Hewlett-Packard decided that, to grow more rapidly, it needed to design a revolutionary disk drive product that would create an entirely new market or application for magnetic recording technology. The company followed most of the "rules" good managers follow in such situations: heavyweight project team, lots of senior management support, etc. But results are lagging. The question is why good management isn't enough and how to correct the situation.

Discussion Questions

Describe the competitive forces in the disk drive market.
What is the generic strategy in the Disk Drive industry? What is HP’s strategy?
How would you describe HP's culture and how did it influence the Kittyhawk project?
Describe and critique the Kittyhawk project approval and staffing process.
Critique the “project parameters” on page 5 of the case and the “key objectives” on page 6. Would the parameters and objectives be the same if this were a startup?
What is the breakeven volume HP must sell to recover its costs by year three? Use data from page 5 (“The Project Parameter”)? Is this BEV reasonable?
What are the target markets for the Kittyhawk and the innovation ecosystems surrounding each one? Identify the risks in the ecosystems?
Why has the Kittyhawk not met its shipment targets?
What recommendation should Seymour make to his boss Spanner at the upcoming monthly review meeting at the end of the case?