A witness in Silicon Valley-Hewlett-Packard Corporation (HP)

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established :

HP was created by Bill Hewlett and David Packard in 1939. The company is built in a garage in Palo Alto City, the first product is an audio oscillator, which is an electronic test instrument used by sound engineers.

Achievements :

Personal computer

Printer

Summary :

1. Among the many companies that have been bred at Stanford, such as HP, Cisco, Intel, Google, and Yahoo, Stanford is known as a prestigious school not only in the academic field, but also in the success of its business sector.

2. Buffett's investment guidelines: long-term stability, coverage for the public

There are roughly two reasons why 3.HP is fading: the mistakes of the leaders and the impact of "made in Japan/China"

4.HP product line is too long, hp internal very chaotic, further development burden is very heavy, and, HP many products are irrelevant, can not form complementary advantages, from this point we also understand why the importance of the ecosystem, why the major manufacturers in the main push ecosystem.

5. In order to make adjustments, the simplest and most cost-effective way for companies to restructure and restructure in the 90 's is to divest some departments from the company and go on a separate listing.

6. The quickest way to improve competitiveness is to buy a market, that is, to buy a company.

The fundamental reason for the disadvantage of 7.HP and Dell is that the problem with HP is that the cash flow is not fast enough, and that Dell's money can be more than two times a year, and HP only once, that is, even if Dell has a profit margin of only half of HP, it can get the same profits as the latter. This allows Dell computers to reduce the price of space is very large, it is easy to occupy the market.

8. In business history, similar events often occur, two companies in the competitive disadvantage of the merger, not only did not get the cumulative market share, and only to achieve the same amount before the merger, the reason is very simple, in the competition disadvantage of the company must have its management problems, if these problems are not resolved, After the merger, the problem doubles and the competition becomes more disadvantaged, further losing market share. It's like a few lumps of coal together as a bunch of coals, not shiny diamonds.

9. Must not be a quick buck

10.HP from a technology company into an electrical company, it was originally with GE, IBM, and sun technology companies such as competition, and now it is transformed into and Dell, SONY, Canon, Epson category of low-margin General Electric Company.

11.HP This Silicon Valley's most historical company is gradually forgotten, it in the Personal computer field lost to Dell, in the digital camera lost to Sony, Canon, Nikon, on the printer lost to Epson and canon, can be said to be a crushing defeat.

12. A technology comes out, European and American companies in the absence of Asian competitors, can make a time difference, earn a high profit. Previously, this time difference has been decades, and now has been shortened to years or even shorter.

13. The impact of manufacturing in Asia is not only to limit profitability, but also to involve Asian companies in developing business models and rules of the game.

14. In order to offset the impact of Asian manufacturing, European and American companies are encouraging and supporting OEM-like manufacturing in Asia to reduce their costs, but will do everything possible to prevent Asian companies from creating their own brands, as they pose a threat to them. It can be said that American companies like the OEM King Gou, not very much like Panasonic's help and Huawei's Ren.

15.HP's Fiorina story shows that if a company cannot pick the right person to steer, it costs a lot to replace him later, and from the helm we can see that Yahoo's CEOs fail to manage, leading to the decline of Yahoo.

The 16.HP rescuers, Hurd, seldom spend time doing those beautiful PowerPoint presentations, but writing and painting on the whiteboard, rarely preaching a sermon, and never talking in numbers.

17. In order to regain the market share of the PC from Dell, Hurd took the opposite approach to the Dell Direct sales model, and Dell's direct selling significantly reduced the cost of the distribution channel, making Dell the cheapest brand in the United States, andDell's direct-selling approach is now considered a successful experience. HP wants to learn Dell's direct marketing model, but not successful, to fit their own distribution model, the previous computer-type electronic products mainly by the electrical chain, these stores will provide general department stores do not have the service for large appliances, but today the PC is basically power on can use, scrap will not be bad, do not need what services , HP has strengthened its partnership with Wal-Mart, the largest retailer in the United States, and Costco, the largest member store, to bring its market share to the top of the world in a few quarters.

18. For the printer market, the introduction of color printers for digital cameras

Fortune: Electronic equipment manufacturing

Key Words : Manufacturing

PS: Read summary from Dr. Wu's "Top of the Wave", Nineth: The Witness of Silicon Valley (Hewlett-Packard Company)

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A witness in Silicon Valley-Hewlett-Packard Corporation (HP)