Word: compaqã
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...Dell have little basis on which to differentiate their products. In a sagging economy, conditions are ripe for a devastating price war and a consolidation of the industry, which we have in fact seen in the last year. Two of the major players—Hewlett Packard and Compaq??are doing everything wrong in response to this situation, while two of the others—Dell and Apple—have found wildly different, but equally successful, ways of actually growing through a recession...
...synergy,” she announced a merger with Compaq, a move that is generating boardroom chaos even now, eight months after the announcement. Whatever happens, HP and Compaq are two companies whose core products—printers for HP and services and consulting for Compaq??are under attack or not growing. Merging the two to wring some advantage out of their disastrous PC divisions would only further dilute the earnings contribution of their viable divisions. As such, Fiorina’s approach—profits through layoffs, growth through acquisition instead of innovative...
Michael Dell, CEO of the eponymous PC maker, has prospered by being the cause of HP and Compaq??s woes. Dell builds and ships its PCs directly to customers, taking most orders through its web site and avoiding sales channels, large parts inventories (which decline in value by the hour) and anything that might drag it down. Dell’s “direct” approach enables it to make money virtually no matter what a PC costs; thus, Dell launched a major price war last year to gain market share and force its competitors into...
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