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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Windseye who wrote (20283)3/7/1998 1:47:00 PM
From: Mike Gordon  Read Replies (1) | Respond to of 97611
 
<Was the sub zero strategy not working?>

I think the primary intent behind the sub 1K strategy was to
a): Gain market share, and
b): impose on DELL just before Christmas. We should have recognized the impact on earnings. Where I live, you can buy a case (24 cans) of Coke for $3.76. Pepsi doesn't stand a chance. From history, look what Standard Oil (ESSO) did. The question is `will giving away CPQ boxes payoff in the future?' It may not. Users of the sub 1K might switch to DELL feeling that the DELL product is a natural upgrade to the CPQ.

Mike Gordon




To: Windseye who wrote (20283)3/7/1998 2:55:00 PM
From: gc  Read Replies (3) | Respond to of 97611
 
You see CPQ's DEC merger is an act out of panic. They knew what's coming. They felt the pressure from DELL. They knew they couldn't compete. They ran for their life. They decided to run to higher ground (enterprise market) where they felt safer. But, it's a little late. Their tails were bitten off.


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