A small company called Compaq which found by using 3000 U. What is Best for Grandparents? Most-Wanted NBA 2010 !S. Sizzling eyeglasses Hits dollars of capital in 1982, it created a business record which turnover is 11 million dollars in the first year after it found in the first year. Its sales reached $329 million 3 years later in 1985, a new record in the computer industry.

Compac provided good product with low price. It earned a lot from its brand. The Apple company launched the first price battle of PC in the spring of 1991,which caught Compac off its guards.

Feifeierna believes that what consumers focus on first in the purchase is the price of goods. So the opinion that best products have the market even though the high price is wrong. So he cut a third of the price of Compaq personal computer. In the meantime, improve the marketing channel to make famous brand products be available for purchase by consumers at a low price. Compaq turned losses into gains soon. Compaq defeated numerous opponents with similar strategies. In 1994, it became the kin of personal computers which was two years earlier than their original goal.

Continuous price reduction requires the reduction of cost. Not only reduce the cost of each link of production and expand the scale of production. According to statistics, sell something at one dollar in the same way, the cost of Compaq is only 15 cents and HP is 25 cents and IBM is 27 cents, thus it can be seen that how excellent the skill of Compaq is in the aspect of reducing the cost.

Pheiffer knew clearly that its success came from its outstanding capacity to exploit the market. With increasingly fierce competition, however, profit would be thinner and thinner. If operating strategy isn`t revised in time, tremendous headway won`t be possible. Therefore, he re-set a target for Compaq to strive for. The new goal was to "become the world famous computer provider who provides hardware, software and the operating system."

Enterprise solution is certainly prospective markets with rich profits, but if stepping into the market, you should need advanced technology and consummate global technology service network. While they were what Compac lack of,they had to take the shortcut of merger to become a large company of full abilities. Starting from 1995, Compaq merged and acquired a few medium enterprises, although increased greatly in capability, there is big distance with grand enterprises, and thus it began the endeavours of snake swallowing elephant.

DEC company, being in trade for more than 40 years, had advanced technology and comprehensive global service network. But due to poor operation, it was caught in a prickle. Thus it became the ideal M&A object of Compaq, in Januray of 1998, Compaq realized M&A of DEC. After M&A of DEC, Compaq also gained many first talents, and obvious scale merit, and producing cost of units if the new company has been obviously reduced. The market experience of Compaq was what DEC lacks. The alliance of two giant companies significantly raised their competence.

In less than seven years ,Pheiffer turned a troubled mid-size company into the second largest in the computer industry. However, [happiness and misfortune always come hand in hand." Right when Compaq was jubilating for leaping into the second place of computer industry, it was also put under great pressure from backbreaking debt due to its ambitious acquisition. On April 13th, Pfeiffer had to resign. Price-cutting master Pfeiffer finally sank in the price reduction competition, playing a tragic role.