What HP really needs to do...

HP needs a plan and direction. Not just a reorganization.

HP is in a very unique position in the coming years because they control unique parts of the future, like Sony did 5 years ago, but ultimately failed to capitalize on it. Apple came and ate Sony's lunch and kicked them to the curb. Steve Jobs got it right and realized that computers became a commodity business with low margins. So he turned them around to be the leading consumer electronics company. Along with content for all his devices, he ended up owning the things you use in your every day life.

Right now HP is still a house hold name. Chances are that everyone has a HP printer in their house or a laptop. What HP is missing is the vision. HP's acquisition of WebOS was a thought in the right direction, just executed badly. The market didn't need more fragmentation. They should have adopted their core strength and went the Windows route to create the entire home experience. They have the Windows Home server which ties your entire house together. Laptops and Desktops for the interface. A tablet and phone for when you are on the go. Make it seamless and easy for the end user and they will come.

1. HP needs to either bring back their PDA/Phones. The easiest is to acquire HTC, since they were their OEM for the iPaq's. You need the daily device in the consumers hand. A merger with Nokia would be rather large, but nice. Since the stock is trading at an all time low. Nokia would give them an amazing global presence.

2. Acquire Roku or SlingBox to capture the TV market. This gives them an automatic entry into the living room. You are no longer relegated to the home office.

3. Acquire Hulu or Netflix and integrate it with all your devices. There's your content automatically available to ALL your devices.

Now, this is no simple task to stitch this all together. But you do see the vision. They already have an infrastructure for the "cloud" servers. How cheap would it be for Hulu to build out their data centers if the parent company makes the hardware?

They already have the retail channels, you can leverage it all without building retail stores like Apple did. This would also give BestBuy a much needed boost with the retail sector being a dying business.