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Compaq Computer Corporation: The Dell Challenge
Strategy:
By 1995, Compaq was a global company, and was the leader in personal computers. Compaq is a Fortune Global 100 company, and with sales over $31 billion in 1998, Compaq was the second largest computer company in the world. Much of Compaq’s success was due to their low- cost focused strategy in the PC market. The PC was a growth market, and Compaq was the industry leader due to their low cost, innovated strategy. Compaq was able to control costs and quality better than any other PC maker by using low cost chips, outsourcing assembly and tightening sales terms and policies, and therefore, was able to get innovations to market faster. ... This theory holds true for Compaq, as they are the low cost leader in the PC market, at this time, and they attribute their success on the ability to keep their costs low.
Approximate Word count = 604
Approximate Pages = 2.4
(250 words per page double spaced)
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