Printers and PCs have been the prime strengths of HP’s business model. HP has produced some of the finest in both categories. Now, as machines grow more and more compact and the lines differentiating them blurs, HP seems to be catching up to the trend. The company has declared plans that it will be combining its PC and Printer units into one organizational unit. This will be a radical reorganization of the company.
The plan is to combine the printer unit and personal systems group, two sections of HP, into one. As a result of this new approach of the company, the printing unit will cease to exist independently. And so, the chief of the printing unit, Vyomesh Joshi, will be leaving the company.
The new combined unit will be headed by Todd Bradley, who formerly is the head of the personal systems unit.
So what exactly is HP planning to accomplish with such a reorganization? Among many other benefits, one very clear benefit of such a reorganization is that HP will be able to better handle its financials. HP’s PC business has considerably slowed and PC sales may slump in the coming years. Printers, however, continue to be in demand.
So by combining the two units, HP can accommodate shall it face any abysmal financial results in either of the two. Besides, by bringing together the two units, HP can better push the innovation and research in both which are evidently very closely related. HP may even go on to offer combined PC, Printer products which can be attract many of HP’s enterprise customers.
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