Word: compaq
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Dates: during 1990-1999
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...Compaq Contura: in my opinion PCs with the best values. Manufactured by a company you can trust...
...also the worst of times. For most of the companies that make those computers, that market has suddenly become a lethal place. Once successful companies such as IBM, Compaq, Dell and Apple are floundering; profits are plunging, margins squeezed. Last month one of the personal-computer industry's leading lights -- the pioneering Tandy Corp. -- became a prominent casualty. Faced with $52 million in losses in the past year and an even bloodier future, Tandy decided to abandon the PC business, which accounted for 10% of its sales last year. The company simply could not survive the intense price competition...
Ironically, the price war may have strengthened U.S. computer leadership in some key markets. American firms, which feared a takeover by Japanese firms during the 1980s, have exported their cutthroat pricing to Tokyo with stunning success. Led by IBM, Dell and Compaq, U.S. companies sent shock waves through the Japanese PC establishment by trimming prices up to 30%. While Japanese domestic manufacturers, such as Fujitsu and NEC, have responded with deep discounts of their own, they have been unable to shake off the Americans, much to the delight of Japanese consumers...
...strategy is getting the manufacturers of these machines to modify them so they will run his new programs. Judging by the blue-chip companies that will be sharing the dais with him when he unveils his system this week at the Hotel Macklowe in midtown Manhattan -- Hewlett-Packard, Ricoh, Compaq Computer, Minolta, McCaw Cellular, Canon, NEC and Northern Telecom -- he seems to have made remarkable progress. Says Paul Saffo, a research fellow at the Institute for the Future: "This may not be it, but it is one more step toward the Holy Grail of the paperless office...
...time, many of the recent layoffs may not have been necessary. According to a new study by Wayne Cascio, a business professor at the University of Colorado, companies have too often assumed that if the competition was cutting costs by firing workers, then they had to follow suit. Compaq Computer, for example, announced last October that it was laying off 1,000 workers. Yet two weeks later, the company admitted that profits would double in 1992. Firms like General Electric and Campbell Soup continued to slash personnel even though they both just had highly profitable years. "There is tremendous peer...