Compaq loses ground in Japanese computer market; share slips despite overall surge in PC sales as Fujitsu and others gain

Article Abstract:

Compaq's market share in Japan, the second-largest PC market, has fallen from 3.9% in 1994 to 3.4% in 1996. Japanese competitors Fujitsu, with 22% market share, and NEC, as well as IBM and Dell, are doing well in the Japanese PC market, which grew 70% in 1995 and 40% in 1996. Compaq CEO Eckhard Pfeiffer attributes Compaq's difficulties to its 1995 price wars with Fujitsu, and its current refusal to match Fujitsu's pricing. Analysts suggest that Compaq has not responded well to trends in the Japanese market. In 1995, Compaq focused on corporate sales, while the consumer market was growing at a phenomenal pace. Compaq is also trying to enter the high-end enterprise market, where many companies already have relationships with NEC and Fujitsu, based on their prior mainframe experience. Compaq has no plans to introduce the low-cost consumer PC it rolled out in the US, even though the Japanese consumer market is very price conscious.

Electronic Computer Manufacturing, Analog & Hybrid Computers, Microcomputers, Compaq Computer Corp., CPQ, International aspects, Market share, Intel-compatible system, x86 compatible computers, Company market share, Company business forecast/projection, Company forecasts

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Japan's PC firms boot up to invade U.S.; Hitachi and Fujitsu are leading latest foray

Article Abstract:

Japanese PC firms prepare to compete against US PC makers, with Hitachi and Fujitsu leading the pack. Hitachi is expected to unveil plans to enter the US PC market by Spring, 1996, and Fujitsu is expected to follow Hitachi into the US market by the end of 1996. The Japanese companies plan to complement their high-quality manufacturing and engineering capabilities with faster responses to the market. These companies plan to mimic US PC rivals by creating more independent personal computer units and by giving non-Japanese management in the US more control over marketing, design and pricing decisions. Hitachi initially plans to focus on the high-end notebook market with eventual expansion efforts focussing on a server line. Increase Japanese competition is likely to shake-up the US notebook market, particularly for fringe companies lacking the resources of these computer giants.

Microcomputers, Planning, Hitachi Ltd., International competition (Economics), Laptop computers, Notebook computers, Notebook computer, Company business planning, Japanese Competition

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Fujitsu readies new products as mainframes wane; company, like IBM, has been slow to see the danger as the industry changed

Article Abstract:

Fujitsu Ltd, the world's second-largest computer company, has the largest share of Japan's mainframe computer market. Fujitsu is a Japanese equivalent of IBM, and like IBM, Fujitsu has responded slowly to the contemporary trend away from mainframes. Companies are 'downsizing,' moving to networks of workstations and microcomputers, and consequently, both IBM and Fujitsu have encountered difficulties. In 1993, Fujitsu reported its first loss of 19.2 billion yen ($175.8 million). For its part, Fujitsu still is confident that mainframes will continue as viable products, though the company adds that it intends to focus more attention on software and will will start selling smaller 'open' computer systems

Management, Company Profile, Mainframe computers, Trends, Outlook, Strategic Planning, Mainframe Computer

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