Compaq Computer finds itself where it once put IBM; firm must cut costs but maintain quality to justify its higher prices

Article Abstract:

Compaq Computer Corp responds to criticism from analysts and customers by reducing the prices of some of its computers and improving its customer relations. While the high-end computer maker still does not permit its customer service representatives to take orders for computers, the response to complaints seems better. This is a major change for a company that used to tell callers 'Compaq doesn't talk to the public.' The changes are in response to a tougher, more competitive market, the company's first quarterly loss and the need for cost cutting and layoffs. Compaq does not intend to compete directly with the least expensive systems available via mail-order, however. It remains committed to high-quality machines, but acknowledges that better customer relations and a clearer approach to sales to explain why Compaq computers are worth the cost are necessary. Expansion of Compaq's distribution channel with the use of superstores and other retailers, development of entry-level microcomputers, use of outside suppliers and replacement of co-founder Rod Canion by CEO and Pres Eckhard Pfeiffer are part of the plan.

Author: Allen, Michael, Lancaster, Hal
Publisher: Dow Jones & Company, Inc.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
Analysis, Customer service, Customer relations, Company Profile, Pricing Policy

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Compaq, in first bid outside core area, plans laser printers for PC networks

Article Abstract:

Compaq Computer Corp plans to manufacture laser printers. This is the first time Compaq has attempted to manufacture a product outside the microcomputer business. The new printers, which will use printer engines from Fuji Xerox Co of Japan, will be designed to be connected with networks of microcomputers. Industry observers say Compaq's printers will directly compete with Hewlett-Packard's LaserJet IIIsi products, which currently lead in an especially fast-growing part of the market. Overall, the laser printer market was valued at about $1 billion in 1991.

Author: Hooper, Laurence
Publisher: Dow Jones & Company, Inc.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
Laser printers, Laser Printer, Industry Analysis, Strategic Planning, Manufacturers

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Subjects list: Planning, Computer industry, Compaq Computer Corp., CPQ, Competition
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