Compaq to cut desktop prices by as much as 15%

Article Abstract:

Compaq announces plans to immediately cut prices on its desktop microcomputers by as much as 15 percent, even as President and Chief Executive Officer Eckhard Pfeiffer says the company may ease up on its strategy of ferocious price cutting. However, Pfeiffer refuses to say that the company plans no more major price cuts. In Jun 1992, Compaq simultaneously jettisoned its image as a manufacturer of costly, elegant microcomputers and inaugurated a microcomputer price war by rolling out a family of low-end computers and slashing prices on its remaining machines. The new strategy boosted Compaq's net income by 63 percent in 1992, but investors are worried that the price war is hurting profit margins in the industry. Still, rivals will probably respond to Compaq's latest move by cutting prices on their own products.

Microcomputers, Prices and rates, Price cutting, Microcomputer, Market Analysis

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Compaq tracks computers' ease-of-use

Article Abstract:

Compaq is increasing its reliance on the company's human-factors laboratory as a means of anticipating, studying and providing its notebook and desktop computer customers with useful ergonomic features. Compaq's human-factors lab employs 13 researchers, with plans for five more, all of whom study the actions of computer-users in real-life environments to determine which system's features and software are most beneficial. Compaq has used this research to refine the keyboards, pointing devices, scanners, power switches and packaging of its computers. Compaq is not the only computer manufacturer making such investments. As the notebook and desktop-system markets become more crowded and competitive, vendors are searching for innovative ways to add value to their products.

Microcomputers, Research, Services, Quality management, Quality control, Market research, Ergonomics, Company services, Marketing Research

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