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  • April 1998
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Compaq, 1998

By: Steven C. Wheelwright and Matt Verlinden
  • Format:Print
  • | Pages:12
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Abstract

In 1997, Compaq Computer Corp. had become a $25 billion powerhouse. It had accomplished its revenue growth projections, successfully made a number of strategic acquisitions, and increased its gross margins, principally by moving up market into servers, workstations, and networking gear. At the same time, there were a number of strategic challenges facing Compaq in 1998. Compaq seemed to be squeezed by apparently contrary impluses--the need to reduce inventory while also satisfying its distribution channel; the need to build-to-order while also taking on product lines added through acquisition; the need to both fulfill PC orders from a hand-holding position constituency while moving clientele to articulate specifically what it wanted. Managing expectations, increasing margins, making operations more efficient, expanding the product line, and changing distribution: This was a tall order.

Keywords

Mergers and Acquisitions; Transformation; Customer Relationship Management; Profit; Revenue; Growth and Development Strategy; Brands and Branding; Distribution Channels; Alliances; Customization and Personalization; Computer Industry

Citation

Wheelwright, Steven C., and Matt Verlinden. "Compaq, 1998." Harvard Business School Case 698-094, April 1998.
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About The Author

Steven C. Wheelwright

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More from the Authors
  • Operations Management Reading: Forecasting By: Steven C. Wheelwright and Ann B. Winslow
  • Operations Management Reading: Forecasting By: Steven C. Wheelwright and Ann B. Winslow
  • Baria Planning Solutions, Inc.: Fixing the Sales Process, Faculty Spreadsheet (Brief Case) By: Steven C. Wheelwright and William Schmidt
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