Hewlett-Packard Company, more commonly known as HP, is a multinational technology corporation that provides software and hardware services for its customers. Due to HP’s struggle to compete in the new market of mobile and online computing, It has been announced that the company plans to split into two sections: computer business and services operations. According to a Wall Street Journal, the split is being enforced in order for the company to allocate more of its focus towards corporate services.

In present-day, HP has over 300,000 employees, so this separation would significantly reshape the company’s structure. HP will need to innovate its products in order to compete against companies selling smartphones and tablets like Apple and Blackberry. The low demand for products like personal computers and printers has highly affect Hewlett-Packard’s sales. By splitting into two different sections, it will be able to specialize and target one specific market. Furthermore, the company announced that it will release between 11,000 to 16,000 employees before separation. HP’s inconsistency has been illustrated through their CEO’s, which have all either been fired or resigned since 2011.

In my opinion, this is a bold, and rather risky move. HP may end up shutting off one of their sections due to lack of customer interest. This might just be another example of IBM, when the multinational company inexplicably shut off their PC operations. On the other hand, targeting one specific market might help HP re-focus on certain products that customers are growing exceedingly interested in.

References:

http://www.mercurynews.com/business/ci_26668203/report-hewlett-packard-break-into-two-companies

http://www.theglobeandmail.com/report-on-business/international-business/us-business/silicon-valley-giant-hewlett-packard-to-split-in-two-report/article20938032/

http://blogs-images.forbes.com/ericsavitz/files/2012/12/hp-logo-divided.jpg