Compaq

Doing Business in Silicon Valley PERSONAL COMPUTER BUSINESS MODEL REVIEW Qudus Deen In the past, computer manufacturers such as Compaq and IBM assembled computers based on what they had in their inventory. This necessitated maintaining a stock room for three to four months of computer inventory in the distribution channel - spending millions of dollars in holding cost. As computers component cost steadily decreased with significant technology changes, keeping inventory in stock over a long period

IBM incurred big losses in their PC division from 1996-1998 from this and other initiatives. Meanwhile, Compaq effectively surpassed IBM in the mid 1990s, mainly through large acquisitions of firms like DEC, and followed with attempts to mimic Dell’s build-to-order and direct-to-consumer approach. Continued use of retailers and resellers likely prevented further cost savings, and in 1998 Compaq went from profitable to merely breaking even. Gateway seemed the most well positioned to closely follow

Matching Dell 1. Analyzing Dell’s value chain and competitive strategy, explain how Dell was able to succeed (build competitive advantage) in the low profitable situation of the PC market. “Value Chain Analysis” is a tool for analyzing the value creation system of competitors. Objective is to develop a value creating system with competitive advantage. A value chain is a chain of activities. Products pass all activities of the chain in order and at each activity the product gains some value. The

storage, and price were identified and explained in detail on the computers that were in question of purchasing for a company. The three computers examined for purchase by the company were the Hewlett Packard Compaq 6300 Small Form Factor desktop Personal Computer, the Hewlett Packard Compaq 8300 Elite Small Form Factor desktop Personal Computer, and the Hewlett Packard 21 All-In-One workstation w/400W 90% Energy Efficient Chassis Personal Computer. It is determined that the Hewlett Packard 21 model

DELL WORKING CAPITAL 1. From Tab #1, what is the meaning of the Unneeded Investment? Why is having fewer “days” of inventory an advantage over Compaq? Answer: The Unneeded Investment is done by Compaq in contrast to Dell. Dell could minimize its inventory days in 1995 to 44% of the inventory days of Compaq in the same year! It means for Dell that its liquidity does not have to be invested (to be held) in the inventory, but can be used to achieve faster growth or to do the prices of its products

Resellers commonly handled installation, configured software, pieced together networks, and serviced PCs. As demand for IBM’s PC exploded, other firms began to offer “IBM clones.” Compaq entered the market with a low-priced clone in 1982 and booked $100 million of revenue in its first year. A host of other startups soon followed. Among them was Dell, incorporated in 1984. Like IBM, makers of IBM clones relied on resellers and retail

When we talk about acquisitions or takeovers, we are talking about a number of different transactions. These transactions can range from one firm merging with another firm to create a new firm to managers of a firm acquiring the firm from its stockholders and creating a private firm. We begin this section by looking at the different forms taken by takeovers. 1. TAKEOVER A corporate action where an acquiring company makes a bid for an acquire. If the target company is publicly traded, the acquiring

Problems on Aggregate Production Planning 1. Planners of a company have obtained information regarding the forecasted demand of a product as follows: Period 1 2 3 4 5 6 Total Forecast 200 200 300 400 500 200 1800 Costs Regular time: $2/unit Overtime: $3/unit Subcontract: $6/unit Inventory: $1/unit Backorder: $5/unit They now want to evaluate a plan that calls for a steady rate of regular-time output, mainly using inventory to absorb the uneven demand but allowing some backlog. Overtime

Venezuela Infrastructure Deployment MBA 530 Management Information Systems – Ashland University Kevin Metzger 1. OBJECTIVES: The purpose of this report is to describe all the work we did to implement network infrastructure in the Venezuela offices. In summary, we will present the following: - A list of activities performed to upgrade the Venezuela offices. -The infrastructure situation after the upgrade. (This is shown by separate

As the competition realized that Dell 's model is operating with efficiency, the other manufacturers also introduced their own direct selling models. • IBM introduced the Netfinity Direct program • Compaq acquired DEC and introduced the DirectPlus program • HP, although skeptical of the Direct selling model did make a modest attempt at direct selling through their web service, HP shopping village. • Gateway was introduced which was the worlds second