John, >>>The more I think about the fact that in the new Compaq line, the consumer won't be able to get a Pentium PC below $1200., the more I believe it could be a strategic mistake for Compaq. <<<
Those were my initial reactions also, however, reviewing Compaq management objectives, the picture appears a little more complex.
Compaq has stated that their objective is to become one of three largest computer companies in the world by the year 2000. They think they will achieve this through strategic alliances with systems integrators and become a total enterprise systems solutions provider. They will provide everything from the desktop to LAN switching devices, network interface cards, hubs, routers, ISDN, ADSL interface for Internet Access, UNIX type/size servers(?), and even Network management software.
Since achieving the top position at Compaq in 1991, Eckhard Pfeiffer appears to have executed flawlessly as CEO. So he has had real success and can not be dismissed so easily.
However, what he is trying to achieve is very ambitious - given that Compaq has had no real track record for anything hi-tech. They have primarily been a box maker - doing things that our own Paul Fiondella does - but perhaps somewhat better.
His acquisition of Tandem attest to his desire to grow - but doesn't show any apparent ability to leverage synergy through acquisitons.
My own feelings are that the Intel/HP alliance on the Merced has forced his hand - and he is declaring independence and will now grow through acquisitions and other means.
Given his proven success, Eckhard Pfeiffer, has to have some things up his sleeves. Look for some kind of spectacular acquisition(s). How about Netscape, WSTL, SGI, and/or Digital?
Any thoughts?
Mary Cluney |
