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For six years, the Internet Nexus served as my technology blog, but I've since started blogging at the SuperSite Blog instead. If you're looking for the blog, please head there. --Paul

Monday, June 04, 2007

How HP Reclaimed Its PC Lead Over Dell

Wall Street Journal (paid subscription required):
Hewlett-Packard Co. is riding high today as the world's undisputed leader of personal-computer sales, but that's not how Todd Bradley found things when he joined the company in 2005.

Dell Inc. was the top PC maker that year, when H-P Chief Executive Mark Hurd hired Mr. Bradley to run the company's PC business. H-P's PC operations were barely profitable, morale was foundering and some investors were suggesting H-P get out of PCs altogether.

H-P owes that remarkable turnabout to something Mr. Bradley concluded within weeks of arriving at the Palo Alto, Calif., company: H-P was fighting on the wrong battlefield. H-P was concentrating its resources to fight Dell where Dell was strong, in direct sales over the Internet and phone. Instead, he decided, H-P should focus on its strength, retail stores, where Dell had no presence at all. H-P was neglecting that advantage, Mr. Bradley found as he visited retailers and H-P factories, hearing complaints about late or incomplete deliveries. He worked hard to fix the logistical snafus and build better relations with the retailers, helping H-P surpass Dell in world sales late last year for the first time since 2003.
This is a rather astonishing turnaround. It will be interesting to see whether Dell's recent and ongoing foray into retail stores will help change the dynamic, but I, like many others, wrote off HP during the Carly "trainwreck" Fiorina years.


[ Posted at 2:36 PM | Permalink ]


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