THIS ARTICLE IS BEFORE MERGER
(SEE THE INTENDED STRATEGY)
Analysis of the Proposed HP-Compaq Merger via the Value Framework
Excerpted from the February 2002 issue of VMS3.info (http://vms3.info)
Hewlett-Packard and Compaq have the opportunity to create one of the most successful enterprise-computing firms in history, but all mergers face challenges and issues that must be overcome to achieve synergy of combined partner strengths. The Value Framework shows that a HP-Compaq merger strategy must be deployed, managed, and evolved in the key areas of customer facing processes to create a seamless solution discovery and provisioning experience.
The key to predicting strategies for their successful merger is in understanding the "four S" quadrant of Servers, Services, Software, and Storage, as the key components of process in an enterprise solution design. Process integration of servers, software, storage, and services will be the key to building market share in Fortune 5000 firms and the growing B2Bi (Business to Business integration) market.
Using the Value Framework, a methodology can be applied to analyzing how a HP-Compaq merger strengthens the combined companies' position against IBM, Sun, and Dell in enterprise and consumer markets. Together the HP-Compaq entity could garner almost forty percent of enterprise markets, where the biggest competitors are IBM, Dell, and Sun.
HP and Compaq often compete head-to-head in enterprise and consumer markets. However, HP's desire for a stronger professional service offering to compete with IBM, makes Compaq a logical choice. Compaq, which has a global services division of almost 40,000 employees, is moving strategically towards IT business solutions in the key markets, where together with HP, they can compete effectively against IBM, Dell, and Sun.
HP-Compaq can build market share in service using two complementary but different approaches.
The first approach is to ensure integration...