Hewlett-Packard is an information technology company from the United States, was established in 1939. HP mainly focused on the production printers, digital video, software, computer and information services, and other services. Hewlett-Packard’s management seized the opportunity to grow by attempting to leapfrog the competition. In June of 1992, the Kittyhawk was published that was the smallest hard disk drive in the world. However, at the end of 1994, HP withdrew Kittyhawk products from the market. The reasons why the Kittyhawk was failure have four points in this case.
The one of problem of market is market positioning is too high that leads to a mismatch of product value and market demand. The DMD had started new challenge under the leadership of Spenner who was the general manager of the DMD. In 1992, Spenner considered that they need to create something to get rid of a competitor based on succeed market of 5.25 and 3.5-inch, which is the Kittyhawk, 1.3-inch drive. He believed that a disk drive could be used not only in the computer market, but also to be used for any one microprocessor. In the future, computers can be held in my hand. Kittyhawk hard drive was a technology innovation of computer. The market was focused on PDAs without the desktop and notebook computer part. Spenner convinced that they have to create their own PDA product that would be a big market. Therefore, they set a high goals for themselves: accomplish a break-even time of less than 36 months, achieve a $100 million revenue rate in two years after launch and be the first 1.3-inch drive on the market etc.. After they followed an exhaustive investigation of the PDA market, they set up an ideal and successful result, not make a good risk management for a new product that will put into the market. On the other hand, the Kittyhawk was a small, dumb and cheap product. Due to the PDA market is high costs market, as a product, the Kittyhawk had invested a lot...
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