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TYPES OF MERGER:
1.
2.
3.
4.
Horizontal merger
Vertical merger
Conglomerate merger
Concentric merger
EXAMPLES
1.Indian Fisheries results merger of Air
India and Kingfisher Airlines
2.Sikkim Bank Ltd. And Union Bank of
India.
3.New Bank of India and Punjab
National Bank.
INTRODUCTION
*HP is well established in imaging and printing system .
Compaq is well established company in providing PCs.
HP is known for innovation and quality
Compaq is known for its information technology service which
provides one-stop solution.
HPs software and service businesses had great potential
Compaq on other side had a strong distribution channel.
Carleton S Fiorina strongly in favor of merger
Walter B Hewlett, son of one of the founder member was against
the merger.
SWOT of HP
Strengths
1. Imaging and printing system
2. Strong reputation for innovation
3. Strong in UNIX servers.
Weaknesses
1. Declining growth of PC market
2. Weak in server market
Opportunities
1. Expand services and enterprise
solution divisions
2. Increasing demand of cloud based
services
3. Acquisition of more technology related
patents
Threats
SWOT of Compaq
STRENGTH:
1. Huge Hardware business
2.Strong distribution channel
3.Known for information technology
WEAKNESS:
1. At time of merger, it hade huge. inventory
2.Dell had strong position in online business
3.Less capable of taking orders and customizing computers
Opportunities
1.Compaq is renowned in pc hardware
2.Serve the customer in a better manner
Threats
1. Competitors are Dell, IBM & HP itself
2. Lack of online business
Financial Benefits
Estimated $2.5 billion in annual cost
Would allow HP to increase investment in the
imaging and printing business
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Revenue
Operating income
Net income
Total assets
Total equity
Employees
331,800 (2012)
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