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Technology Stocks : Compaq
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To: Diamond Jim who wrote (22588)3/19/1998 1:00:00 PM
From: Stephen  Read Replies (2) of 97611
 
Usually, the only time the strategy of a price war works is if you are the biggest player and want to drive competition out of business. I cannot believe that Compaq is not gaining market share with its tactics and there are an awful lot of smaller name companies (Tiger et al), who are about to lose big time. Course, once the market share is gained and the consumer is happy with your product, you can raise prices again. I think that is the reason for the deal with Radio Shack - Compaq have targeted a part of the market none of the major players have been in before. Not such a bad idea ... but time will tell if it pays off. What it does show is that perhaps management are really looking at what is going on and trying to position themselves to grow in an area where consumers, because they want to partake in things such as the internet, have to buy a box of one kind or another. Heck, why not have a brand name intelligent box if its affordable ... Conceptually, I like that and maybe management do know what they are doing ???
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