Competition and Collaboration in the PC Industry: The Evolution of a Value Chain (A)

The three cases in this series trace developments in the PC industry from its inception to 2006 and allow us to examine issues of collaboration and competition as the value chain in the industry evolves. Case A looks at these tensions through the lens of the relationship between two of the industry’s most successful companies, Compaq and Intel. As Case A describes, Compaq was the world’s largest PC manufacturer in the mid-1990s. Compaq computers used Microsoft software and Intel processors. Compaq was Intel’s largest customer and Intel was Compaq’s largest vendor. Unsurprisingly, it caused quite a stir when Compaq and Intel executives launched a heated public discussion at a European technology conference in September 1994. See Case B (UV1012) and Case C (UV1013).

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