| Compaq, Tandem Merger is Smooth: Compaq Japan's Pres.
April 29, 1998 (TOKYO) -- Hajime Takayanagi, president of Compaq
Computer K.K., said that the company is performing well in terms
of profits and sales, and he noted that no problems have arisen
from the January merger with Tandem Computers Japan Ltd.
|Takayanagi, who had been the president of the former Tandem
Computers Japan, answered questions in a recent interview.
BizTech: In the months since the merger, has business been
Takayanagi: The two companies are now completely consolidated in
terms of organization and business. Synergy effects due to the
consolidation are apparent.
One example is that a salesman for the super-parallel processing
Himalaya series server was able to obtain a large order by
proposing the desktop PC Deskpro for client terminals.
Before the merger, we didn't have specific preferences for
personal computers as client terminals for the Himalaya series.
But with the merger, we can offer Compaq products as client
terminals in the business negotiations for a large order.
BizTech: Were there any problems in the consolidation process of
the two organizations?
Takayanagi: I did not see any problems with the internal system
including business rules, consolidation of product lines,
marketing systems and other issues. The fact that both companies
are young also helped considerably.
Some differences were apparent in internal terminology between
the former Compaq and the former Tandem, but that is of little
significance. We are having a very smooth honeymoon.
BizTech: Compaq Computer Corp. has a stagnant business in the
United States, with little prospect for profits in the current
quarter. What is the situation in Japan?
Takayanagi: In the first quarter ending March, both sales and
profits increased steadily from the first quarter of the last
As for profits, the Himalaya series has contributed a lot, and
personal computers are profitable.
Compaq's poor business results in the United States in the first
quarter were temporary. That was because of temporary inventory
snags when the business model was changed from production based
on projected demand to BTO/CTO (build-to-order/configure-to-
Sales results for personal computers are good in the United
States, Europe and Japan. Business is far from being bleak.
BizTech: Why wasn't excess inventory seen in Japan?
Takayanagi: Inventories at dealers never grew large in Japan.
Compaq's Japan unit was not well equipped to accumulate
inventories, and it was in a good position to transfer to the
BizTech: Can you give concrete figures of business results?
Takayanagi: I cannot disclose any concrete figures of units sold
and the sales amount in Japan. This is the company policy of
Compaq of the United States. However, I can say that business is
BizTech: A cooperation agreement was concluded with Otsuka Shokai
Co., Ltd. in March to expand the PC business. Why did the company
select Otsuka Shokai?
Takayanagi: We concluded the agreement on the Channel
Configuration Program (CCP) designed to build PCs for enterprises
to exact user specifications.
Under the CCP program, we demand that dealers clear dozens of
strict standards regarding the fabrication facility.
Compaq concluded the agreement with Otsuka Shokai because its CTO
Center, the PC assembly facility inside its logistics center, met
our high standards.
We couldn't find other domestic PC dealers with assembly
facilities comparable to those of Otsuka Shokai.
BizTech: Compaq will merge with Digital Equipment Corp. What will
be the result in Japan?
Takayanagi: I cannot make any specific comments now. However, the
Japan units of the two U.S. companies will not merge by any
means, although newspapers have reported that there would be a
merger in June.
(Hi-Tech News Center)