Post merger logo for Compaq products. Gutsch had an extensive security system and guard station installed on the eight floor of CCA-1, where the company's senior vice presidents had their offices. The new PC industry was born and was exploding with the extraordinary potential that Spindletop had demonstrated eighty-one years earlier.
Also, the company should no longer use profits from high-margin businesses to carry marginally profitable ones, as instead each unit must show a return on investment.
Compaq struggled with merger issues for the rest of the s. Dell became the number one supplier of PCs in Under pressure from Compaq's board to control costs as staff was ballooning at their Houston headquarters despite falling U.
These departures were motivated by an enhanced severance or early retirement, as well as an imminent demotion as their functions were to be shifted to vice presidents. This case study was compiled from published sources, and is intended to be used as a basis for class discussion.
Singapore ; Compaq Computer S. The Compaq Portable was one of the progenitors of today's laptop ; some called it a "suitcase computer" for its size and the look of its case.
Later in the company made two significant acquisitions. They discussed the possibility of managing a Mexican restaurant, making storage devices for minicomputers or, perhaps, a beeping device to help locate lost items.
According to some analysts, Fiorina was responsible for the mess the merger had landed in. Nor is it a primary information source.
Cooley, director of corporate sales. Nine new products were introduced during that year. New York Ticker Symbol: Compaq is sitting down at the typewriter". Founding[ edit ] Early Compaq logo.
Capellas also assumed the title of chairman on September 28, when Rosen stepped down from the board of directors. These technologies increased the speed of PCs, enabling them to perform such complex operations as networking and multitasking. Tandem was a pioneer, and the market leader, for fully-redundant, fault-tolerant computers.
Though the combination of both companies' PC manufacturing capacity initially made it the number one, it soon lost the lead and further market share to Dell which squeezed HP on low end PCs.
Furthermore, Microsoft had kept the right to license the operating system to other computer manufacturers. By that time eight of the company's ten most important dealer chains had merged into four. Industry analysts wondered what benefits HP, a global market leader in the high margin printers business, would reap in acquiring a personal computer PC manufacturer like Compaq at a time when PCs were fast emerging as low-margin commodity products.
Despite having made its fortune by being percent IBM-compatible, Compaq decided to continue building computers with the original AT bus.
HP has gone on to post record revenues and earnings for 6 consecutive quarters into Q2, New Products and Markets Expediency in product development also led to a turning point in Compaq's history.
Support for the virtual mode was added by Compaq engineers. Several senior executives from the Compaq side including Jeff Clarke and Peter Blackmore would resign or be ousted from the post-merger HP.
Cooley would report to Michael S.
During its existence as a division of HP, Compaq primarily competed against other budget-oriented personal computer series from manufacturers including AcerLenovoand Toshiba. Not content with its PC dominance, Compaq in the mids aimed to capture a much wider market. It was hoped that customers would prefer upgrading with ease to purchasing a new computer every time their needs increased.
Ininstead of expanding its own plant, Compaq asked a Taiwanese supplier to set up a new factory nearby to produce the mechanicals, with the Taiwanese supplier owning the inventory until it reached Compaq in Houston. By Compaq ceased to operate as a separate company and all merger functions had been completed.
Compaq struggled as a result of the collapse of the Dot-com bubble bust, which hurt sales of their high-end systems in andand they managed only a small profit in a few quarters during these years. These were systems that were essentially guaranteed to never have any downtime.
The printer line was a failure, however, and was abandoned in In Intel, a leading manufacturer of microprocessors, wanted to market its powerful new microprocessor, theas soon as possible.Under Pfeiffer's tenure as chief executive, Compaq entered the retail computer market with the Compaq Presario as one of the first manufacturers in the mids to market a sub-$ PC.
In order to maintain the prices it wanted, Compaq became the first first-tier computer manufacturer to utilize CPUs from AMD and Cyrix. The HP-Compaq Merger Story - Hewlett-Packard Company, Compaq Computer Corporation, The case discusses the problems faced by the proposed merger between HP and Compaq.
The case details the opposition to the merger and also discusses how the merged entity would compare with its major competitors, IBM and Dell Computers. more broadly with IBM, the Hewlett-Packard Company, and Sun Microsystems, Inc., either by developing its own line of mainframe computers (the powerful, albeit extremely expensive, big brothers of the PC) or by buying an existing mainframe manufacturer.
Compaq embarked on the second course. The organization was founded by William “Bill” Redington Hewlett and Dave Packard in It was started in a car garage in Palo Alto, California, where today it is headquartered.
The first product of HP was an audio oscillator. Eventually, Compaq Computer bought DEC inand then Hewlett-Packard later acquired Compaq. What have we learned from Digital Equipment Corp.'s experience?
Here are three management lessons from DEC's rise. Dell's year-over-year unit sales rose 67 percent in the second quarter ofwhile the No. 1 PC company, the Compaq Computer Corporation, rose 25 percent, according to Dataquest, a market research firm based in San Jose, Calif.Download