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The turbulence HP experienced in late 2010 extended through 2011, as the company made another CEO change late in the year. The internal instability has resulted in the lack of a cohesive business strategy or brand strategy, which threatens both financial results and HP’s reputation. HP has retreated from the mobile devices and tablets that make up more and more of end-consumers’ technology purchases. Lenovo is predicted to hit the number one spot in the PC market, layering further pressure on the consumer franchise. Meanwhile, HP’s shift towards Enterprise-level services and software has been perceived as slow with an inefficient acquisition strategy, while the company also faces an expanding, nimble base of competitors. With HP acknowledging that the organization is in the early stages of a turnaround, it will take time, effort, and focus to resolve the brand issues that HP faces as it grapples with both internal transformation and external improving customer perceptions. HP retains an incredible breadth of products and services across the full technology spectrum, and the recent “Make It Matter” campaign reflects a more centralized approach towards brand expression, but HP faces numerous challenges as it attempts to restore its reputation for innovation and foster momentum within the rapidly changing technology arena.
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