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The Hewlett-Packard/Compaq merger

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Abstract

This case study is concerned with the issue of size and the identity of merging partners (see for comparison the case study on BHP Billiton and the Strategy in Action module on AOL Time Warner, both in Chapter 11). It considers the computer industry and the current stage in its development.

Michael Dell looms over the PC landscape like a giant, casting a shadow over all his unfortunate competitors.

Fortune, June 21, 2002: 55 HP’s breadth and depth of offering is quite deep: It includes services; it includes virtual storage, virtual processing, server provisioning, management software and virtual application environments that will allow workloads to move from machine to machine as needed. It’s a very comprehensive offering. But it’s hard for me to tell what are products that will be delivered immediately and what are products that will be delivered over time. We’ll have to watch and see.

Dan Kuznetsky, Vice-president of systems software at IDC

The question is: is Hewlett-Packard trying to emulate IBM?’ H-P gives ‘high-tech, low-cost’ solutions, IBM ‘high-tech, high-cost’, and Dell low-tech, low-cost’.

Veverka, 2003

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  • Edwards, C., ‘The new HP: how’s it doing?’, Business Week, December 23, 2002: 58–60.

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  • www.hewlettpackard.com

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  • www.compaq.com

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© 2004 Colin White

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White, C. (2004). The Hewlett-Packard/Compaq merger. In: Strategic Management. Palgrave, London. https://doi.org/10.1007/978-0-230-55477-1_22

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