One of the leading technological pioneer, Hewlett-Packard, has made the decision to split into two companies, separating the PC and printer business from its cooperate hard drive and services operation. Hewlett-Packard has a long operating histories and they are looking for a way to maintain that statute while become more nimble to keep up with the fast and competitive technology companies. However, in recent years, hp has been defeated in many ways by the dominating apple and microsoft, no matter it is the research and development or the marketing campaign, apple and microsoft always hold the comparative advantage against Hewlett-Packard. The demand for hp PC dropped drastically within 10 years. Many people questioned, why doesn’t the company just sell the less profitable PC and printer sector, and focus on the computer servers. I don’t agree on the decision to solve sells decline problem by splitting into two. The company really need to focus on developing a strong market segment and but overshadowed by other dominant PC companies, and it is their last attempt to save their fortune. The company’s declining sells really concerned Meg Whitman, the CEO of hp, and she has launched a restructuring plan to layoff thousand of employee and eliminate other costs and try to deviate into the a more rewarding and specialized cloud software. If hp wants to stay in the market of pc they will have to develop something new and appealing to the public.
http://fortune.com/2014/10/05/hewlett-packard-to-split-into-two-companies/
http://online.wsj.com/articles/hewlett-packard-plans-to-break-in-two-1412530028