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Hewlett-Packard: The Flight of the Kittyhawk

Hewlett-Packard: The Flight of the Kittyhawk. Case Presentation. Management problems/Issues. Business model unable to serve low -end new markets New Markets such as small forms of computing or products that utilized microprossors and made use of small hard drives

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Hewlett-Packard: The Flight of the Kittyhawk

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  1. Hewlett-Packard: The Flight of the Kittyhawk Case Presentation BUSI 4607 - Managing of Technology & Innovation

  2. Management problems/Issues • Business model unable to serve low-end new markets • New Marketssuch as smallforms of computing or productsthatutilizedmicroprossors and made use of small hard drives • Nintendo’s case • The organizationestablishment • The know-how technologicalskills, • The cultural biases, • The twoengineersexample. • The inapropriatestrategy • Introduce the Kittyhawk in twelvemonths, fromstart to finish, • Accomplish a break-even-time (BET) of lessthan 36 months, • Achieve a $100 million revenu rate in twoyearsafterlaunch, • To be the first 1.3-inch drive on the market, • Growfasterthan the disk-drive market to help HP become a significantindustry leader. Revenue growtharound 35 %. BUSI 4607 - Managing of Technology & Innovation

  3. Alternatives(They could have…) • Renegotiated a realistic Break Even Time with Spenner • (36  48 months) • Renegotiated a product introduction date of eighteen months instead of twelve. • Been able to start selling the product at $50 • Increased the sale price of HDD from $50 gradually as capacity and performance improves. BUSI 4607 - Managing of Technology & Innovation

  4. Suggested course of action(They should have…) • Targetted a low-end new market • Gone in with an emergent strategy • Let engineers be creative in their design such that they would be able to produce at prices requested by clients BUSI 4607 - Managing of Technology & Innovation

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