Case | HBS Case Collection | March 2003

Compaq's Struggle

by Carliss Y. Baldwin and David Lane

Abstract

In 1997, Compaq Computer was locked in price competition with industry leader Dell. Although Compaq sought to escape difficulty by acquiring Digital Equipment Corp. ,a maker of more lucrative servers and minicomputers, in 1998 the simultaneous effort to remain a competitive PC maker while transforming itself into a full-service computer firm proved arduous.

Keywords: Mergers and Acquisitions; Business Exit or Shutdown; Asset Pricing; Alliances; Competitive Strategy; Computer Industry;

Citation:

Baldwin, Carliss Y., and David Lane. "Compaq's Struggle." Harvard Business School Case 903-021, March 2003.