Pushing ahead: Compaq plots strategy to widen its horizons beyond a niche in PCs; within new industry group, it hopes to set a standard for advanced computers; problems in earlier foray

Article Abstract:

Compaq Computer Corp invests $135 million for a 13 percent stake in Silicon Graphics Inc, adding another $50 million for access to Silicon Graphics' high-end graphics technology. Compaq also joins the Advanced Computing Environment (ACE), a 21-company alliance that aims to establish a standard for computers based on Reduced Instruction Set Computing (RISC) technology from Mips Computer Systems Inc. What does it all mean? Compaq apparently plans to market ACE computers, starting in 1992. Compaq envisions ACE products that will be microcomputer-sized systems with capabilities that compare with today's mainframes. Compaq hopes to create products that compare favorably with today's scientific and engineering workstations, which will be assembled from off-the-shelf parts rather than depending on proprietary technology. An insider predicts that Compaq's annual sales will increase from today's $3.6 billion to $15 billion by the year 2000.

Computer peripheral equipment, not elsewhere classified, Standards, Planning, Standard, Standardization, Investments, Securities, Silicon Graphics Inc., SGI, Workstations (Computers), MIPS Computer Systems Inc., MIPS, Workstations, Strategic Planning, Canion, Joseph R.

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Compaq reduces prices up to 34% and sues Dell, alleging unfair ads

Article Abstract:

Compaq Computer Corp cuts its prices by as much as 34 percent in a move to make its products more competitive. Compaq's customers, who are choosing similar but less costly products from Compaq's competitors, apparently do not believe Compaq's sales pitches, which have stressed the notion that a superior product is worth a premium price. Compaq admits that the price cuts aim to win back sales. Compaq holds about 3.5 percent of the world's microcomputer market, which is estimated to be worth $36.7 billion. Compaq is suing a competitor - Dell Computer Corp of Austin, TX - which has run ads comparing its prices with Compaq's prices. Compaq claims that Dell's ads are unfair and accuses Dell of false advertising. Michael Dell, chairman and CEO at Dell, says his company will profit from the publicity generated by the law suit.

Marketing, Price cutting, Competition, Lawsuits, Court Cases

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Dell Computer switches its strategy, agrees to sell through Soft Warehouse

Article Abstract:

Dell Computer Corp has made an agreement with Soft Warehouse Inc to sell its microcomputers through Soft Warehouse retail chains. The move is the first for Dell, which has remained exclusively a mail-order firm until the agreement was reached. Analysts say that Dell has realized the limitations of mail-order and is looking to reach less technical users and increase future revenues. The agreement is also a boon for Soft Warehouse, which has been struggling to find recognizable brand names for its deep-discount warehouse stores. Nearly half of Dell's current customers are large corporations, and sales are expected to top $500 million in fiscal 1991, as compared with $388.6 million in fiscal 1990.

Contracts, Distribution, Distribution Agreements, Soft Warehouse Inc.

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