportunities in the computer services industry. Therefore, a more differentiation strategy is needed to develop the strength and keep its uniqueness.
Looking back on Apple’s success several years ago, it was disruptive innovation that made it the industry leader. With the move of splitting into two companies, HP should also put more effort into innovation to smooth the way for the long-term war.