Globalization and technological advancement have enhanced the awareness levels of modern consumers and the growing competition among businesses have resulted in a shift of power from the hands of marketers to that of the consumers (Panwar, 2001).
Peter Drucker, the legendary management consultant stressed upon the need for innovation and established that a business enterprise has only two basic functions; marketing and innovation (Drucker, n.d. cited in Swaim, 2010).
In the context of present business environments, it is often said that change is the only constant today. The markets are so volatile that what may be of relevance today may turn out to be a total waste in the immediate future (Reuvid, 2005).
New product development is an integral part of all businesses today. The markets are dynamic, competition is fierce and the consumers are highly aware; all these factors compel businesses to keep offering something new and more advanced to their target markets.
Though HP is a trusted brand, there are serious internal issues internal to the company. These issues create the need for corporate restructuring at HP.
Rising global attrition rate of CEOs has put a pressure on the firms to think about this issue on a priority basis.