Technology News: Commentary: HP's Plan To Revolutionize Consumer Electronics
By Rob Enderle
If someone had asked me five years ago if I thought HP -- which, at the time, was struggling in most of its key markets and offered only calculators to the consumer marketplace -- would be a power in this market, I would have been certain of my "no" answer. HP was a printer-workstation-midrange computer company with a strong tools business. It was about as far from a company like Sony as you could get and still stay in the high-tech segment.
Over the past two years, that focus has clearly changed. In looking around at Sony, Thompson Electronics, Matsushita, LG, Samsung, Philips and GE, only Sony talks about the kind of experiences that customers want, and, as I mentioned above, this is more of an exception even for Sony these days. HP, a firm that wasn't even in this class of company a few years back, is starting to showcase the results of its newfound passion for the folks who actually buy consumer electronics.
A very good analysis of the current competitive dynamics between hardware manufacturers in the computer and consumer electronics industries. Strong marks for Enderle's description of what ails Sony as well as overall understanding the competencies that players in the digital convergence field must develop and nurture to have any chance to succeed. Customer-centric vs. product-centric strategies play a very big role here and it's astonishing to see how few companies have yet adopted this. Advice: find those companies that still hold on to product-centric strategies and dump the stock ASAP as they're about to get the wake-up call of a lifetime!