HP+COMPAQ In search of scope and scale By Swapneel Khavare MMS Finance HISTORIC EVENT ? A merger as big and nervy as Hewlett-Packards $ 19 million acquisition of Compaq computing device in 2002 had never taken place before in Technology constancy. Carly Fiorina ,HPs CEO, believed it was the right wing move for HP The leaders technology company in the world ? ? HP William (Bill) Hewlett and David (Dave) Packard originated a company in a garage in nearby Palo Alto,california ? 1939, Packard and Hewlett established HewlettPackard (HP) in Packards garage with an initial capital investment of US$538. ? Kickstarted the ti vale?s progress ? PREMERGER POSITION OF HP-2000 Ranked 13th in fortune 500 ? Turnover US $48.8 ? 85500 employees ? Carly fiorina: Chairman (September 22) ? number largest computer manufacturer ? leader in Desktop computers, Servers, Peripherals & services. ? bread infrastructure,high-end Super dome server line in September. ? HP-2 001 challenge: a advanced business unit, HP Services, reporting in a flash to the CEO ? May: systems and services base on the new Itanium processor jointly developed by HP and Intel. ? Industry stumbled, meeting growth targets became difficult.

? HP-PRODUCT PORTFOLIO Laptops/Notebooks ? Paltops/PDA ? Printers & make consumables ? Digicams ? Scanners ? Moniters ? Mainframes ? COMPAQ Joseph R. Canion,Jim Harris & Bill Murto in Feb 1982 ? Initial investment $1.5mn. ? Manufactured & exchange IBM compatible computers ? COMPAQ-PRODUCT PORTFOLIO effort computing group ? Mainframes servers workstations ? Int ernet products networking products ? m cham! pionymaking(prenominal) desktops ? Portables ? Small and mean(a) business solutions ? HURDLES FOR HP Overall application struggling ? Adapting to the innovations ? ambition in printing ? IPG business not gaining traction ? shrinkage margins ? WHY MERGE?? Eliminate one player in an oversupplied PC Market ? To compete with IBM and separate companies ? Reduce Costs....If you wishing to get a full essay, determine it on our website:
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