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Success Story of Hewlett-Packard (HP) | Profile, CEO, History, Founder, Founded

Sujal Singh

Introduction

Hewlett-Packard, commonly known as HP, is one of the most iconic technology companies in the world. Founded in a small garage in Palo Alto, California, in 1939, HP has grown into a global leader in personal computing, printing, and enterprise solutions. The company’s journey is a classic example of innovation, adaptability, and strong leadership—key ingredients for long-term success in the fast-changing tech industry.

This article explores HP’s business success story, covering its humble beginnings, major milestones, challenges, and how it continues to thrive in a competitive market.

The Humble Beginnings: A Garage Startup

HP’s story starts with two Stanford University graduates—Bill Hewlett and Dave Packard—who decided to turn their engineering passion into a business. With just $538 in capital (about $10,000 today), they set up shop in a one-car garage, which is now known as the “Birthplace of Silicon Valley.”

Their first product was a precision audio oscillator, the HP Model 200A, which was cheaper and more reliable than competitors’ models. Walt Disney became one of their first major customers, purchasing eight oscillators for the production of the movie “Fantasia.”

Key Takeaway:

Early Growth and the HP Way

By the 1950s and 60s, HP expanded into test and measurement equipment, becoming a trusted name in electronics. The company went public in 1957 and introduced its famous “HP Way” management philosophy, which emphasized:

This people-first approach helped HP attract top talent and maintain high employee morale.

Key Milestones:

The Golden Era: Dominating Printers and PCs

HP’s real business explosion came with its printing and personal computing divisions.

1. The Printing Revolution

HP’s inkjet and laser printers became industry standards due to:

By the 2000s, HP was the undisputed leader in printing, with competitors like Canon and Epson struggling to catch up.

2. The Rise of HP PCs

In 2002, HP made a bold move by acquiring Compaq for $25 billion, making it the world’s largest PC manufacturer (surpassing Dell and IBM). This acquisition helped HP dominate both consumer and enterprise computing.

Key Takeaway:

Challenges and Comebacks

Despite its success, HP faced major challenges:

1. Leadership Instability (2010-2015)

2. Declining PC and Printer Sales

With the rise of smartphones and tablets, HP’s core businesses slowed down. However, HP adapted by:

Key Takeaway:

HP Today: Reinventing for the Future

Under CEO Enrique Lores (since 2019), HP has embraced digital transformation, sustainability, and hybrid work solutions.

Recent Successes:

✔ Strong PC Market Share (#2 globally after Lenovo)
✔ Growth in Gaming Laptops (OMEN, Victus brands)
✔ Subscription-based printing (HP Instant Ink)
✔ Sustainability efforts (recycled materials, carbon-neutral printing)

Financial Performance (2023):

Lessons from HP’s Success

  1. Innovation is Key – From audio oscillators to AI-powered printers, HP never stopped innovating.
  2. Adapt or Die – HP survived the tech industry’s shifts by reinventing itself.
  3. Strong Leadership Matters – Visionary CEOs like Dave Packard and Meg Whitman drove growth.
  4. Customer-Centric Approach – HP’s products solve real problems.
  5. Diversification Reduces Risk – PCs, printers, servers, and services balance revenue streams.

Conclusion: A Legacy of Resilience

HP’s journey from a garage startup to a $30+ billion tech giant is a testament to innovation, smart leadership, and adaptability. While the company faced setbacks, its ability to reinvent itself keeps it relevant even after 85+ years.

For entrepreneurs and business leaders, HP’s story is a powerful reminder that success isn’t about avoiding failures—it’s about learning, adapting, and persevering.

Final Thought:

“The biggest risk is not taking any risk.” – Meg Whitman, Former HP CEO

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