In 2011, Hewlett-Packard CEO Leo Apothekar made the strategic decision to exit the personal computer (PC) business, but he got fired and incoming CEO Meg Wittman reversed that decision. However, sales of PCs have plummeted since the introduction of post-PC devices such as tablets, e-readers, and smartphones. In the first quarter of 2013 alone, total PC shipments fell almost 14 percent, and no one felt that more than leading PC-maker HP. The company’s PC sales fell 23.7 percent that quarter. Now, PC-makers are dropping prices—some more than 50 percent— on laptops and some are offering touchscreens to compete with tablets and mobile devices in an attempt to gain back market share. HP’s former CEO wanted to shift strategic focus more toward offering software to business markets. Maybe he had read the future correctly and was on the right strategic path. With the game-changing introduction of tablets, mobile technology, and social media, the future is not what it used to be. 2-9. Explain which product/market expansion grid strategy PC-makers are currently pursuing to deal with the threat of post-PC devices. Is this a smart strategy? (AACSB: Written and Oral Communication; Reflective Thinking)
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