Industry snapshot: Hewlett Packard’s New Strategy Story

HP is a company that could use a good strategy story. Following its merger with Compaq, it now provides a huge array of products, ranging from printer toner to high-end servers. But today, 85% of its profits come from its printer business. New CEO Mark Hurd recently stepped in, following the departure of Carly Fiorina, and he is taking a very different approach than his predecessor. This is our version of his current story based on the initial reporting of Hurd’s strategy:

Hewlett Packard has a long, proud history as a technology leader. Today there are those who would say that our rich portfolio of products is unwieldy and unmanageable. They are wrong. We have the legacy of the HP culture from Bill Hewlett and Dave Packard—the accountability that made us one of tech’s most consistent performers. We can use that culture and give each product group control and responsibility to deliver the performance our shareholders expect. Our job today is to execute.

(adapted from Business Week, September 12, 2005)