The Flight of the Kittyhawk

Group 8 Rohit Khanna Sahil Khurana Satbir Singh Saurabh Gaur Shankar Arora Siddharth Arora Siddhartha Ranjan 8/20/12

Hp culture deeply valued technological innovation as a keep to success. MBO and a decentralized organizational structure Top Management Support Project team not governed by the traditional development processes Project team shifted from main building to trailers Click to edit Master subtitle style in order to provide autonomy, find new markets and cultivate customer base. Strong development team Short Developing Cycle

Strengths

8/20/12

Weakness

Conflict between DMDs functional management and Kittyhawk development team. Aggressive Growth model Ignored already established markets( desktops and notebooks) and chased the unexplored market. High Price Improper Market Research Sense of Urgency

Heightened 8/20/12

Opportunities

Developing PDA and mobile computing markets Smaller storage device for game cartridges Unexpected customers-Japanese Kanji, manufactures of cash registers and digital camera producer

8/20/12

Threats

Seymour 1.8 inch disk drive Flash Memory Chips- low cost and more efficient PDA market failure HP Corvallis decided that Kittyhawk would not fulfil their future requirements First road-bump in the project

8/20/12

Market Approach

Adopted the right strategy- researched broad electronics industry Approached different as well as new markets like mobile computing and gaming The New Hill Strategy Ignored the desktop and notebook market Uncertainty w.r.t timing and consumer demand team decided against addressing the

The 8/20/12

Continued...

Went ahead with a new and unproven market of PDAs Improper Market Research Launching a disruptive and a revolutionary product in an underdeveloped market Overambitious and aggressive targets for an uncertain market

8/20/12

The Path Ahead

Option 1: Continue to pursue the ruggedness-based applications Pros

Kittyhawk had the right technology, proven product, and relevant experience . Limited additional development required . Cons The market was beginning to come together.

Potential customers must first realize 8/20/12 breakthroughs in other product components

Option 2: Create a superior 2.5-inch drive for notebook computers Pros

Potential for price premium . Cons Team has relevant technology and experience from developing 1.3-inch product .

8/20/12

Option 3: Produce a $50 drive Pros

Learning and success from initial Kittyhawk release can guide this initiative Cons Original passion, drive for building small, dumb, cheap disk drive

Regain support for inexpensive disk drive

8/20/12

What HP could have done?

Team should have followed the strategy mentioned in the project charter Should have allowed the markets to develop Should have focussed on the immediate needs of market( Nintendo) Should have framed realistic expectations for growth and revenue models have designed a product with flexible features and functionality

Should 8/20/12

8/20/12