IAteYourMother
Lifer
Just a correction -- HP was already well established in the PC market prior to their merger with Compaq. The merger was seen as an attempt to combine resources and overcome Dell, which at the time was the largest PC vendor.
<===== former Compaq employee
True, but the merger was a massive undertaking that shifted the company's focus more toward PCs.
http://www.economist.com/node/954746
"Mr Hewlett maintains that it should stick to its knittingthat is, areas in which it has a clear technological lead.[...] Instead, he thinks HP should focus on what it does wellin particular, on its highly profitable printing and imaging business. [...] In contrast, Ms Fiorina sees greater scale in PCs, and a greater emphasis on services, as the best way to respond to commoditisation. Teaming up with Compaq, she insists, will enable HP to exploit economies of scale in PCs, and thus to compete more effectively with Dell, the nimblest computer maker. "