HP is nowadays an International giant in the information technology industry. The company offers a wide product portfolio from personal computers (PC), notebooks, serves, storage, calculators, printers, scanners, fax, and digital camera to network management software. The company features a phenomenal growth history and has developed from a 'garage” with a working capital of $538 in 1938 to a leading global provider with $100 billion revenue.
Problem Analysis
In the wake of the recent recession, the major companies have preferred to go into alliance with their counterparts. Following the trend, Hewlett Packard (HP) has bought Palm for a sum of $1.2 billion. Both of the firms had independently enjoyed good market share in the electronic product sector. HP is the undisputed leader in the market and has enjoyed a formidable position for a long time. On the other hand, Palm has faced problems since its inception in 1992. In 2007, after persistent rumors of buyout, private equity firm Elevation Partners bought 25% of Palm for $ 325 million, allowing Palm to find a second wind. It was also the year that Jon Rubinstein, who had worked at the birth of the iPod from Apple, joined Palm to head its research and development department, while Apple unveiled the iPhone. The following year, Palm announces it will sell more PDAs and focuses on smart phones. She announced WebOS, its new operating system led by Jon Rubinstein, January 8, 2009. In June of that year, and four days before the release of Palm Lawn, Rubinstein was appointed CEO of Palm. Just like Steve Jobs who ended the career of Newton when he returned to orders from Apple, Rubinstein decided to abandon plans for Linux-based net book, the Foleo. Despite critical acclaim, pre-sales of Pixi, have not lived up to expectations. In this paper, the consequences of the strategic alliance, threats and opportunities for Palm, and the feasibility of survival in the future are discussed followed by recommendations.
Strategic Alliance between HP and Palm
After many rumors regarding the purchase of the legendary American brand of smart phones Palm, which have long wrong with the good times, then yesterday, the computer giant HP has announced the acquisition of the "modest" sum 1200 million dollars (which took them).
The reasons for this move are very clear. Palm side, as I said above, it does not go well for a time, asking them as a person to his aid. On the other hand, we have to HP, who has already entered the world at the time of tablets as mobile phones, but with little success, partly because they depend entirely on Microsoft and its software.
After a long series, of problems, Palm disappears as a company, and become part of the conglomerate Hewlett Packard as a mark but, as happened with Compaq after its acquisition and that it remembers little of it. Gradually HP Compaq has eaten and has disappeared from the market, creating the new paradigm of low-cost equipment and low qualities in the sub-Compaq are ...