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Management article
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Reference no. S0307C
Published by: Harvard Business Publishing
Published in: "Strategy & Innovation Newsletter", 2003

Abstract

In the early 1990s, both Teradyne and Hewlett-Packard identified new technologies that had enormous potential to cause new-market disruptions. Managers at both companies forced their organizations to invest time and money on these new technologies, believing they had a chance to enter new markets. Teradyne''s efforts were soon rewarded with a new line of business that created revenues in excess of $200 million over the next several years. But HP backed out of its efforts after two years, with multimillion dollar losses and bad press. Find out how two stories that began so similarly ended up so differently.

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Abstract

In the early 1990s, both Teradyne and Hewlett-Packard identified new technologies that had enormous potential to cause new-market disruptions. Managers at both companies forced their organizations to invest time and money on these new technologies, believing they had a chance to enter new markets. Teradyne''s efforts were soon rewarded with a new line of business that created revenues in excess of $200 million over the next several years. But HP backed out of its efforts after two years, with multimillion dollar losses and bad press. Find out how two stories that began so similarly ended up so differently.

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