So long, Carly

Back in early 2002 when Carly Fiorina was pushing a merger with the rival Compaq, many suspected that she may not make it through unscathed. Instead, she persevered and received the slight nod to merge with Compaq, much to the displeasure of Walter Hewlett. Today, with the announcement of her departure as a result of board disenfranchisement, Walter must be in a high spirits, feeling a vindication of sorts.

And while investors seem to be cheering alongside Walter by sending the HP shares up on the news, one can not help wonder whether things just got better or worse at the company. It's not just Fiorina that was the trouble for HP. For the true culprit, HP should look East to Texas, where Michael Dell is commanding his empire and has continued to fortify his position while HP has been grappling with its problems.

Unfortunately HP's computer business is not a cohesive unit as Dell's is. HP carries a number of other entities such a Compaq and Digital Equipment (from a previous Compaq take-over) which have come with some heavy baggages of their own as they were sewn into the HP culture. The Dell culture, on the other hand, is one of growth, focus, and steady vision. And with its present momentum, it's a Herculean task to match, let alone beat.

So as investors rejoice Fiorina's departure news today, they'd better be sure to keep their Aspirin bottles nearby. It's gonna be a long hang-over.

 

 

 

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This page contains a single entry by published on February 9, 2005 11:21 AM.

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