MAPÚA INSTITUTE OF TECHNOLOGY
School of Graduate Studies

Case 1: Operations Strategy at Compaq Computer

Submitted by:

REMSON MARK C. MACAWILE
Student # 2014490012
MSEM – 1st Year

to:
Prof. Marvin Norona
School of Industrial Engineering-Engineering Management

EMG213-COM
PRODUCTION AND OPERATIONS MANAGEMENT
1st Quarter SY 2015 – 2016

Case 1: Operations Strategy at Compaq Computer

I. Problem
Analyzing the operation strategy used by Compaq Computer in relation to the given operation strategy framework given. Also, to assess the risk by outsourcing so much of Compaq Computer’s products

II. Review of Background Information
Compaq Computer holds 20% of the world PC market with 11,800 employee and positioned itself to the market as a $3.6 billion company. Comapq uses small productdevelopment teams that include marketers, designers, engineers, and manufacturing experts. Comapaq’s strategy is to buy most components rather than making it by themselves.
Components and software for their PC is being outsourced from other company that offers better product.
III. Analysis
From the framework given in the exhibit
(see figure 1), Compaq’s strategy uses the quality, and speed as their key performance priority. They provided the customer needs by providing new products which are combination of outsourced components from companies with best available product in the market. As stated, Compaq is composed of a small group of marketers, designers, engineers, and manufacturing expert as its product development team. Thus, Compaq strategy doesn’t include R&D as part of their enterprise capabilities. Figure 1: from customer needs to order fulfilment framework

To secure success of Compaq’s strategy, the enterprise capabilities should round around the supplier capability specifically in suppliers’ capability to provide the latest