NAJIHAH MY DESIGN: BRANDING DESIGN AND MANAGEMENT

TASK 1: RESEARCH

Compaq Computer Corporation

The first Compaq computer

In august 1981 IBM took advantage of the power of newly- developed microprocessor technology to successfully introduces the first IBM Personal Computer. The New PC Industry was born and was exploding with the extraordinary potential that Spindle top has demonstrated eight- one year earlier. The race to claim a piece of the tremendous profits that this shift promised included large, well – established computer companies as well as dozens of new start- up operation that seemed to appear weekly.Instead, on the back of a Hop placement, they did their initial sketch of an IBM- Compatible PC that was small enough to be transportable. In the days before technology allowed for components to be shrunk to “ laptop “ size, the Compaq lug gable had its first design. Compaq secured the backing of Ben Rosen, a noted venture capitalist and president of Sevin – Rosen Partners; who invested $2.5 million and became the company’s first Chairman. Compaq Computer Corporation was born in February 1982.

Compaq’s early success was unparalleled in the annals of American business history. It sold 53,000 units for over $111 million in its first year of operation in 1983. Its early staff of twenty well –seasoned computer industry professionals rapidly grew to 600 in that first as Compaq differentiated itself form its starts – uppers by relying upon industry veterans and by instituting a marketing strategy that rewarded , rather than competed with, a growing network of retail dealers. This was in market contrast to other companies of the era who sought to fill demand channels by any means necessary, directly or indirectly. This often meant that a company’s direct sales force would compete with the company’s dealers for large sales to corporate clients.Compaq grew rapidly as it spread across 150 wooded acres in the suburbs northwest of Houston. Sales escalated to over $500 million in 1958 when Compaq began trading on the New York Stock Exchange , and in 1986 it became the first company in history to claim a place on the Fortune 500 list in only its fourth year of existence. Expansion into Europe and Asia followed quickly and Compaq ranked 157 on the Fortune list in 1989, with sales of over $ 2 billion , when is successfully net an important challenge. It sourced critical parts like the microprocessor from Intel, the operating system from Microsoft. Companies like Compaq could source the same components and produce systems that were internally compatible to IBM’s . IBM developed a proprietary internal bus structure called Micro Channel and a complementary as Cooperating systems called OS2.This threatened to cut off all competitors by making them systems incompatible with the IBM architecture. Software companies would have to develop multiple versions of code and peripheral device makers would also be forced to choose between the two or else to double their development costs. Large corporate end users, who benefited from the costs saving- driven options presented by the IBM-Compatibles, would risk having a burdensome mix of equipment on their premises, greatly adding to infrastructure costs . Micro Channel Architecture provided significant performance enhancements all clone manufacturers would have to spend million in development costs to complete in a fragmented market.Compaq was perhaps the only company with the size and influence within the industry to reverse this situation. It rapidly funded the prototype EISA Bus (Extended Industry Standard Architecture) and opened the engineering specs to any and all user. A consortium of computer and peripheral companies quickly formed around this standard and offered a strong alternative to the IBM product. Within a year, IBM also adapted the EISA standard and the concept of open – systems within the PC industry was preserved. It is almost impossible for industry observers today to envision how the growth of networking and the Internet would have been possible if IBM- dominance had been permitted to stymie open competitor on the desktop.
Compaq’s growth through the later 1980s mirrored that of the PC industry as a whole. Compaq consistently surpassed industry benchmarks, however , and much of that performance can be attributed to its rapid product development cycle . It was usually first to market as new versions of standard component’s were introduced as, for example, it was first with the release of systems based upon Intel’ 368 chips. It beat IBM by six months and grabbed significant market share. By 1994 it had passed IBM to become the worlds largest PC manufacturer.In 1991, after posting sales of $3.6 billion and profits of $44.5 million in 1990, Compaq announced a decline in numbers and a $70 million third quarter loss. Camion was forced to resign as CEO and was replaced by Eckhard Pfeiffer, the head of Compaq’s European operation. Compaq quickly regained footing and in 1992 announced a remarkable sixteen new products including its first printer. The product line was expanding in both directions, with lower cost models aimed at the home- consumer market as well as higher-end machines designed for the corporate server market.The use of industry – standard component can be healthy for end- users but will generally put pressure on manufacturers. Standardization breeds commoditization which often makes price the product differentiation. Low margins drove many PC – markets out of business in the 1980s and 1990s. Compaq embarked on a bold acquisition plan in the late – 1990s. In 1997 it paid $4 billion to acquire Tandem Computer Incorporated. In January 1998 Compaq took this strategy further. It agreed to acquire Digital Equipment Corporation for $8.55 billion. Its PDP-11 minicomputer produced in the mid- 1960s , changed the free of computing around the world.Its product line was under severe pressure from below by the advent of high performance workstations made by Sun Apollo and other. The high- sewer vendors like HP and IBM. Networked PCs were supplanting minicomputers in the mid- size market. DEC Still retained some formidable competitive advantages. In addition to its valuable customers base and its lucrative, recurring service revenue, it possessed some impressive technology like its Alpha RISC chip design and its Alta Visto program, among the first Internet search engines. Compaq was swallowing two large companies in a short period of time. Employee totals jumped, with 22,000 consultants being added in the DEC deal alone. Layoffs commenced directly with 5000 employees being severed almost immediately. Revenues increased dramatically, shooting to $31 Billion in the combined 1998 statement. Compaq struggled with merger issues for the rest of the 1999, resulting in more job cuts, a twenty- two percent decline in share price and the ouster of Pfeiffer as CEO. He was replaced by Michael Capellas, Compaq’s CIO. Domestic and international continued to plaque Compaq. In 2001, Dell Computer of Round Rock, Texas, sup passed Compaq’s PC.Workstation sales to take over the numbers one spot in this market. Facing a difficult outlook, Compaq agreed to a $21 billion merger with Hewlett Packard Corporation of Polo Alto, California. Despite fierce opposition from the family of founding- partner Bill Hewlett the merger was approved by share holders of both companies. In 2002, Carly Fiorina, HP’s Chairwomen and CEO, led the combined companies Layoffs eliminated over 16000 jobs in 2002 with another 5000 a Attributed to the merger in 2003. By 2003 Compaq ceased to operate as a separate company and all merger functions had been completed. Hp has gone on to past record revenues and earnings for 6 consecutive quarters into Q2, 2006. Compaq was the first highly visible, high- technology company to be founded and run from Texas. Compaq was a key step in updating that image o reflect the impressive intellectual capital of the state.

Hewlett-Packard (HP)

HP (Hewlett-Packard) is a multinational information technology (IT) company that sells hardware, software and related business services.

HP product lines include PCs and other computing devices, enterprise and industry standard servers, storage devices, networking products, software, printers, scanners, plotters and other imaging products. The company introduced handheld calculators, the first commercially distributed data processing system, Laser Jet printers, and (jointly with Intel) the Explicitly Parallel Instruction Computing (EPIC) architecture.

The company's corporate culture is encapsulated in an approach known as the HP Way, a set of values designed to foster innovation, respect for individuals and value for customers.

Founded in 1939 by Stanford University Engineering graduates William R. Hewlett and David Packard, HP could be considered the first garage startup. Bill and Dave (as they were known within the company) first worked in a single-car garage manufacturing audio oscillators. The garage was declared a California State Historical Landmark in 1989 and is considered the birthplace of Silicon Valley. The company's headquarters are in Palo Alto, California.

In October 2014, HP announced that it would split its PC and printers business from the business segment selling enterprise products and services, as HP, Inc. and Hewlett-Packard Enterprise.

Strengths of HP Company

One of the strengths of HP is it has a strong market position. After HP and Compaq announced to merger On September 3, 2001, HP became the world's most big computer hardware and peripheral company all around the world. There have many benefits to HP being a large company such as leading positions in market of IT services, management software, PCs, storage and printers. Especially printer market, 40% market share of HP proofed that its domination the global printer market. This merger also helps HP made a high profit $87 Billion of Global Technology Leader. The other strength is that it provides its products and service into more than 170 countries including the undeveloped and the developed nations.In 2008 HP is acquiring EDS Inc. The next strength of HP is always having excellent products portfolio diversification.

Weaknesses of HP Company

One of the weaknesses of HP is high debt level. In this decade, HP has a high risk of debt level compare to the others competitive company like Dell. From the HP debt to equity ratio data shown that HP was reached the highest value 0.9292 in this July 31, 2012. Debt to equity ratio is a leverage ratio to indicate the comparative amount of shareholders' equity and debt used to finance a company's property. It shows how the company has financed its property. A high debt equity ratio express that the company has been aggressive in their financing growth with debt and it results in volatile earning.

Opportunities of HP Company

Focusing on emerging technologies-In this modern world, Hewlett Packard Company has introduced new digital printing technologies on the part of its graphic arts offering. There is a full wireless HP Photo smart printer line-up. There are HP Indigo presses, HP Inkjet Web Press and HP Latex Inks. In 2010, Since Hewlett Packard launched this technology, theirs sales is rapidly increasing because the digital printing technologies are suitable for students or officers using. It also provides the consumer to print out the picture and information in the less time.

Threats of HP Company

Higher competitive in the market share-The biggest competitor of Hewlett Packard is Dell. In this few years, the sales of Hewlett Packard are more than Dell. However, Hewlett Packard also kept fully to expand theirs business. Hewlett also obtain the most up to date company information available. In addition, there are also some competitors for example Toshiba, Lenovo Group and Aver. This all competitor in IT market competes in terms of quality, brand, price, technology, reputation, distribution and range of product. In addition, the competitors also face competition from local companies and from generically-branded or white box manufacturers.The printing and computing markets are hyper-competitive. Some nimble competitor will offer lower prices than Hewlett Packard; it will direct af reafect the sales products of Hewlett Packard.

Final Task : Design Applications

This work to be rejected because this work not a perfect work and not a best work. this work also can't to approve to the final task. This also bring me a more moral value example do the work to be the best work and not fad up when do the work.