Tim:
The labour rates in Eastern Europe may well still be competitive - but Holland? I don't think so.
Why would it take less time to operate a screwdriver in Holland than anywhere else?
Do you know what PC manufacturing is all about? What it takes, how to do it efficiently (price, time, quality as co-efficients)? If you would then you would not have made the statement earlier.
HP needs to assemble in Europe to be able to enter the EEC at no added cost, so it doesn't matter where they go and how they do it. I am sure that Europe will be receptive to the PCs, however, do note that last XMas HP decided to pull out of the German Consumer PC market (i.e. Pavillion platform). Why would they do that if the German PC market is Europe's largest?
I think that HP is not as great and flexible, innovative and magnificent as they tell you employees. It's nice that you have faith in the place you work for, but be a little more realistic. HP is a good company, but they are not making $ on their PCs sold, mainly because they are old. They are selling P54/166 at no margin to gain market share - that will hurt them once no one is willing to buy them any longer.
Also, in response to a general sentiment. People seem to have a fundamental flaw in their competitor analysis. Who is the No. 2 PC company? IBM. IBM has reengineered very successfully - they are now mean, clean and lean. Big Blue is now blue light in terms of workforce, but they are a power house, and they have to be reckoned with.
HP has got nothing coming against the likes of IBM. Where is HP in Asia, for example? IBM already has strategic alliances with people like ACER, builds their notebooks mainly out of and in Japan, and is very on-target with their product. Check out a ThinkPad, or an Aptiva - both very sexy products. Plus, they have a wonderful diversification strategy: they offer intel, CYRX, AMD, all under one roof aimed at very different market segments. That exactly is what HP lacks. Look how long it took IBM to get where they are - five years. And you are telling me that HP will be able to do it better? HP does not even know the pain IBM felt in falling from No.1 to where they are now. And look how hard it has been for IBM to come back as strong as they have.
If HP wants to conquer CPQ then they will have to beat IBM in the process of doing so, and I assure you that they will not be able to do so!
Best regards
K. |
