KAD,
Every company wants to be #1 in something, but the reality, for the most of the times, is not what they expect.To talk up the stock price is ok, but to really be #1 ,
it takes actions and strategies!! What is HP's strategies to reach that goal ?
Now HP wants to be #1 in PC by year 2000, the question is what will make them to be #1 ? Will HP offer products which will have better Price/performance ratio ?
Will CPQ, DELL, IBM will stand still in the next couple of years ? or HP's managers
will play a game of magics ?
To compete in the PC business, the strategy is really nothing more the pricing, and HP is not the king in pricing. As for the qualiy , there is really no much difference
nowadays on PCs whether they are sold by CPQ, HP, IBM, or DELL, they all use
components from similar sources, they all used CPUs from INTC, AMD, CRYX.
So, why HP claims that it will be #1 in PCs by year 2000 ? What is the strategy ?
With the merger of DEC,CPQ is to attack the high end enterprise computing business.
HWP should prepare for the comming competition from CPQ on the enterprise computing business where HP gain most of its profit from. If CPQ lost in enterprise
business, not too much for CPQ to lose. But if CPQ wins, HWP will be in very big trouble, especially if HP can't make its dream of being #1 in PCs by 2000 comes true,
and at the same time lose its enterprise business (high margin) to CPQ. |
