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RESEARCH REPORT
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COMPARATIVE ANALYSIS BETWEEN DELL & COMPAQ
SUBMITTED TO SUBMITTED BY
DEAN RAVINDRA KUMAR PANDEY
(MBA Deptt.) MBA (III Sem)
MIMT, Gr. Noida Roll No. 0915270082
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DECLARATION
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ACKNOWLEDGEMENT
Last but not the least, I also take this opportunity who have directly or
indirectly contributed through their valuable suggestion, and presence during
completion of this research.
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INDEX
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DECLARATION
72
ACKNOWLEDGEMENT
Last but not the least, I also take this opportunity who have directly or
indirectly contributed through their valuable suggestion, and presence during
completion of this research.
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PREFACE
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TABLE OF CONTENTS
INTRODUCTION
THEORATICAL FRAMEWORK
OBJECTIVE OF STUDY
RESEARCH METHODOLOGY
COMPANY PROFILE
FINDINGS
LIMITATION
CONCLUSION
APPENDIX
• QUESTIONNAIRE
• BIBLIOGRAPHY
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• REFERENCE
INTRODUCTION
First thing to understand is that these two companies have very different
business practices. I have learned that Compaq is more of a, “Wait and see if
it goes bad…” type of company and Dell is more of a, “We have a problem,
lets solve it…” company. Let me give you an example. Compaq maintains a
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large list of “Service Advisories” that are regularly distributed to the support
vendors. These service advisories are, for the most part, problems that
service. In other words, these are issues that Compaq knows cause problems,
yet will not fix until the problem surfaces. One particular example that
comes to mind involved a certain model of the Presario line. They were
shipped with a hard drive that was later determined to fail often. Compaq
issued a Service Advisory for that hard drive that they should all be replaced
drive). Of course, they didn’t alert Presario owners of this situation, for that
would cost Compaq too much to replaced all the drives. So if you had any
problem with your Presario, the hard drive was replaced. But if your Presario
worked fine for the life of the warranty, you had a machine that was destined
to fail.
I can safely say one in four Compaq models has a service advisory issued for
it. That means that you could have a Compaq that has a ‘ticking bomb’
inside. And guess what happens if you are out of warranty when a part with
known issues fails…you are out of luck, for Compaq will not replace it for
free.
Dell, on the other hand, handles those types of situations a bit differently.
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Instead of waiting for something to fail before fixing other problems, Dell
will alert you to the problem and make necessary replacements. On a recent
issue, Dell demonstrated this process. Some laptops on their Latitude line
where shipped with a defective memory module. Dell sent a letter explaining
the situation to every Latitude owner that could have been affected by this
faulty memory. In addition, they sent a diagnostic diskette that tested the
machine to see if it had the faulty memory. If you did have the memory, they
would replace it for free. In my opinion, that is the proper way to handle a
problem. Dell did get some criticism over this issue because they did not
announce the problem as soon as they found out that some of the memory
was defective. There were several reasons for this, and each is very valid.
First off, they needed to research the problem to find out just who was
identify the problem. And third, they needed to ensure they had a large
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-Hardware:
proprietary, meaning you can only obtain it from Compaq. This is very
common with their floppy drives. Usually, their floppy drives have an open
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face, and the slot is actually molded into the front of the case. If you need a
floppy drive, you must obtain one from Compaq. Even on standard interface
devices, Compaq makes things difficult. Some video cards use the APG
interface, yet have a proprietary slot cover. Once again, if you want to
upgrade your graphics card, you have to obtain a Compaq card. Out of
If your floppy drive goes bad and your PC is out of warranty, you can get
one from CompUSA, or anywhere for that matter, for Dell sticks to
standards.
-Software:
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From time to time, you find yourself in a situation where you need to reload
Windows. Not a problem if you have a Dell. Just run the Disk Maker utility
and make diskettes for all your drivers. Then, pop in the Windows CD and
go to work.
If you have a Compaq however, you may have your work cut out for you.
Quick Restore CD. That means that you can’t just reinstall Windows.
Instead, it will wipe the drive—all applications, data, etc—and then install
Windows and all applications that originally shipped with your PC. When
it’s finished, your PC is just like it was when it was shipped. And guess
what; if you get your PC serviced and the technician needs to reload
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Windows, he will use the Quick Restore. Bye-bye data, bye-bye
If you are one of the lucky ones that actually got a Windows CD, you still
have to get your drivers from Compaq’s website. Only you won’t be looking
for drivers, you’ll be looking for Softpaqs. That’s what Compaq calls any
download and they are all named SP#####, where # represents a 5 digit
number. When you find the softpaqs you need, you will want to download
them to your hard drive. When you execute your softpaq, it will do one of
three things. A: it will ask for a diskette and copy an image to that diskette.
B: it will extract to the hard drive in the same directory as the exe. This
means 25 files dumped to the desktop if that was where you downloaded the
file. Or C: it will copy files to the hard drive, then require that you run a
batch file to create diskettes. There is no real way to see what your softpaq is
-Summary:
Cost: US $1,795
O/S: CP/M
Speed: 3 MHz
8 kb, up to 32 KB (29638 bytes free) by incremental 8
Memory:
kb Memory pack on PCB
ROM: 32 kb (up to 64 kb)
Graphic
240 x 64 (Full-Dot matrix)
Modes:
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Colours: Monochrome
Sound: Beeper
Cost: US $4,225
Weight: 30 pounds
Model: Model 68
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1989 Zenith Data Systems Laptop
of the early "real" laptops. It had a 20MB ESDI hard drive, 1.44MB
floppy, 2400 baud built-in modem, 640K of RAM, and had a CGA
"colour" LCD display. All connectivity ports were accessible via a door
in the back.
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Objective of the study
The subject matter for this research Project is to study the consumer’s
Laptops.
decision of consumer’s.
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COMPANY PROFILE
founded the company as PCs Limited with capital of $1000 Operating from
customers' needs and provide the most effective computing solutions to meet
those needs. Michael Dell dropped out of school in order to focus full-time
In 1985, the company produced the first computer of its own design — the
buyers prices lower than those of retail brands, but with greater convenience
than assembling the components themselves. Although not the first company
to use this model, Limited became one of the first to succeed with it. The
company grossed more than $73 million in its first year of trading.
1989, Dell Computer set up its first on-site service programs in order to
compensate for the lack of local retailers prepared to act as service centers.
Also in 1987, the company set up its first operations in Ireland; eleven more
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international operations followed within the next four years. In June 1988,
Dell's market capitalization grew by $30 million to $80 million from its June
22 initial public offering of 3.5 million shares at $8.50 a share. In 1990, Dell
warehouse clubs and computer superstores, but met with little success, and
In 2002, Dell attempted to expand by tapping into the multimedia and home-
handhelds, and Dell DJ digital audio players. Dell has also produced Dell-
In 2002, Dell attempted to expand by tapping into the multimedia and home-
handhelds, and Dell DJ digital audio players. Dell has also produced Dell-
near Winston-Salem, North Carolina; the city and county provided Dell with
million in incentives and tax breaks. In July, Michael Dell stepped aside as
Board. Kevin Rollins, who had held a number of executive posts at Dell,
As of 2009 Dell Inc. has acquired ten companies (eight of them based in the
companies. Dell has not released the financial details for most of these
subsidiary. The company acquired Equal Logic on January 28, 2008 to gain
a foothold in the discs storage market. Because Dell already had an efficient
divested two companies, in 2000 and 2008, selling parts of the company to
Logic in January 2008 for $1.4 billion. The company made the most
acquisitions in any one year in 2008 with three: Equal Logic, The
Dell announced its intent to acquire Perot Systems (based in Plano, Texas) in
center operations
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Technical support
level of support purchased. Dell Inc. brands its service agreements at five
levels for their business customers: (1) Basic support provides business-
of sale); (2) Silver support provides 24×7 telephone support and 4-hour on-
additional benefits over and above Silver support; (4) Platinum Plus support
such as the United States and Canada. On February 4, 2008 Dell launched a
offering customers more options to tailor services to fit their needs. Rather
for non-IT professionals. For the latter, the company offers "how-to" support
Dell has several unique aspects of its support program. For example,
computers use "Service Tags" unique alpha-numeric identifiers and '11 digit
queue. Agents also utilize Dell Connect, based remote-access tool that gives
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DELL LAPTOP
(75 Reviews)
From Rs.38,4901
Price inclusive of all taxes and delivery
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New Vostro 3750 Laptop(with 2nd generation
Intel® Core™ Processors)
(13 Ratings)
write a review
From Rs.40,4901
Select
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Specially designed for small business, the Vostro™ 3750 laptop is
your desktop-replacement solution. Sophisticated, powerful and
sporting a 43.2cm (17.3") HD screen, Vostro helps you stay
connected and in control, with style and confidence.
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About the COMPAQ
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Compaq was founded in February 1982 by Rod Canion, Jim Harris and Bill
Instruments. Each invested $1,000 to form the company. Their first venture
capital came from Ben Rosen and Stevin Rosen Funds. The original Compaq
Two key marketing executives in Compaq's early years, Jim D'Arezzo and
Sparky Sparks, had come from IBM's PC Group. Other key executives
responsible for the company's meteoric growth in the late 80s and early 90s
were Ross A. Cooley, another former Amber, who served for many years as
SVP of GM North America; Michael Suavely, who was the company's chief
marketing officer in the early years, and eventually ran the North America
(another long time IBM executive) led the company's field sales
Ellington, Douglas Johns, Steven Flannigan, and Gary Stimac, helped the
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company with the IBM Corporation in all personal computer sales
categories, after many predicted that none could compete with the behemoth
laptop; some called it a "suitcase computer" for its size and the look of its
case. It was the second IBM PC compatible, being capable of running all
software that would run on an IBM PC. It was a commercial success, selling
53,000 units in its first year and generating $111 million in sales revenue.
The Compaq Portable was the first in the range of the Compaq Portable
series. Compaq was able to market a legal IBM clone because IBM mostly
used "off the shelf" parts for their PC. Furthermore, Microsoft had kept the
only part which had to be duplicated was the BIOS, which Compaq did
Phoenix Technologies were the first to follow their lead, but soon "clone
Biases" were available from many other companies who reversed engineered
1990s Compaq entered the retail computer market with the Presario, and was
order to maintain the prices it wanted, Compaq became the first top-tier
computer manufacturer to utilize CPUs from AMD and Cyrix. The price war
most notably IBM and Packard Bell, from this market[citation needed].
server line. This acquisition instantly gave Compaq a presence in the higher
minicomputers during the 1970s and early 1980s. This acquisition made
Compaq, at the time, the second largest computer maker in the world in
who engineered both mergers, had little vision for what the combined
companies should do, or indeed how the three dramatically different cultures
could work as a single entity, and Compaq struggled as a result. Pfeiffer was
forced out as CEO in 1999 in a coup led by board chairman Ben Rosen and
CIO. Capellas was able to restore some of the luster lost in the latter part of
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the Pfeiffer era, but the company still struggled against lower-cost
During November 1999, Compaq began to work with Microsoft to create the
Companions.[13]
In 1998, Compaq also signed new sales and equipment alliance with
NaviSite. Under the pact, Compaq agreed to promote and sell Navasota Web
Processor:
Intel Core 2 Duo Mobile
Processor T5870 (2.0 GHz)
(Intel GME965 Express Chipset /
2MB L2 Cache / 800 Mhz FSB)
Operating
Windows Vista Home Basic (32
System:
bit)
Memory:
3 GB PC2-6400 DDR2 (800 MHz)
Hard Disk
320 GB SATA
Drive:
Optical Drive:
8X Double Layer DVD +R/+RW
Writer
Display:
15.6” HD LED Backlit
BrightView™ WideScreen
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Carry Case:
Yes
Others:
WL / BT / 2 MP Webcam &
Microphone
Processor:
Intel Pentium Dual-Core
Processor T4200 (2.0 GHz)
(Intel GL40 Express Chipset /
1MB L2 Cache / 800 Mhz FSB)
Operating
Free DOS
System:
Memory:
2 GB PC2-5300 DDR2 (667
MHz)
Hard Disk
320 GB SATA
Drive:
Optical Drive:
8X Double Layer DVD +R/+RW
Writer
Display:
14.1" WideScreen (WXGA) with
BrightView
Carry Case:
Yes
Others:
WL / BT / One HDMI v1.3 /
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Webcam & Microphone
RESEARCH METHODOLOGY
METHODOLOGY
Research Design:
1. Exploratory research.
2. Descriptive studies
3. Casual studies
Sample Size:
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50 Respondents
Sampling Area –
Noida
Data collection:
data:
Observation
Questionnaire
Interviewing
Sources of data
Sampling Technique-
RESEARCH DESIGN
organizing framework for doing the study and collecting the data.
contact methods.
5. Descriptive studies
6. Casual studies
EXPLORATORY RESEARCH
PRIMARY SECONDARY
--- Govt..publication
PRIMARY DATA
These data are collected first time as original data. The data is recorded as
combined, totaled but they have not extensively been statistically processed.
SECONDARY DATA
Observation Method:
acquire data.
events.
definite purpose.
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Observation and analysis
Yes [ ] No [ ]
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Computer/Laptop
computer.
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2) Which brand of Laptop do you have?
HP [ ] DELL [ ]
Lenovo [ ] Acer [ ]
HCL [ ] Sony [ ]
Others [ ]
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From the Pie Chart it is clear that majority of the respondent own
in Gr.Noida city.
Yes [ ] No [ ]
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No. of people aware of
Portable laptops
From the Pie chart it is clear that it is clear that 75% of the
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4)What kind of computer you are using now?
Desktop computer [ ]
Laptop [ ]
Kinds Of Computer
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From the pie chart we can say that Laptop users are more than
5) How did you know about the type of computer you are using
right now?
Newspaper [ ] Magazine [ ]
Others [ ]
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Options from the people know
about computer
about latest sales offers from friends,family & newspaper. This gives an
insight that the media that can be effective in conveying sales promotion
has been brought out by the survey is the fact that majority of people buy by
looking at a feature in newspaper. This can be concluded from the fact that
41 percent of the buyers are those who seek information from Newspaper
Yes [ ] No [ ]
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Satisfied with your computer
It is clear from the most of people are satisfied with their computer.
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7) What according to you is important attribute for a Notebook?
Price
Agree [ ]
Strongly agree [ ]
Disagree [ ]
Strongly disagree[ ]
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important attribute for a
Notebook
Most of the respondent feel that price is the important factor while
purchasing a computer.
Service
Agree [ ]
Strongly agree [ ]
Disagree [ ]
Strongly disagree [ ]
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Neither agree Nor disagree[ ]
Majority of the user agree to the fact that after sales service is a
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8) What kind of IT equipment you are planning to buy?
Desktop [ ]
Notebook [ ]
Others [ ]
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Most of the people like the features of ultra mobile portable device
Yes [ ] No [ ]
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Computer has writing feature
Majority of the people said they will purchase a laptop which has
writing feature.
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10) Have you heard of Dell laptops ?
Yes [ ] No [ ]
No [ ]
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12) Do you know Dell customer care services are available in 11
Yes [ ] No [ ]
Most of the people don’t know that Dell customer care services are
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What I discovered - See the comparison
I believe this laptop comparison gives away some interesting insight on ...
laptop brand competition. Wow, it appears that HP now competes with
Toshiba (at least in the low-end laptops) and lets its cheaper brand Compaq
compete with Dell, while Sony stands apart. A proof to it is the prices!!! Dell
price is close to Compaq, HP is very close to Toshiba, and Sony is priced
way higher. Compaq is willing to slash $200 of the price to compete, just to
match the low-end laptop offers from Dell. What also became apparent is
what was expected: the lower the price the less value you get - Dell and
Compaq present the least value for the least money.
What else is interesting is that they score the same but based on different
features, so it looks like one brand is trying to offer an overall value similar
to another brand but at the different marketing angle. For example where
Dell is trying to offer a more versatile laptop (ability to read many media
formats, more USB ports, cheaper extended warranty), Compaq offers a
more powerful laptop (a slightly faster processor, bigger hard drive, more
cache memory and a longer battery life). Sony holds its prices while the rest
are engaged in the out-right war slashing prices and coming up with new
incentives every week. Brand recognition is everything. Sony's cheapest
laptop starts with the Intel Pentium Dual-Core processor - Sony doesn't go as
low as Dell or Toshiba or HP. This is reflected in Sony laptop prices. See
chart for complete comparison.
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Specs Dell Toshiba HP Compaq Sony
Cheapest
Laptops at
base
prices as
of June
15, 2007
Inspiron Satellite Pavilion Presario
Model VAIO N
1501 A133 dv6000z C500T
$499 (w/ $599 (w/ $589 (w/ $449 (w/
$100 $50 $100 $200
Price $899
instant instant instant instant
rebate) rebate) rebate) rebate)
Display 15.4" 15.4" 15.4" 15.4" 15.4"
Mobile Mobile Intel
Intel Intel
CPU AMD AMD Pentium
Celeron Celeron
Processor Sempron Sempron Dual-Core
M 440 M 440
3500+ 3500+ T2060
Speed 1.80 GHz1.86 GHz 1.80 GHz 1.86 GHz 1.60 GHz *
60 GB 60 GB 80 GB 80 GB 120 GB
Hard
SATA SATA SATA SATA SATA
Drive
5400RPM 5400RPM 5400RPM 5400RPM 5400RPM
Main
512 MB 512 MB 512 MB 512 MB 1 GB
Memory
Cache
512 KB 1 MB 512 KB 1 MB 1 MB
Memory
Video
256 MB 256 MB 256 MB 224 MB 224 MB
Card
(Shared) (Shared) (Shared) (Shared) (Shared)
Memory
CD-RW/ CD-RW/
CD- CD- DVD+/- CD- DVD+/-
CD, CD-
RW/DVD RW/DVD R/RW RW/DVD R/RW
RW, DVD
Combo Combo w/Double combo w/Double
Layer Layer
Battery 2.0 3.5
3 hours 3.5 hours 4.0 hours
Life (max) hours hours
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Weight 6.19 lbs 5.83 lbs 6.09 lbs 6.6 lbs 6.5 lbs
10/100
Network
Card Yes Yes Yes Yes Yes
(RJ45
port)
56K
Yes Yes Yes Yes Yes
Modem
Wireless
Yes Yes Yes Yes Yes
Card
Mobile
No No No No No
Card *
Integrated
Yes Yes Yes Yes Yes
Audio
Floppy
No No No No No
Drive
Media 1-Type II 3 incl.
Card 3-in-1 PC Card 5-in-1 none ExpressCard
Reader Slot 34
4 USB 4 USB 3 USB 3 USB
USB Ports 2 USB 2.0
2.0 2.0 2.0 2.0
FireWire
Port No Yes Yes No Yes
(iLink)
Vista Vista Vista Vista
Operating Vista Home
Home Home Home Home
System Premium
Basic Basic Basic Basic
Anti-Virus Not Not Not
Included Included
Software included included included
CD/DVD
Not Not Not
Burning Included Included
included included included
Software
Standard
1 year 1 year 1 year 1 year 1 year
Warranty
Return 21 days up to 25 21 days 21 days 30 days
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Policy days
Extended
4 year - 3 year - 4 year - 3 year - 5 year -
Warranty
$340 $179 $329 $349 $349
(max)
Free
Internet Yes No Yes No No
Shipping
Overall
5 8 8 5 13
Score
Recommendations
What else is interesting is that Dell or Compaq are only 1.8 times cheaper
than Sony, but they present 2.6 less value than Sony. (Also, Sony is only 1.5
times more expensive than Toshiba or HP but presents 1.6 times more
value.) This makes Sony a very good buy, in my view. In fact, I recommend
this Sony laptop as a best college laptop for students.(give link to college
laps?). The extended warranty options are unmatched. Vaio N has extensive
connectivity options including ExpressCard, up-to-date fast dual processor,
large hard drive and plenty of memory. Gives you some prestige, too ;).
Providing Sony's well-known quality, Sony Vaio N is my laptop of choice
this June 2007.
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Dell Computer surpassed Compaq Computer in the first quarter
to become the world's largest PC maker, the first time the
rankings have shifted in about seven years.
Dell achieved 12.8 percent market share worldwide in the first quarter,
surpassing Compaq for the first time on a worldwide basis, according to
figures released from research firm Gartner. Compaq ended the quarter in
second place with a 12.1 percent share of the world market.
Along with becoming the largest PC maker, Round Rock, Texas-based Dell
re-established itself as the fastest growing--with a vengeance. Dell saw
shipments of desktops, notebooks and Intel-based servers grow by 34.3
percent worldwide and 30.7 percent in the United States. Nearly everyone
else shrank.
Overall, the industry was sick. PC shipments in the United States declined
by 3.5 percent, a historical first, according to Gartner. Worldwide, shipments
climbed by 3.5 percent, worse than expected. At the beginning of the
quarter, Gartner expected to see 10 percent growth worldwide.
"All in all, the global economy faces considerable downside risks in the
months ahead, and just the fear of those risks could dampen PC buying
going forward," the firm wrote in a report. Chipmakers Intel and Advanced
Micro Devices warned in recent days that second-quarter revenue will drop.
Other researchers had similar projections. "It looks to me like it is still grim,
particularly on the consumer side," said Roger Kay, an analyst at IDC, which
came to similar conclusions. The market may grow in the second half, "but it
will be a very gentle curve, as opposed to a spike. We're not going back to
double-digit growth."
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In contrast to Dell, Compaq saw shipments grow by
an anemic 0.3 percent worldwide and decline by 17.9
percent in the United States.
Hewlett-Packard, which grew faster than Dell during parts of 2000, saw
shipments decline globally by 3.5 percent and by 24.7 percent in the United
States. Gateway saw domestic shipments drop by 9 percent.
IBM, which had been losing market share, saw business pick up. PC
shipments rose by 7 percent for Big Blue, boosting its worldwide market
share growth from 6 percent to 6.2 percent. In the United States, IBM's
shipments grew by 19.1 percent to move the company from 4.2 percent
market share to 5.2 percent. IBM, though, had a weak first quarter in 2000,
which made for an easy comparison, said Gartner analyst Todd Kort.
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The gap between Dell and the Dell-nots will also increase, he added.
The growth was fueled in part by price cuts Dell imposed starting last
December to capture market share. Because of its "build-to-order"
production system, Dell also can pass on changes in component costs
quicker than competitors. In addition, the company has also cut its profit
margin for the sake of increased sales.
At various times in the past three months, for instance, Dell has offered
customers free handheld computers with select laptops, free shipping, and
free memory upgrades.
Compaq held the lead in worldwide PC sales from 1994 through 2000. IBM
was the largest PC company from 1991 to 1994 and for various years in the
1980s. Apple shipped the most in 1990, according to IDC.
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FINDINGS & CONCLUSION
During the survey, it was found that 80% people are aware of
Compaq Laptops .
Most of the people are not aware that Dell Customer Care is
From the customer’s view 37% will buy this product because of
its feature.
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LIMITATIONS
Every project has some limitations even the researcher came across some
limitations while working on the project which made the analysis a little
Only limited number of Customer where it has been found 50 sample was
At the time of research most of the customer did not sincerely respond
to the researcher.
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SUGGESTION AND RECOMMENDATION
comparison to rivals.
pace.
Contact no.-
1.Age
Below 20 years
20 to 35 years
35 to 55 years
55 and above
2.Occupation
Serviceman
Businessman
Professional
Student
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3.Monthly Family Income
Dell
Compaq
Recognition
Satisfaction
6. Are you satisfied with the brand you are using presently?
Yes
No
First choice________
Second choice________
Third choice__________
Friends
Neighbors
Self Experience
Occasions
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8. Where do you come to know of latest brands?
Television
Films
Friends
Advertisements
25000-35000
35000-55000
10. Have you ever seen any kind of advertisement of “branded Laptops”?
Yes
No
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If yes is it has any impact on you?
Yes
No
dell
Compaq
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BIBLIOGRAPHY
MAGAZINES / NEWSPAPERS
Business Today
WEBSITES
• www.google.com
• www.dell.com
• www.compaq.com
• www.marketingterms.com
• www.internetworldstats.com
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REFERENCE
• -Financial Express
• -Times of India
• -Hindustan Times
• -Economic Times
• -Business World
• -India Today
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