In this record we are going to analyse why Hewlett Packard, as a leader, chose to make a merger with its competitor Compaq. We chose this problematical to analyse the different strategies did by this group after the merger but also to analyse the new policy of the group.
We are wondered if without this merger, HP will be still the leader on the computer market; if there will be a lot of changes concerning the different strategies.
HP was founded in 1939, in California, by two engineers, and had known several managers. Calry Fiorina was one of the most forwarding CEO who undertake performance and productivity oriented decisions. Compaq Computer Corporation was created in 1982 by three former executives of Texas Instrument. They made technological performances by producing the first lap top for example. Then they were among the leaders in the computer market.HP purchased Compaq in a very critical moment for computer market and in May 2002, this merger disturbed the computer market because this market was not doing well because of structural problems. Besides, this merger is one of the most important in the history of stock exchange markets.
In our file we analysed company’s strategies because during and after the merger, different strategies were applied to get this merger a success. Concerning the marketing and technological strategies, the idea was to keep Compaq products, which was sold under HP logo. There were no big innovations expected. This merger put HP among the leaders. Marketing changes implied some changes in the structure of HP. Some modifications concerning employees have been made. HP laid off 15000 employees among 150000 employees through the world.
Before the merger HP had a positive cash flow rising to 2.7 billion USD in 2000. One year after, it had fall down to 0.3 billion USD. However, after the merger HP recovered a positive cash flow of 2.5 billion USD in 2004. Before the merger, HP was split into 4 SBU. The...