HP, Compaq, and the Computer Case Study

Other partnerships with software companies provide HP with personalized value-added services for broadband Internet services and solutions.

Analysis of Compaq's competitive advantage over HP and other computer companies show that even though it has had experience with it servicing, its focus on small- to medium-sized computer companies did not, apparently, induced growth within the company, even though it services comprise 30% of the company's total revenue. The stagnation of growth illustrates how it servicing in Compaq is still on its preliminary stage, primarily because of the small scope of its clientele, even subsisting to "older" computer products, such as Tandem and Alpha, for use in its it services and consultancies.

Looking at the competitors of HP-Compaq, three major companies emerged as the leaders of the it service market: Electronic Data Systems (EDS), IBM, and Unisys. EDS' advantage is that it has a partnership with Dell, offering services such as help-desk service, asset management, hardware maintenance, configuration management, and iMAC. IBM, apart from being one of the leading personal computer service provider, is also specializing in consulting, outsourcing, and technology integration. Lastly, Unisys, similar with IBM, centers on outsourcing services and network integration.From the analysis above, it is evident that HP, on one hand, has a strong partnership and resources on it servicing, although exposure to the it service market is not developed, simply because the it services it provides are limited to HP's own clientele only. Compaq, on the other hand, has the experience and appropriate services that are essential for the establishment of it servicing and consulting. However, it does not have the latest technology concerning it service and Compaq's services are limited only to small- and medium-sized companies.

In sum, the HP-Compaq merger faces the challenge of breaking into the it service industry. It is recommended that HP's advanced it service technologies be utilized and Compaq's clientele and experience in it servicing be used to capture at least, for the initial two years of the merger, a small percentage of the market. If this plan is implemented optimally, HP-Compaq will, in a few years' time, be able to capture a substantial share of the market and has the potential to develop as one of the leaders of it servicing, given HP-Compaq's long experience in….....