In 2011, Hewlett-Packard CEO Leo Apothekar made the strategic decision to exit the personal computer (PC) business, but he got fired and incoming CEO Meg Wittman reversed that decision. However, sales of PCs have plummeted since the introduction of post-PC devices such as tablets, e-readers, and smartphones. Some people are now referring to PCs as PC-osauruses. In the first quarter of 2013 alone, total PC shipments fell almost 14 percent, and no one felt that more than leading PC-maker HP. The companys PC sales fell 23.7 percent that quarter. Now, PC-makers are dropping pricessome more than 50 percenton laptops and some are offering touchscreens to compete with tablets and mobile devices in an attempt to gain back market share. HPs former CEO wanted to shift strategic focus more toward offering software to business markets. Maybe he had read the future correctly and was on the right strategic path. With the game-changing introduction of tablets, mobile technology, and social media, the future is not what it used to be.

Questions 1. Explain which productmarket expansion grid strategy PC-makers are currently pursuing to deal with the threat of post-PC devices. 2. Research the current market information about PC sales as compared with post-PC devices for HP and its competitors. Do you think these companies productmarket expansion strategy needs to change?