Friday, October 5, 2012

HP's Long, Slow Descent Accelerates

Way back in the day, and by day, I mean about ten months ago, Moving Brands posted their re-branding effort with HP. It was taken down about a day later after HP protested the release of the information.

Basically, HP was upset because the brand was much better than their current brand, and the fact that they had chosen to not implement the brand made them look stupid. This was the companies official line:
"HP is one of the world’s most valuable brands and has no plans to adopt the new logo proposed by Moving Brands. HP did implement some of the other design elements shown in the case study."

My response to it is the same response I would have now, so I shall quote myself.
I laugh in their face. HP has one of the least valuable major brands. People attach little to the name aside from recognition and omnipresence. It is like ABC or CBS. Those brands have almost no value aside from their ubiquitousness. HP needs to stop kidding itself.
The slow-motion train wreck continued in the coming months, and I of course followed it. In May, HP announced awful financial results, and Meg Whitman said that HP was "rebuilding" credibility. This made no sense, because HP has one of the world's most valuable brands. More articles popped up analyzing what I described as the coming catastrophe.

As with many situations involving large companies, it can take awhile before the effects of bad organization and management become apparent. The Internet is accelerating things, but even then, it can take many years. As is the case with HP. Sadly for HP, since it takes so long, when the problems do become apparent, it is frequently too late. Look at GM and Chrysler. People had been saying they were doomed since at least the late 1990's. If it hadn't been for the world exploding in 2008, both GM and Chrysler would be gone.

So what does that do to HP's "valuable" brand? It's essentially dead, as I said back in December. It's just that, unlike then, they now know it.

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