Hewlett-Packard Case: The Kittyhawk has never flown

In the early 1900s, Hewlett-Packard believed they had a chance to enter new markets. DMD, HP?s Disk Memory Division, was providing 2.5? hard-disk drives, notwithstanding it was behind otherwise competitors in this market. Despite spending effort and don?t succeed to reach the leader companies in established positions, HP?s managers explored opportunities in what they believed would be the next-generation needs. The company focused on the emerging Personal Digital Assistant market, which at that clip was thought to have a huge growth potential.

HP managers recognized the next-generation portable devices would need drives modester then the 2.5? that were world produced. So they worked to develop the Kittyhawk, a 1.3? drive promising would be the smallest in the world. The new technology offered to provide smaller and lower-cost solutions for customers, consequently the Kittyhawk would grow faster than the HD market becoming a monumental growth leader.

Setting up the StrategyGoing ahead, the CEOs set up a heavyweight project team and created a separate, financially self-directed division for the project to ensure that the technological breakthroughs would be developed. As a result a drive with incredible ball over resistance and low power consumption, weighting an ounce was created. This self-governing business unit was an intelligent strategy because this breakthrough present was fundamentally different to other divisions in values, working social organization and resources.



Not only the team had autonomy to develop the drive, but also to find new markets. On the other hand, HP senior management was the responsible for setting Kittyhawk?s tax tax income expectations. The CEOs failed when they had raised a U$100 million revenue rate in two years after launch, a value three times higher than the original forecast. harmonise to Christensen, because disruptive technologies initially serve emerging markets, in short they are usually financially unattractive and have small potential revenues. On the...

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