Hewdoo and Dellware: A Strange New World - Ramifications
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The ramifications of these acquisitions for the PC industry are significant and will lead to several interesting changes over the next few years as Alienware and Voodoo will each grow because of their respective partners, and then will likely be subsumed by them.
Alienware and Voodoo are exceptional marketers and developers within a niche market of machines for gaming enthusiasts who craved the latest and greatest technologies to combat their friends and relatives with over LAN connections. Both companies crafted images and brand loyalty unparalleled in the computer industry and developed fan bases not seen among the larger manufacturers.
Dell and Hewlett-Packard, however, have not necessarily proven themselves to be champions of innovation or even good corporate citizens of late. Dell is being threatened with delisting from the NASDAQ stock exchange for failing to submit its Form 10-Q to the Securities and Exchange Commission in a timely manner at the end of its fourth quarter. This is only the tip of the iceberg for the current woes being faced by the manufacturing giant. A number of investigations have been conducted into the companies' financial and accounting records for possible "misstatements" in its prior period reports dating back as far as 2002 (see Enron, Worldcom, etc.) in addition to the ongoing "exploding laptop" fiasco.
Hewlett-Packard, on the other hand, is experiencing significant problems at home as well. HP recently took a tongue-lashing from the U.S. House Energy and Commerce Committee over the exposure of details related to electronic snooping conducted against its own board members and nine journalists by an outside company hired by Hewlett Packard. Patricia Dunn, former Chairman of Hewlett Packard, was advised by the company's legal team of potential illegal activities being conducted by the company and a probe of the company's affair was quietly being conducted under her and under her successor Mark Hurd.
Both companies have proven one thing over the past several years as the PC industry has grown, matured, shrunk, and started to grow again: they're survivors, at any cost.
The acquisition of Alienware by Dell and Voodoo by HP will strengthen the brands in the short run as each of these smaller companies will benefit from the increased research and development departments to which each is gaining access. They will be welcomed with open arms by their respective "partners" and will grow their brands over the next several months. However, during that time the corporate culture will begin to infest and grow like a cancerous tumor on these companies and significant changes will be seen.
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