HP:a struggling giant

Once being the symbolic founder of Silicon Valley,and  the world’s largest PC vendor by unit sales in 2012,HP are now struggling because of it ineffective merger.

From statistics,HP merged 88 companies in the past 11 years,spent more than 66.9 billion dollars(http://h30261.www3.hp.com/phoenix.zhtml?c=71087&p=irol-mergers).However,these mergers did not make HP better.By contrast,HP suffered a lot from merging companies with different cultures and fields.Especially after its merger with Autonomy in 2012,its stock fell to decade’s low.

Obviously, HP is suffering from the lost of culture and direction.They tried to expand into different fields but through a inorganic way,which caused great culture conflict.From the blog linked here,(http://blogs.hbr.org/2008/05/will-hp-and-eds-clash-over-cul-1/)There is a clear example when HP merged with EDS.From the auther’s word,EDS mainly relied on individual talent.However,HP’s culture encourage people to work in group.Because of this,HP and EDS employees encountered huge disagreement.Similar situation happened almost every time when HP merged a new company

HP are always changing their direction.For instance,they merged Palm to develop smart phone,but quit it almost right after the merger.They merged so many companies that do well in different fields,becoming a “giant”.But this “giant”is struggling because they don’t have clear customer segment and key activities.

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