Saikat Chaudhuri - Faculty Research in Knowledge@Wharton

The Microsoft Effect: Will Google Become What It Fears?

Tue, 20 Dec 2011 16:05:55 EST

Former Apple CEO Steve Jobs once warned Google co-founder Larry Page that the search giant was dangerously close to becoming another Microsoft -- that is, a company spreading itself too thin by trying to do everything. In recent years, Google has grown from being simply a search engine to having a hand in a range of sectors, an expansion that some worry will make it more difficult for innovative ideas to come to the surface. How can Google avoid some of the missteps made by Microsoft during its rapid expansion? And what can it learn from Microsoft's successes?

The New Software Pricing Model: Can the Older Giants Compete?

Wed, 09 Nov 2011 15:16:32 EST

Cloud computing is not only changing how users access software applications, it's also upending the pricing model for software products. Fading fast are the days when software packages were sold in boxes with a one-time, perpetual license fee. Instead, consumers and businesses are increasingly turning to subscription models and are buying only those applications they need for particular tasks rather than broad, general-purpose suites. How are Microsoft, Oracle and other established companies that have traditionally relied on the boxed approach adapting to the new reality?

Life after Steve Jobs: What to Expect from the Next Generation at Apple

Wed, 12 Oct 2011 14:52:54 EST

The death of Apple co-founder Steve Jobs jolted the tech industry and prompted questions about where the visionary company goes from here. With Tim Cook now at the helm, the company is expected to shift from a focus on one figure at the top to more of a team approach. But can Apple sustain the culture of innovation that Jobs cultivated -- and continue its string of hits in an increasingly crowded market?

Upheaval at HP and Apple: What's Next for Tech

Wed, 31 Aug 2011 15:20:29 EST

It's been a month of seismic change for the tech sector. Hewlett-Packard, the largest computer and printer maker in the world, may begin to transition away from hardware by jettisoning its PC division. Meanwhile, Apple is facing the end of an era, with the announcement that visionary leader Steve Jobs is relinquishing his role as CEO. Knowledge@Wharton asked Wharton management professors Saikat Chaudhuri and David Hsu to discuss the outlook -- and future opportunities -- for HP and Apple.

The Innovation Gap: As Product Cycles Turn, Nokia and RIM Scramble for Market Share

Wed, 08 Jun 2011 14:55:03 EST

Nokia and Research in Motion are the latest tech companies to be caught in an innovation gap: Both are touting "next big thing" smartphones that are as much as a year away, while hoping to convince customers to continue buying their current -- in some cases soon-to-be-obsolete -- devices. To minimize losses, Wharton experts say, the firms should explore new markets and pricing schemes for the old products even as they try to maintain their presence in the rapidly evolving smartphone arena.

Is Google Stuck in 'Perpetual Beta'?

Wed, 30 Mar 2011 14:25:28 EST

Last month, Motorola's Xoom tablet launched on the Verizon Wireless network. Soon after, complaints began to surface that the tablet's operating system -- designed by Google -- was prone to crashes when running third party applications. Experts say that while Google's typical strategy of launching new products, and then perfecting them according to user feedback, might work for Gmail and other online products, it doesn't translate well to hardware-based devices like smartphones. In fact, this "perpetual beta" mode, they say, might become a handicap as the search giant moves into new markets.

The NYSE-Deutsche Börse Merger: Building a Powerhouse or a Dinosaur?

Wed, 02 Mar 2011 15:47:44 EST

The proposed merger between the New York Stock Exchange (NYSE) and Deutsche Börse (DB) could mean big changes for the American icon, which heralds the opening of the markets each day with the ring of a bell. Although experts say an NYSE listing is still the sign of a blue-chip company, exchanges are struggling to remain relevant in a high-tech financial world. Similar pacts are proliferating between other exchanges as the organizations try to stay one step ahead of an increasingly interconnected global market. Can a combination of DB's business might -- and NYSE's marketing panache -- turn the tide?

Can Skype Go Corporate?

Wed, 16 Feb 2011 15:29:54 EST

Right now, Skype is a go-to service for far-flung families and friends trying to stay in touch. It offers free or low-priced calls and the chance to converse face-to-face via a webcam. But the company, which is widely expected to launch an initial public offering in 2011, wants to move into the business communications market and become a place where deals are made by CEOs and rank-and-file employees alike.

A 'Prudent' Team Player: Germany Asserts Itself on the World Stage

Tue, 23 Nov 2010 15:27:40 EST

With Chancellor Angela Merkel's center-right coalition marking its first-year anniversary, Germany is in a state of flux -- doing relatively well in an economically troubled world while facing a challenging future that will test what it hopes is an invincible, export-driven growth model that has rankled more than a few of its global trading partners. Meanwhile, German voters are increasingly unhappy that the country is footing much of the bill for what they see as irresponsible behavior by fellow eurozone members.

Tablet Wars: Can Rivals Unseat the iPad?

Wed, 10 Nov 2010 14:15:08 EST

Apple has essentially had the tablet market to itself since April 30, the day the first iPads were sold in the U.S. But that is about to change, as companies including Research in Motion, Samsung, Barnes & Noble and Dell introduce handheld computers of their own. Although Apple's head start is formidable, experts say the iPad is not invincible. But competitors will still face major challenges in cashing in on the tablet craze.

Can HP's New Leadership Create a Vision for the Future?

Wed, 27 Oct 2010 13:14:17 EST

New Hewlett-Packard CEO Leo Apotheker and non-executive board chairman Ray Lane take over the reins at the technology giant November 1, and the to-do list is daunting. Apotheker, the former CEO of business software company SAP, will have to convince doubters he is the right leader for HP, do battle with rivals such as IBM, Oracle and Apple, and set the company's long-term strategy. In addition, Apotheker must maintain the efficiency the company enjoyed under former CEO Mark Hurd, while gaining the buy-in from employees that his embattled predecessor reportedly lacked.

Dell's Diversification Strategy: 'A Day Late and a Dollar Short?'

Wed, 01 Sep 2010 16:07:02 EST

It has been a battle of the balance sheets as rivals Dell and Hewlett-Packard continue to wrangle over who will win the right to acquire 3PAR, a little known data storage company. While the 3PAR bidding war, which HP is expected to win, is part of Dell's ongoing ambition to get a bigger foothold in high-margin enterprise technology services, the $53 billion company has also been chasing consumers with lackluster products. As one expert asks: "Dell sees the need for diversification, but does it see the need for transformation?"

Whither the Euro: Safe Harbor or Fractured Fate?

Wed, 23 Jun 2010 15:52:02 EST

With the financial crisis in the United States seemingly under control, Europe went into a panic of its own this spring, substituting the specter of defaults on sovereign debt for the American penchant for defaults on home-mortgage debt. A stabilization package valued at nearly $1 trillion was put into place in Europe, calming markets, at least for the moment. But where does the euro wind up amid all this tumult? One view is that the euro is safe, bolstered by a sense that it is too important to fail. But others say it is heading for a fall.

Sprint's 4G Advantage: Game Changer or Not Enough to Call Home About?

Wed, 23 Jun 2010 15:52:02 EST

Sprint has been languishing in a distant third place in the wireless sector. Now it seems to have a chance to gain ground with a hot-selling phone and a fast next-generation data network, the first in the industry to be up and running. But it is far from clear, industry experts say, that Sprint will be able to sign up enough new subscribers to seriously challenge wireless leaders Verizon and AT&T. What's more, the company's first-mover advantage in the 4G world may be short lived -- and, so far, it has not come up with a blockbuster app that would keep it ahead of competitors.

Tarnished Brands at Bargain Prices: Will the Tech Sector's Latest Growth Strategy Pay Off?

Wed, 09 Jun 2010 16:48:25 EST

Growth spurts in the technology industry used to come in the form of ground-breaking startups. But the industry is maturing, and many companies are now large established firms. When these businesses want to increase their industry share, step into new markets or jumpstart their innovation engines, they often turn to mergers and acquisitions -- particularly when they can score a bargain by scooping up a former highflier that is down on its luck. But as companies in other established industries have learned, the hard work often begins after the deal closes -- and the buyer tries to get the erstwhile highflier back up in the air.

Crisis, Contagion and Bailouts: What's Next for the European Union?

Wed, 12 May 2010 15:14:35 EST

In the run-up to this week's announcement of the European Union's $960 billion stabilization plan, Wharton management professors Mauro Guillén and Saikat Chaudhuri, and Jean Salmona, founder and chairman of the editorial board of ParisTech Review, participated in an interview with Knowledge@Wharton on likely outcomes from the financial crisis facing Greece, some of its sister countries and the European Monetary Union more generally. How did events spin so out of control? How will the politics of the crisis affect the Eurozone's economic performance? Guillén, Chaudhuri and Salmona addressed these and other questions on May 7, just before the huge financial support package was announced.

Playing on a Global Stage: Asian Firms See a New Strategy in Acquisitions Abroad and at Home

Wed, 28 Apr 2010 14:56:07 EST

Asia has become the world's hottest arena for mergers and acquisitions. European and American companies are seeking a larger presence in the world's fastest-growing economies even as Asian companies with strong local currencies and ample credit are pushing to enter new markets or consolidate existing ones at home. Indeed, during the first quarter, Asian M&A activity more than doubled from a year earlier while activity in the United States and Europe declined. Yet the growth of Asian M&A is likely to have its rough patches, too, including legal barriers and foreign ownership restrictions, according to Wharton faculty and others.

Pharma Is at Pains to Replace Blockbusters: Has It Found the Cure?

Wed, 03 Feb 2010 16:52:49 EST

As the pharmaceutical industry comes to grips with the expiration of some $130 billion in patented products over the next four years, executives can no longer bank on a single drug like Lipitor to drive earnings. Instead, they are aiming to diversify their drug portfolios, hoping to develop products for far less than the $800 million-plus figure often cited as the price of bringing a new drug to market. According to industry experts, new paths involve innovative business models and unfamiliar risks, including allowing outsiders to see company secrets at earlier stages and mimicking biotech venture capital models.

The Road to China: Fresh Insights into the World's Fastest-growing Economy

Wed, 09 Dec 2009 17:18:52 EST

Earlier this year, Harbir Singh, Wharton’s vice-dean for Global Initiatives, launched a series of trips to foreign countries as a way for faculty to gain a deeper understanding of international economies and then use this knowledge in their teaching and research. Six professors recently visited the Chinese cities of Beijing, Shanghai and Shenzhen, and met with executives from Lenovo, Haier and Huawei, among other companies. Knowledge@Wharton asked three of the participants – Singh, management professor Saikat Chaudhuri and health care management professor Rob Burns – to share insights from their trip.

Early Tremors: Is It Time for Another Social Network Shakeout?

Wed, 14 Oct 2009 15:33:51 EST

Faint rumblings have begun in the social networking landscape. Facebook acquired smaller rival FriendFeed in August; Friendster, viewed as an also-ran in the U.S., has refocused its operations on the Asia-Pacific region; and News Corp., owner of MySpace, has reshuffled executives and restructured the unit as traffic to the site slows. Experts at Wharton say there's still a lot of growth left in the sector, but a round of consolidation, reinvention and restructuring is likely in the not-too-distant future.

Pushing Zune: Is Microsoft Fighting an Uphill Battle?

Wed, 30 Sep 2009 17:48:04 EST

In what was billed as "a significant step forward," Microsoft on September 15 launched its next-generation Zune HD media player, touting the device's ability to play high-definition (HD) video and receive HD Radio signals, along with a state-of-the-art, organic light-emitting diode screen. Experts at Wharton say that despite its advanced technology, it isn't yet clear whether these features will matter to consumers. Zune HD already faces the nearly impossible task of competing against Apple and its iPod, which had 73% of the market as of July. Should Microsoft continue to fight this battle?

Skype's Life after eBay: Free in More Ways Than One

Wed, 16 Sep 2009 16:45:37 EST

The last four years at Skype have been anything but dull. In 2005, eBay bought the popular Internet-based phone service in a deal that raised plenty of eyebrows. But with eBay's $2.75 billion sale of Skype on September 1, one whirlwind era closes and another one begins. The key for Skype now is to find new ways in the emerging "communication ecosystem" -- as one Wharton expert calls it -- to monetize a service that most of its customers are used to getting for free.

The Disney/Marvel Marriage: Will They Live Happily Ever After?

Wed, 16 Sep 2009 16:45:37 EST

Trying to picture the edgy, ultra-macho characters of Marvel Comics (like Spider-Man or the Hulk) teaming up with Walt Disney's fairy tale princesses and cheery spokesmouse is not an easy task. Nonetheless, Wharton faculty and entertainment analysts predict Disney's $4 billion acquisition of Marvel will overcome some major challenges and allow the company to instantly enter a key market where, as of now, it has made few inroads.

Going Green: Why Germany Has the Inside Track to Lead a New Industrial Revolution

Tue, 07 Apr 2009 12:01:31 EST

Already a leading player in so-called clean technology -- the mix of environmentally benign power generation and environmentally friendly technologies -- Germany may become the epicenter of the world's next industrial revolution: the triumph of clean, cheap, sustainable electricity.

A Matter of Degrees: German Education Reform and Its Consequences

Tue, 07 Apr 2009 12:01:19 EST

While Germany's education system has had a proud legacy, policy makers in recent years have become frustrated with a system that seems stuck in a number of ways. Knowledge@Wharton asked experts at Wharton and leading German universities to explain what's changing in post-secondary education and the impact these changes will have on German business and society.

German Inter-city Competition Enters a New Millennium

Tue, 07 Apr 2009 12:01:27 EST

While few European cities have a business-friendly reputation, German cities are an exception. Drawing upon their historic strength as competitive centers in a decentralized economy, cities are actively vying to attract global business. Düsseldorf, which has successfully courted companies from around the world, is a case in point.

SAP's Bill McDermott: The Future of Enterprise Software

Wed, 11 Jun 2008 16:25:47 EST

As president and CEO of SAP Americas, Bill McDermott is responsible for managing the German software developer's strategic initiatives in the U.S., Canada, Latin America, and most recently in Japan, China and India. In an interview with Wharton management professor Saikat Chaudhuri, McDermott offered his views on where enterprise software is headed and how the company has leveraged worldwide resources to deliver its services globally. The two also discussed SAP Americas' relationship with Microsoft and threats the company faces from arch rival Oracle.

Mergers in the Air? Microsoft/Yahoo and Delta/Northwest

Wed, 16 Apr 2008 17:54:55 EST

The ongoing takeover battle between Microsoft and Yahoo has taken several surprising turns over the past few weeks. After rejecting Microsoft's unsolicited $44.6 billion offer in late February, Yahoo has announced a two-week ad testing program with its main search rival, Google, and has reportedly entertained a possible merger with Time Warner's AOL. Meanwhile, Microsoft was rumored to be considering News Corp. as a possible ally in acquiring Yahoo. While spectators wait for the next twist in this saga, another headline-making deal has been announced: a merger between Delta and Northwest Airlines to become the world's largest airline. Knowledge@Wharton spoke with Wharton management professor Saikat Chaudhuri and Wharton legal studies and business ethics professor Kevin Werbach to find out whether these deals make sense and for whom.

Once Called the 'Sick Man' of Europe, Germany Is Showing New Signs of Vitality

Wed, 28 Mar 2007 13:10:22 EST

Talk about good timing. With Germany assuming the rotating presidencies of the European Union and the Group of Eight (G8) developed nations, the country is enjoying an economic resurgence. It remains a formidable exporter of goods worldwide, its unemployment rate has eased and a recent major tax increase has not dampened economic activity as much as many had feared. Still, there is some question whether the recovery is sustainable and whether Germany is up to meeting such long-term challenges as an aging population and a declining birth rate, according to faculty members at Wharton and German business schools, as well as other experts.

Indian BPO Firms Step Out of the Back Office, toward Knowledge Process Outsourcing and Beyond

Thu, 15 Feb 2007 15:24:37 EST

At every juncture in the Indian outsourcing industry's growth curve, its players seem to be discovering a changing array of new frontiers, beyond merely scaling up in their familiar territories. Interviews with experts from Wharton, Boston Consulting Group and outsourcing companies reveal that the industry is moving well beyond transaction-intensive services like call-center support or check processing, and now seems to have achieved critical mass in its quest to provide knowledge process outsourcing (KPO) services -- where skills, judgment and discretion are the tools.

India in the Global Supply Chain: Can Domestic Demand and Technology Skills Help It Catch Up?

Thu, 15 Feb 2007 15:24:42 EST

Hampered by poor infrastructure, bureaucratic red tape and restrictive labor laws, Indian manufacturing has failed to make its presence felt globally. But that is rapidly changing, say experts from Boston Consulting Group and Wharton. More and more multinationals are setting up manufacturing operations in India, attracted by India's burgeoning domestic market and its relatively low-cost, highly skilled workforce.

Bharat Forge Pulls Ahead of Indian Manufacturing, but Obstacles Lie Ahead

Thu, 15 Feb 2007 15:24:46 EST

It's a surprising fact: The world's largest factory for forgings -- parts for engines, axels and the like -- sits not in Detroit, Tokyo or Stuttgart, but in the industrial city of Pune in western India. The factory belongs to Bharat Forge, foremost among a group of auto parts companies that are rapidly putting India on the world map for manufacturing. Yet, say experts at Boston Consulting Group and Wharton, Bharat Forge's story also illustrates the hurdles Indian industry must overcome, ranging from weak infrastructure to low labor productivity.

Private Equity Is on a Roll, but Are Investors in for a Let-down?

Wed, 10 Jan 2007 15:27:02 EST

With private equity investors of all types flush with cash -- from venture capitalists and hedge funds to large leveraged buyout (LBO) firms such as The Blackstone Group and The Carlyle Group -- private financing hit record levels in 2006 and is likely to remain strong in the new year, according to Wharton faculty and industry analysts. Nearly a third of the dollar value of all U.S. acquisitions last year involved private equity firms, up from 3% five years ago. But just how long can this boom continue, and what changes may be in store for private equity models?

Indian Companies Are on an Acquisition Spree: Their Target? U.S. Firms

Wed, 13 Dec 2006 15:19:43 EST

Reliance Gateway Net, VSNL, Scandent and GHCL aren't exactly household names in the U.S., but they may be signs of bigger things to come. These are only a few of the growing number of Indian businesses that have acquired U.S. firms in the past few years. And the U.S. merger-and-acquisition activity is just part of a bigger picture. Indian companies -- usually quietly, but sometimes with media fanfare -- have been on a buying spree in continental Europe, Great Britain and Asia in attempts to become key players in global markets.

Podcast: Cisco's Graeme Wood: Acquisitions Happen Quickly, but Integration Is a 'Slow, Steady Process'

Wed, 29 Nov 2006 15:25:42 EST

Graeme Wood is director of acquisition integration at Cisco, the leading worldwide supplier of networking equipment and network management for the Internet, headquartered in San Jose, Calif. Since In this role, he has overseen the integration of 30 Cisco acquisitions -- the most notable of which is Scientific Atlanta. The $7 billion deal, completed earlier this year, allows Cisco to offer an end-to-end data, voice, video and mobility solution for carrier networks and the digital home. During a recent visit to campus, Wood spoke with Wharton management professor Saikat Chaudhuri about how acquiring a global company like Scientific Atlanta fits into Cisco's overall acquisition strategy, and the lessons learned about integrating on a large scale.

To Blog or Not to Blog: Report from the Front

Wed, 18 Oct 2006 16:48:45 EST

Kevin Werbach, Wharton professor of legal studies and business ethics, is a dedicated blogger, especially when it comes to technology news and innovation. He sifts through 300 to 400 blogs using NetNewsWire for the Mac, a blog management tool that allows him to quickly scan new posts. "I look for blogs that tell me something I don't already know, including in areas where I am an expert," he says. Knowledge@Wharton asked several faculty members and technology experts to comment on the appeal and usefulness -- or lack thereof -- of blogs.

The Succession Question at Tech Firms: When's the Right Time to Go?

Wed, 03 May 2006 15:07:25 EST

The recent resignation of Scott McNealy as CEO of Sun Microsystems, the company he founded 22 years ago, is another milestone in the succession process of a large technology company. But tech companies often pose unique succession issues, in part because of their unusually fast growth and young founders, according to Wharton faculty and technology experts. The challenges are especially critical when the entrepreneurs are celebrities, and when the company has grown large enough that broad-based management skills become as crucial as entrepreneurial passion.

Germany's Angela Merkel: A 'Continental European Politician in the Making'

Wed, 08 Mar 2006 08:42:04 EST

During her first few months in office, German Chancellor Angela Merkel has attained the kind of approval rating that politicians the world over dream about, largely due to the way she has handled herself on international matters in visits to Washington, Moscow and Brussels. But her main challenge is Germany's economy, Europe's largest and the world's third biggest. It is a challenge that has been staring German leaders in the face for a long time, for a number of reasons: lackluster GDP growth over the last five years; a vast, overburdened welfare state; an anemic service sector; stubborn protectionist sentiment, and an aging population that will place greater strain on the nation's budget in years to come. In whatever policies she proposes, Merkel will have to tread softly to avoid alarming citizens and trade unions wary of change, say scholars at Wharton and business schools in Europe.

From Retailers to Manufacturers, Complexity in Products Begs the Question: How Much Is Too Much?

Wed, 01 Mar 2006 17:04:36 EST

In a recent advertising mailer, one of the largest U.S. grocery retailers boasted having 300 varieties of beer and 1,800 varieties of wine. It seems like a great sales pitch, but what is the impact of all that variety on costs? Moreover, with 1,800 varieties of wine, what will be the customer response -- confusion or delight? Experts from George Group Consulting and Wharton agree that increasing product complexity in both retail and manufacturing is a very slippery slope: As a means of meeting evolving consumer demands or capturing new market share, expanded product portfolios can backfire because of the strain they place on already scarce resources, and because true profitability is masked. In addition, as companies expand their offerings, complexity can seep into internal processes, producing inefficiencies that can lead to customer dissatisfaction down the road.

The 2006 Gadget Parade: A New Era of Convergence and Convenience

Wed, 08 Feb 2006 16:48:22 EST

Apple's iPod again ruled beneath the Christmas tree in 2005 after the latest model of the iconic music player was outfitted with a video screen. And as the new year begins, a long-anticipated era of convergence in consumer technology products draws closer, according to Wharton faculty and technology analysts. Meanwhile, cell phones that play video, e-mail delivered to handheld computers, telephone conversations over the PC -- and hundreds of other glimpses into Christmas future -- were on display at the annual Consumer Electronics Show in Las Vegas last week where the stepped-up presence of digital giants, including Microsoft, Google, Yahoo and Intel, signaled their ever-increasing interest in expanding from the office into consumers' living rooms.

The Art of Walking Away from the Deal

Wed, 11 Jan 2006 16:32:12 EST

On December 15, 2004, Johnson & Johnson announced a deal to acquire cardiovascular device maker Guidant for $25.4 billion. Months later, after Guidant had recalled thousands of defibrillators and pacemakers and received subpoenas from U. S. Attorneys offices in Boston and Minneapolis, J&J insisted on renegotiating the purchase price lower. The two companies eventually agreed on a new price -- $21.5 billion. While the J&J case has recently been complicated by a counteroffer from medical device maker Boston Scientific, what Guidant experienced in the course of negotiations with J&J is a "material adverse change," a phrase that refers to events that happen between the time a deal is announced and the day it closes. How often do material adverse changes lead to deal breakups, and what role do they play as a bargaining chip for companies trying to renegotiate their original offers?

The Innovation - through - Acquisition Strategy: Why the Pay-off Isn't Always There

Wed, 16 Nov 2005 16:31:00 EST

During the tech boom of the 1990s, leading edge companies began buying up smaller firms -- and their promising, if untested, technologies -- to stay one step ahead of the competition. Then the tech bubble burst and M&A activity came to a screeching halt. Acquisition leader Cisco, which purchased 70 companies between 1992 and 2000, bought just two in 2001. It became evident that while some purchases helped acquirers reap benefits, many failed to create the intended value. Wharton management professor Saikat Chaudhuri believes he knows why. His research is especially timely given the recent growth in M&A activity in the tech sector and other innovation-driven industries.

R&D in India: The Curtain Rises, The Play Has Begun...

Mon, 21 Nov 2005 14:55:50 EST

Motorola, Microsoft, Intel and other high-tech firms are launching ambitious R&D programs in India. Many of these projects complement research being conducted in other parts of the world and deal with products meant for the world market. What forces are driving the migration of high-tech R&D into India? Experts say it has a lot to do with the fact that companies expect some of the fastest growth in the future to come from the Asian giants -- India and China.

Free Advice from Wharton: Here's What Hewlett-Packard's New CEO Should Do

Tue, 10 May 2005 15:57:04 EST

When it was announced on March 29 that the board of Hewlett-Packard had tapped Mark V. Hurd to be the company's new CEO and president, the most notable part of the deal was Hurd's relative obscurity. But in the weeks and months to come, Hurd will be front and center. His personality may be lower key than that of the flashy Fiorina, but Wharton faculty members say he faces tough strategic decisions that will raise his visibility at a company whose stock has plummeted in value in the last five years. Chief among the decisions facing Hurd: Should H-P, which acquired Compaq Computer in a controversial move by Fiorina in September 2001, be broken up?

In eBay's Success May Lie Hints of Trouble Ahead

Wed, 09 Mar 2005 16:03:13 EST

When eBay reported its 2004 financial results on January 19, it looked like business as usual. Annual revenue was up 51% from a year ago, and net income jumped 76%. But then the company cut its outlook for 2005 and rankled customers with a fee increase. On Wall Street the Internet darling got panned as shares tumbled 19% in one day (January 20). Are these issues short-term growing pains or the beginning of something worse? Is eBay becoming a mature company that won't be able to keep up its heady growth? And what competitors are targeting eBay? Wharton experts say there's no need to get too worried about eBay's prospects right now. In the future, however, things may become more interesting.

The H-P Compaq Merger Two Years Out: Still Waiting for the Upside

Wed, 20 Oct 2004 15:58:19 EST

Two years after Hewlett Packard's merger with Compaq, people are still asking some hard questions about the company's prospects. The reason, say experts at Wharton and elsewhere, is that the reconfigured H-P remains a work in progress. Chairman and CEO Carleton (Carly) Fiorina has made strides in integrating the operations and cultures of the two companies. But if H-P's stock price is any indication of the company's future, investors still harbor concerns about whether the merger will ultimately strengthen the Palo Alto, Calif.-based company against its two chief competitors, Dell and IBM.