Compaq Computer:Computer
COMPAQCOMPAQ COMPUTER:COMPUTER: INFORMATIONINFORMATION TECHNOLOGYTECHNOLOGY CENTER FOR RESEARCH IN A COMPANY IN TRANSITION ON INFORMATION TECHNOLOGY AND ORGANIZATIONS AUTHORS: University of California, Irvine Jason Dedrick 3200 Berkeley Place Kenneth L. Kraemer Irvine, California 92697-4650 Center for Research on Information Technology and Organizations University of California, Irvine SEPTEMBER 1999 Copyright ã1999. J. Dedrick & K. Kraemer Acknowledgement: This research has been supported by grants from the CISE/IIS/CSS Division of the U.S. National Science Foundation and the NSF Industry/University Cooperative Research Center (CISE/EEC) to the Center for Research on Information Technology and Organizations (CRITO) at the University of California, Irvine. Industry sponsors include: ATL Products, the Boeing Company, Bristol-Myers Squibb, Canon Information Systems, IBM, Nortel Networks, Rockwell International, Microsoft, Seagate Technology, Sun Microsystems, and Systems Management Specialists (SMS). Abstract Compaq Computer, based in Houston, Texas, is the world’s largest personal computer manufacturer and the fourth largest information technology (IT) company. From 1992-1997, the company’s aggressive high volume PC strategy propelled it to high growth rates in revenues, while its leadership in PC servers sustained strong margins and drove profit growth. Starting in 1995, former CEO Eckhard Pfieffer began to transform Compaq from a pure PC company to a full-service IT company that could compete with the likes of IBM and Hewlett- Packard. The key strategic moves were the acquisitions of Tandem Computer and Digital Equipment Corporation in 1997 and 1998, giving Compaq a diverse line of technologies and service capabilities. Compaq stumbled badly in 1998 as it faced new challenges in the PC market and tried to assimilate Tandem and Digital.
[Show full text]