| BUSINESSWEEK ONLINE : MAY 3, 1999 ISSUE | ||||||||
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| INFORMATION TECHNOLOGY
What Needs Doing GET REAL ABOUT THE PC INDUSTRY With revenue growth in the PC industry under 5% and margins shrinking, Compaq needs to get realistic. Stop promising 30%-plus revenue growth and deliver consistent results. TAKE THE HIGH ROAD Buying Digital was supposed to let Compaq bring PC-like efficiencies to Big Iron. Compaq has cut costs, but it has yet to come up with a soup-to-nuts product strategy to lure corporate customers away from IBM, HP, and Sun. BE SERIOUS ABOUT SERVICES One reason IBM's services business is growing over 20% is its expertise. Compaq needs to add consulting experts in fast-growth markets like telecommunications and health care. BE MORE DIRECT With almost all of its PCs still sold through stores or distributors, Compaq has to push direct sales more aggressively. By cutting distributors, Compaq should lift direct sales to 25% to 30% of its total, reflecting the percentage of industrywide PCs sold direct or online today. GET WITH THE NET IBM and Sun Microsystems are seen as E-commerce leaders thanks to strong products and a clear marketing message. Compaq's Net strategy is confusing, short on the software tools for online commerce and too focused on selling boxes instead of solutions. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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Can Compaq Catch Up? TABLE: What Needs Doing TABLE: Compaq Hits Another Pothole CHART: Compaq's Stock Price A Tough Call, but the Right One Commentary: High-Tech Honchos Needn't Come from High Tech INTERACT E-Mail to Business Week Online | |||
