Company Overview

The Hewlett-Packard Company is the most successful manufacturer in the high-tech industry, dominating the global PC market and broadening its lead over Dell (which it surpassed to become the largest PC-maker in 2006). HP has been able to build and maintain its market presence by staying on the cutting edge of rapidly changing technology while continually branching out into new markets. The company's offerings range from hand-held calculators, laser printers, and medical equipment to servers, enterprise software solutions, and IT consulting. HP acquired Compaq in 2002, in a deal that caused major controversy at the company, with shareholders including Hewlett and Packard family members opposing the deal as one that would destroy HP's culture. At the time it was speculated that CEO Carly Fiorina would lose her job in her attempt to remake the company, but she survived the controversy. Major restructuring followed the acquisition, but when the company did not perform as well as expected, Fiorina was forced out in 2005. In 2006, her successor, Patricia Dunn, was also forced out when it became public that HP had been spying on company insiders. Despite the scandal, HP took cost-cutting measures that included layoffs to increase net income by 159.

In 2007, its net revenue grew 14 percent and the employee population grew slightly. It was named in the top 50 (48) in Fortune’s Global 500 in 2007. HP also expanded its services in 2007 through the acquisitions of Mercury Interactive, Peregrine Systems, and Opsware Inc., all of which are expected to lead HP toward the domination of the Business Technology Optimization (BTO) software field.