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Compaq And Hp Essay

1434 words - 6 pages

The merger between Hewlett-Packard and Compaq in my opinion was strictly for financial gains between the CEO Ms. Carly Fiorina and some off the executives on her staff. In order to justify this opinion, one must look at the recent strategic planning of the company first before the realization that Compaq and its brand name was soon to be systematically eliminated out of the picture.Corporate strategy describes the company's overall direction in the terms of its general attitude toward growth; along with the business strategy should emphasize the competitive position of the company's product and services in the specific industry the company is competing in. It appears from the out set of the merger between HP ands Compaq that the strategic vision of the executive leadership was to acquire Compaq and then merge their product lines into Hewlett-Packards. This merger is systematically eliminating the Compaq name except for a few products that were significant for corporate growth, and to keep profit levels up due to customer recognition of the Compaq brand name.This is explained from an article taken out of BusinessWeek.com - In a significant shift, HP is moving away from using the Compaq name in business products, despite better brand recognition in corporations. The Compaq name is getting pushed further aside in the no-longer-so-new Hewlett-Packard. A year after completing its acquisition of Compaq Computer, HP is downplaying the Compaq name in its business products, arguing it is easier to sell one brand to corporate customers."Over time, all of your business products will become HP," Alex Gruzen, the head of the company's notebook and handheld computer unit, said in an interview on Monday. Gruzen said it would be easier for HP's corporate sales force if all its enterprise products carry the same primary brand name. The move represents a significant shift for HP, which had kept the Compaq name on in many of its business products, noting the brand's better adoption and reputation among IT managers when it came to laptops and desktops. In the commercial notebook market, for example, Gruzen said that Compaq machines outsold HP counterparts by a ratio of 3 to 1.But in a crop of business-targeted portable computers announced this week, the Compaq name will show up only in a small line of type near the model number. The first model in the line, the HP Compaq NC4000 -- a thin and light notebook based on Intel's Pentium-M processor -- does this and emphasizes the HP name instead. In addition, the tech giant's next tablet PC, which is in the works, will feature the HP brand, rather than Compaq name that adorns the current model, Gruzen said. "What makes sense going forward is one HP brand," he said.The company said in March that it would do away with the Evo name, one of Compaq's best-known subsidiary brands. With the move, the Compaq name becomes more of a model name, filling the role that Evo had played. HP has already dropped the Compaq brand from many...

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