Compaq computer versus dell computer business model comparison essay

Sachin Sina gave me opportunity to carry on the present research assignment. I heartily thankful to him it would not be possible for me to carry this research work without him assistance and guidance. As well as in the choice of PC, a lot of attention should be paid on the technical characteristics.

Compaq computer versus dell computer business model comparison essay

However, the new companys profits did not meet investor expectations. While HPs management pointed to a weakened macro-economic environment and competitive price pressures in personal computers PCs and printers to help explain its disappointing margins, industry observers cited the managements inability to keep pace with changing market conditions as a key contributor.

Specifically, critics chastised the HP management for failing to manage its computer business efficiently and for following Dell Inc. Dell s lead in a low-cost direct selling model. Many analysts had long thought HPs stock was undervalued, and had endorsed the idea of splitting up HPs operations to unlock its true worth.

In earlyHP was stuck in a highly competitive market with a sub-optimal infrastructure and strategy that could not be fixed easily. Under mounting pressure for change, the board of directors fired its chief executive officer CEOCarleton Fiorina, in February Hurd said that he had to spend his first six months focusing on execution and demand creation.

The big debate over HP at the time was whether poor execution was to blame for its woes or whether HP had adopted the wrong strategy since its merger with Compaq. Why wasnt HP much stronger after the merger? Was Dells computer business really so good that HP could not compete?

How could HP rediscover its dynamism and avoid a painful break-up?

Compaq computer versus dell computer business model comparison essay

The companys first product was an audio oscillator an electronic test instrument used by sound engineers. Inthe company defined its goals1and values, which were later published in Packards book entitled The HP Way.

The management philosophy that Packard described which included a down-to-earth management style and genuine concern for employees was considered the backbone of the companys culture.

The founders led the company untilwhen John A. Inhe was succeeded by Lewis Platt, another HP veteran engineer who had been promoted from within the company. Fiorina was the first outsider to take the helm at HP. While the merger went smoothly, it did not solve many of HPs strategic challenges.

Fiorina stepped down in Februaryand was succeeded by Mark Hurd in March For most of its time, HP went through a growing and maturing process.

The company had evolved from a producer of scientific instruments to a technology firm with an extensive portfolio of products and services.

By the late s, revenue growth declined and HP faced pressure to increase profitability. When Fiorina became the president and CEO inshe introduced a number of changes to revitalise the company.

Historically, HP had been highly decentralised and was managed like a holding company. Fiorina consolidated the companys 83 business units into 17 units under four divisions.

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In the late s, HP was a significant player in the computer market and an undisputed leader in the printing industry. HP introduced its first computer inwhich was used to collect and examine data originating from HP electronic instruments.

The company expanded into business computing in the s with HP It then introduced its first PC in and later released a family of computer systems in that were based upon RISC architecture. ByHP had become the fastest growing PC company in the world, and was ranked the number four PC manufacturer globally.

In the early s, the Epson Company EpsonDiablo and Qume dominated the printing market with their dot-matrix and daisy-wheel printers.

InHP brought dramatic changes to the industry when it released the ThinkJet. The printer was made based on the thermal inkjet technology the company developed in the s.

HP also released its laser printer in the same year. It then introduced the first desktop colour laser, Colour LaserJet, in Since the mids, demand for printers soared as home PCs became more popular.

As a result, HP dominated the Inkjet and Laserjet segments, as well as in the printer supply business. Printer supplies, including toner cartridges, were an annuity to HP once a printer was sold.

They generated high margins and were a source of stable revenue stream. The pricing strategy of printer supplies was analogous to that of razor blades manufacturers normally sold the razor cheap and then charged premium prices for the blades.

However, HP was struggling under difficult economic conditions. The consultants reviewed a variety of strategic options for HP, which included a split-up plan and a strategic licensing deal with Compaq. DEC in was the largest acquisition in the history of the computer industry at the time.

The acquisition gave Compaq, among other assets, DECs competent service and consulting staff of 22, people.Compairing the Websites of Dell Computer and Compaq Computer Essay - Compairing the Websites of Dell Computer and Compaq Computer In the exploding world of e-commerce, the ability of a company to attract customers using websites is critical for the company’s success.

The paper will study Dell Computer Corporation and its business model, including many aspects of direct marketing introduced by Dell Computers will be analyzed. Dell Computer Corporation Michael Dell started the company in with the revolutionary idea to sell custom built computers /5(22).

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Dell still practices the direct business model, saving time and cost by bypassing retailers and passing on the cost savings to the customer. We will write a custom essay sample on Dell computer.

a) Dell’s build-to-order manufacturing and sales model changed the way companies buy computers. Dell has excellent supply chain for notebook products and strong marketing execution capabilities.

Dell remains the leader in service and support for the largest global enterprises. Compaq Computer Corp. of Houston, Texas and International Business Machines Corp. of Armonk, N.Y., all want a piece of Dell's direct business. But they're trying to do what Dell .

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