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Knowledge Network: Faculty & Research

HP’s strategic shortfall: A paradox of choice

HP global strategyThe following post on global strategy is by Thunderbird students Manish Chhokar, Andres Camacho, Maria Teresa Morazan, Archit Kansal, Aaron Sanchez and Michael A. Sherry

The human brain can effectively process and decide upon a limited number of choices. Too many options can cause people to enter what experts refer to as “paralysis of analysis,” a syndrome that is linked to having an overabundance of choices. Unfortunately, this state ultimately leads to further indecision and “overwhelm.” In his 2004 acclaimed book, “The Paradox of Choice,” author Barry Schwartz argues that by eliminating the number of consumer choices, a company can reduce levels of anxiety and confusion during the shopping process. We believe that a similar challenge has presented itself in the crowded laptop market, and that HP has ultimately suffered from a strategic “identity crisis,” failing to realize the negative consequences of providing an overabundance of choices for its customers. Read the full article in Thunderbird Student Projects, a blog on the Thunderbird Knowledge Network.

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