Compaq Computer Corporation (B)

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Prize winner

Case

Reference no. 396-062-1

Subject category: Strategy and General Management

Authors: Farshad Rafii; Sam Perkins

Published by: Babson College

Published in: 1996

Length: 10 pages

Data source: Published sources

Topics: Competitive strategy; Industry analysis; Organisational transformation; Technological change; Product development; Personal computers

Share a link: https://casecent.re/p/21282

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Abstract

This is the second of a four-case series (396-061-1 to 396-064-1). The series chronicles the history of Compaq from inception in 1984 to mid 1996. Compaq''s history is fascinating in many respects: (1) it achieved Fortune-500 status in record time; (2) it beat IBM at IBM''s own game in the PC business; and (3) while it got into difficulties during the early 1990s, it succeeded in turning around extremely rapidly and propelling itself to the number market share position two years ahead of announced goals. The (B) case describes the competitive and profitability problems Compaq experienced in 1991 and some of their possible underlying factors.

Location:

USA

Industry:

Computers

Size:

USD14 billion sales

Other setting(s):

1984-1996